Natuurwinkel and Estafette: business formats with ambition

When buying food, a steadily growing group of customers regard health and sustainability as particularly important. In the Netherlands, this has resulted in a gradual rise in the number of organic shops, accompanied by an increase in the size and quality of the stores too. In 2007, turnover rose by 10 %. This development is being driven by the various concepts adopted by specialist stores like Estafette, Biotoop, Natuurwinkel and EkoPlaza.

Picture: Estafette Nijmegen

The specialist organic stores belonging to Estafette are part of the Estafette Association C.V. of producers, retailers, wholesalers and consumers. The wholesaler Odin, known among other things for its fruit and vegetable box schemes, belongs to this interest group. The Estafette concept was launched four years ago and now it has ten stores. Estsafette stocks a full range of all the essentials, including a generous supply of fresh foods. All products come from organic or bio-dynamic agriculture. “Just a few products are not organic, including mineral water, sea salt and a number of household articles,” explains Koos Bakker who, together with Luuk Röverkamp, is responsible for managing the Estafette Association C.V.

Estafette buys as much as possible direct from farmers, bakers, butchers and other suppliers. “Everyone involved enjoys the benefits of the Association. We make every effort to coordinate the supply side and the demand of our customers. The important factor is a reasonable price for products without compromising quality. Estafette wants everyone in the chain to receive an appropriate return for their contribution and this in turn means that everyone in our association benefits from continuity,” says Mr Bakker.

The eleventh Estafette store was opened at the beginning of 2008 in Amsterdam. Koos Bakker’s aim is to launch on average two new stores a year. “There are still plenty of places in this country where we would like to set up our shops. Just 100 m² of retail space is enough for an Estafette shop, but we can make full use of 300 to 400 m² as well.”  He also says that turnover and the way it is developing are very positive. “In the years ahead, we are going to invest a lot of time and energy in educating and training so that the Estafette Association can carry on developing. We want our employees to be thoroughly familiar with the products on our shelves. We help our managers by taking over some of the usual responsibilities – such as looking after marketing, communications and stock management - and by providing support in administration, employee issues and business automation. This frees up the managers to concentrate totally on the customers and team leadership.

The Natuurwinkel shops that belonged to the Natuurwinkel Organisation (NWO) –an association of wholesalers and retailers - were taken over at the beginning of 2007 by Natudis. By the end of 2007, customers were already able to do their shopping in refurbished premises in Oss, de Bilt, Alkmaar, Zwolle and Utrecht (pictures). During 2008 all 50 Natuurwinkel stores are to be renovated. The emphasis in these specialist stores is on fresh products like fruit, vegetables and bread that are displayed at prominent points in the stores. The modern style is very popular with all the store owners.

Marc Koetsier from Natudis wants to make the Natuurwinkel stores attractive to a wide target group. “We want to be a full-value alternative to the supermarket, and that’s why we sell a complete range of organic products.” According to Mr Koetsier, it is environmentally- conscious and health-conscious customers who regularly buy organics in the supermarket but who have not yet found their way to a wholefood store. “These are our potential customers. We want these customers to associate wholefood with “nice and tasty”. We are strong on communication but it is above all light and with touches of humour.” Information is conveyed in short, snappy texts. The new image radiated by Natuurwinkel stores is inviting and is intended to overcome customer reluctance to try something new.” The reaction of regular customers to the new shop is positive,” says, for example, the Natuurwinkel owner in Oss. In Mr Koetsier’s opinion, a shop needs at least 150 m² of retail space to stock a full range of Natuurwinkel products. “Only then can you claim to be a full-value alternative to the supermarket.”

In the Netherlands 50 franchise holders operate under the name Natuurwinkel. The management of Natudis has stated that the test stores have proved that the new concept has been a success and now eleven stores are waiting to be renovated in the new style. The changeover is taking place gradually. Natudis’s target is 100 stores. Mr Koetsier continues: “That’s existing and new Natuurwinkel stores that will be set up in accordance with the new principles. This volume brings advantages, for example, in purchasing and the individual store operators will benefit.” They will also derive benefit from Natudis’s long years of experience. Mr Koetsier emphasises the point: “We know how much of each product group there has to be on the shelves and at what height they have to be placed for maximum efficiency. The same applies to the fitting out of shops and their outward appearance as well.” Individual shops are not obliged to take over the whole concept package, but stores must have a recognisable presence and good product presentation in keeping with the Natuurwinkel concept.

The company says that a customer survey in Oss showed that customers, non-customers and light users evaluated Natuurwinkel stores positively. It was also clear that customers like to see close ties with the locality. In Utrecht, a map was hung up in a store showing where products came from. Mr Koetsier is pleased with the turnover. The stores are achieving an increase in turnover of 8 % and more since they converted to Natuurwinkel. The franchisers regularly pass on information about new developments. “We took the conscious decision in favour of franchising. We notice that the independent entrepreneurs show more commitment and know more about the products and how to run a business.”

The Natuurvoedings Winkel Organisatie (NVO) is an independent association of brand suppliers and distributors of wholefoods and “Natudis” health food products. This organisation is responsible for the new strategy of Natuurwinkel. As well as providing assistance with management and finance, it takes care of info mail, newsletters, adverts, flyers, posters, recipe cards, identifying award winning products and other operating inputs in the concept style.