After insolvency: Forstinger plans new branches in NÖ and Vienna

After emerging from insolvency, the automotive parts chain Forstinger is planning new stores in Lower Austria and Vienna. According to company managing director Rudolf Bayer, this year will mark the first time since the third insolvency that the business expects a significantly positive operating result. “We have successfully returned to profitability,” he told the Kurier newspaper. The company completed its restructuring last September, which succeeded due to extensive cost-cutting measures. For example, part of the logistics was outsourced, and the company’s central warehouse was reduced from 8,000 to 2,000 square meters. Additionally, employees went five months without receiving ten percent of their salaries. “It was a tough time,” Bayer summarized. “But it forced us to take every stone into our hands and consider where we could optimize.” Forstinger plans to expand its workshop business. The service share of revenue has grown significantly over the past two years, rising from eight percent to 18 percent. As a result, the company is focusing on expanding its workshop operations. This year, ten additional lift platforms were installed at existing locations, and old machines were replaced with modern equipment to work faster during busy periods in autumn and spring. Overall, the company invested 85,000 euros in workshop equipment this fiscal year. The locations are not only being upgraded but also replaced. Last October, Forstinger opened a new location in Neunkirchen (Lower Austria) in the former Zezula car dealership and closed the previous branch there. Since then, the site has offered not only § 58a inspection checks but also comprehensive workshop services with three lift platforms and three mechanics. “This is not only well received in the city of Neunkirchen but throughout the district,” Bayer noted. Previously, the company had also relocated a location in Baden near Vienna. New locations are planned in Vienna, Lower Austria, and Tyrol. Currently, up to 20 locations exist where “an exchange would make sense to improve them technically,” Bayer explained. In St. Pölten, the managing director has been searching for new business and workshop spaces for several months. “Our lease is expiring, but we want to remain in the state capital at all costs.” Existing locations will be joined by more in the future. Bayer mentioned two to three new branches per business year, possibly even more if costs remain neutral. Overall, the chain aims to grow from 69 to 80 locations. Particularly in Vienna and Lower Austria, the network should become denser. Growth potential is also seen in the Innsbruck area. The online shop operated by Forstinger since just over a year ago is growing slower than initially anticipated. While the platform generally functions well, it is developing more slowly than expected, Bayer reported. There are still too few products available in the webshop, and stocking individual items is labor-intensive. “Perhaps I was a bit too optimistic and thought it would be simpler. But it takes a lot of time and is also a personnel resource issue.” Bayer did not disclose how large the online share of sales is. Since May, the automotive parts chain has also become the 17th partner of the Jö-Bonusclub. The customer loyalty program is certainly interesting for the company, but Bayer emphasized that success cannot be achieved overnight. Some store managers have reported that since the partnership began, more new customers have been coming to the stores. Soon, the company will collaborate with Jö management to analyze data from the initial period.