Arcaplanet-Fressnapf deal (II): From being a reference in Germany to becoming a European leader

Arcaplanet-Fressnapf deal (II): From being a reference in Germany to becoming a European leader

The German pet retail group is taking a big step in Italy to continue pursuing its goal of capturing more of the European market.

Fressnapf has recently been in the news for announcing strategic acquisitions, investing in logistical capabilities and enhancing visibility to expand its market presence.

From €4 billion to €5 billion?

Fressnapf hit a turnover of €4 billion ($4.3B) in 2023, displaying an increase of €475 million ($514.3M) in sales in a year.

The acquisition of Italian pet retailer Arcaplanet is expected to add €700 million ($757.36M) to Fressnapf’s revenue, which could lead the German retailer to a turnover of €5 billion ($5.41B).

Investments

In 2023, Fressnapf reportedly set aside €500 million ($541.4M) for investments over the next 3 years.

A few months ago, the German firm invested €80 million ($86.5M) in its largest e-commerce warehouse. The investment was also aimed at enhancing Fressnapf’s supply chain capabilities.

The capital injection was intended to help the group enter new markets like the Netherlands, where, in 2023, it acquired Dutch pet retailer Jumper Groep to strengthen its position in the country.

Last year, Fressnapf opened a 47,500-square-meter logistics warehouse near Berlin to supply 400 stores in northern and Eastern Germany, Poland and Scandinavia.

More stores

Fressnapf forecasted to open 120 new locations last year. GlobalPETS also reported on the retailer’s intentions to have a network of at least 80 stores in Hungary and over 100 stores in Romania.

Maxi Zoo, which is owned by the German group, recently inaugurated its 350th location in France. By the end of this year, it aims to have 384 stores open and 600 by 2028.

Transformed ecosystem

Services are an important part of Fressnapf’s ecosystem’s future. By 2026, the German company plans to open 300 grooming salons in its stores.

“From the experience we gained so far, the salons accelerate the business in the market,” admits Kristina Kain, Fressnapf’s International Head of Sales and Expansion Salon.

Germany, Austria, Switzerland, France and Ireland comprise its focus markets, though “recently expanded markets” like Luxembourg, Denmark and Belgium also display potential.

In a recent interview with GlobalPETS, CEO Dr. Johannes Steegmann and German Country Manager Jochen Huppert described what is going to be “the biggest transformation” in the company’s history”: a new store format with fresh services like their own GPS trackers, digital insurance solutions and subscription boxes in its home market.

New image to gain customer fidelity

This year, the retailer is focused on maintaining operational excellence and improving customer acquisition, loyalty and multichannel strategy.

One of the most visible changes included the recent decision to update its iconic logo after 3 decades, aimed to highlight its transformation from a product-focused company to an omnichannel retailer.

As part of the company’s rebranding strategy, Maxi Zoo became Fressnapf in French-speaking Switzerland last February in a bid to strengthen the brand and unify recognition.

The company has also adopted means to strengthen its customer loyalty program through its app.