Customer Experience

DIY Giant Praktiker Drives Rocketing Sales

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When the roof falls in, how will you cope?

The 2008 global financial crisis shook the foundations of the housebuilding industry. As looming uncertainty rattled the nerves of consumers and corporate investors alike, many construction and home improvement projects were shelved.

For DIY companies such as Praktiker, this news spelled disaster. Declining sales struck its outlets across Europe, and in 2013 a number of its subsidiaries filed for bankruptcy.

Amid this gloom, Videolux Holding spotted a glittering opportunity. In 2014, the company acquired the Praktiker Bulgaria operations – including several very large stores – and set out to put the faltering business back on track. Since many physical stores were undergoing refurbishment, the online channel offered the fastest means of revitalizing the business.

Partnering with IBM, Praktiker rebuilt its web presence from scratch in just five months. The new site, which runs on SAP Hybris Commerce, makes it easy for customers to browse and buy from the company’s catalog of over 40,000 products. Because the SAP Hybris Commerce solution is closely integrated with the core SAP ERP systems that manage warehousing, product picking, logistics, procurement and more, Praktiker achieves exceptional operational efficiency.

The project was a massive success, as Kalin Georgiev, Chief of Electronic Data Processing Department at Praktiker, explains: “The advanced features of the SAP Hybris Commerce solution combined with the expert advice from IBM Global Business Services put us in a strong position to reach our goals and achieve sparkling business success.”

The new online store has proved a hit with customers. In the seven months since go-live, the site racked up an impressive 1.365 million visits from 750,000 unique users. During that period, traffic has steadily climbed from 1,500 daily visits to 5,000 – more than three times higher. Increased traffic has translated into higher revenues, with monthly sales and online orders almost tripling in the same period.

To keep customers keen, Praktiker offers attractive promotions and discounts using automation from SAP Hybris Commerce. What’s more, Praktiker has been using its online store to build excitement around its brand. By boosting the appeal of visiting its physical stores, the company has hiked offline sales by 30 percent.

Putting the finishing touches on its transformation, Praktiker has also scored a significant rise in average transaction values. Remarkably, this stunning success has been achieved while keeping staffing levels flat, so rising revenues are directly driving booming profitability.

So next time the roof falls in, don’t despair. Remember that when a door closes, a window often opens, and start searching for your gateway to success.

Learn about Praktiker: http://www.praktiker.bg/en/

For more information about IBM Global Business Services, visit: https://www.ibm.com/gbs

To find out more about SAP Hybris Commerce and other SAP Hybris offerings, visit: www.hybris.com

Read the case study: http://ibm.co/2dFvD1p

SAP Customer Engagement and Commerce Leader, Europe

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