Rewe achieves record sales
This was announced by the rewe headquarters in koln on wednesday. However, the group’s balance sheet is burdened by the restructuring of the loss-making discount subsidiary penny. In a newspaper interview, rewe ceo alain caparros hinted at a drop in operating profits due to special effects. The 2011 consolidated financial statements will be presented in may.
"Even under challenging conditions, we are growing steadily and profitably," the rewe boss said in a statement. Among other things, the kolner group is relying on an attractive product range, modernization of its stores and targeted acquisitions. The group’s own rewe supermarkets in germany proved to be the growth engine in 2011, achieving an increase in sales of almost 10 percent and thus gaining market share. In comparison, industry sales in the food retail sector in germany grew by only 2.4 percent last year.
The theory that the classic supermarket is experiencing a renaissance, while the discounter has reached its zenith, should be taken with a grain of salt, caparros told the "frankfurter allgemeine zeitung" (FAZ/wednesday). The supermarket segment has recently gained market share again, mainly because of very aggressive advertising in the sector and the fact that a significantly higher proportion of goods are sold via price promotions. "The price argument, however, was soon exhausted, the copying of the discounters by the supermarkets has its limits."
In the future, supermarkets will have to distinguish themselves even more through quality, freshness and the shopping experience, he described in the FAZ interview. Caparros announced extensive investments in the renovation of supermarkets in germany and austria (billa). "The formats that earn the money should not be allowed to suffer from the penny redevelopment, after all."According to reports, the group has increased its total investments for 2012 compared to the previous two years (then 1.2 billion euros). Penny alone invests a mid-double-digit million euro amount in 2012, according to its own figures.
According to the rewe management board, the realignment of penny deutschland is already having an impact: in 2011, sales at the fourth-largest discounter in germany after aldi, lidl and netto rose by 1.9 percent to 6.7 billion euros. However, the increase in sales was at the expense of earnings because of special promotions, the FAZ wrote. Penny deutschland was in the red again in 2011 after 2010, penny boss jan kunath had already reported. He wants to drive penny out of the red with refurbished stores and a streamlined branch network. 71 unprofitable penny stores to be closed in 2012.
The rewe group’s 2011 balance sheet was significantly impacted by provisions for the conversion of penny, among other things, caparros admitted in the newspaper interview. He did not give any figures yet. In 2010, the group’s operating profit (EBITA) amounted to around 502 million euros. The sales of the entire rewe group, including the cooperatives and the approximately 900 independent rewe retailers nationwide, amounted to 48.1 billion euros. This is less than in 2010 (53 billion euros), because rewe disposed of its wholesale shareholding. Sales at the independent retailers, whose supermarkets also operate under the red-and-white rewe logo, also rose by almost 10 percent in 2011.
