AMSTERDAM, The Netherlands - AkzoNobel has announced its intention to divest its decorative paints stores for professionals in Germany to independent wholesale distributors.
The move is intended to strengthen the performance of the company’s German Decorative Paints business by focusing its activities on the distribution and marketing of paint under brands such as Sikkens, Herbol and Consolan.
"We are changing the marketing strategy of our German Decorative Paints business to focus on our key organizational strengths of marketing and distributing our strong paint brands," said Ruud Joosten, the company's Executive Committee member responsible for Decorative Paints. "This is part of our ongoing efforts to strengthen both our organizational efficiency and our profitability in Germany."
The company currently operates 72 German stores selling professional paint and third-party products, with the Decorative Paints organization employing around 950 people in Germany.
The new set-up will allow AkzoNobel to select the most efficient distribution channels for its professional paint products, rather than operating its own stores. The company intends to enter into strategic partnership agreements with the future shop owners, as well as strengthening its relationship with its existing network of independent distributors.