Article: Hyperburo continues its acquisition strategy
| 17 November, 2017
Hyperburo is targeting 100 sale points (retail stores and dealers) in France and sales of €100M by 2020.
Buro Center’s 13 retail stores, including 6 fully-owned under the Buro Shop Concept, has brought the number of points of sale in the Hyperburo network to 66 with annual turnover of approximately 70 million euros. The majority of sales derive from the 51 superstores across France and is supplemented by 15 B2B office supplies dealers.
The founder of Buro Center Claude Angibaud decided to join Hyperburo due to the similar structures of the two networks and common opportunities for development.
Gérard Mikaelian, CEO of Hyperburo, sees the latest acquisition as another opportunity to drive the business forward: “Hyperburo is close to Buro Center in terms of business practices and structure. We are both multi-channel organisations with a mix of superstores and B2B office supplies dealers. We will support them in their development. The strength of the group will increase by the addition of new members, and not only in terms of turnover. We strongly believe that by joining our strengths with Buro Center, we will achieve our strategic objectives within a year.”
The Office Times found out from Bertrand PETIT, Directeur de réseau, about why Hyperburo is continuing to expand and how the network aims to reach its goal of 100 million euros of sales by 2020.
How will the acquisition benefit Hyperburo?
The 13 Buro Center superstores have added approximately €10 million to Hyperburo, including the 6 fully-owned stores, 7 franchises and a direct sales team that operates in Charente-Maritime and neighbouring departments in France. The whole business will be operated under the Hyperburo banner by the end of the year. Of our 51 superstores, 44 are larger stores on the periphery of towns and 7 are City stores, which are smaller, but more centrally located. Including the additional 15 office supply dealers, we have €70 million in sales, based on purchase volumes of approximately €45 million, which is a growth of around 20%. Expanding the business makes it possible to significantly improve purchasing terms with our 60 preferred suppliers.
Additionally, a larger entity also makes it easier to attract new partners and investment. Our target is 100 resellers (retail stores and dealers) and €100 million sales by 2020 in France. To achieve this goal we needed a new and imaginative strategy that blended internal and external growth. While looking for new opportunities outside of the network, we are also working with our franchise partners to help them with mergers and acquisitions of neighboring companies in the same sector. We have targeted more than 80 companies and have entered into partnership agreements with leading financial groups. Certain geographies such as the South East quarter of France and the North East, have been prioritized in order to ensure a better national coverage of the network.
How do you position yourself in such a competitive market?
We focus on what makes the HYPERBURO concept unique. Firstly, this lies in its totally multichannel character, combining B2C stores, B2B dealers and the Internet. Secondly, we have a very human-facing approach based on the proximity of dealers to their customers. We have also invested in web sales with the newly redesigned HYPERWEB website (hyperburo.com), which was put online at the end of September. This site prioritizes user friendliness to allow customers to place orders in a matter of minutes. To date, approximately 25% of our sales are made through the Web, and this trend is expected to increase significantly with the installation of the HYPERWEB Site within 2 years. New services will appear on this site to make it a showcase for the network and improve the visibility of all points of sale.
How else are you driving sales?
The next general catalogue, which will be released next January, will have 9,000 references. This large assortment allows us to cater to all the needs of end users. The HYPERBURO convention is also a very useful platform for our partners. The next edition will include 60 referenced suppliers and will take place from Tuesday 5 to Thursday 7 December 2017 in La Rochelle. The key word of the network is Hyper-Proche, meaning closeness in French. This relates to the services of each B2C or B2B partner meeting the specific needs of its customers.
What is your strategy to compete with online resellers?
Human contact! Our dealers are in daily contact with their customers, which are all less than an hour away from the warehouse or store. Importantly, our prices are often more attractive too. This close contact with customers, which is such an integral part of our DNA, is obviously assisted by modern technology. HYPERBURO provides its dealers with the group level purchasing conditions and sales tools (catalogues, promotional materials, advertising, logistics and online sales site) that enable them to compete with all national and international resellers.