Sales from its Kaiser chain were “stable”

Sales from its Kaiser chain were “stable”

German retailer Tengelmann, which owns the supermarket chain Kaiser, booked an increase in full-year sales but offered a cautious outlook for 2013.

In the 12 month period, Tengelmann recorded total revenues of EUR11.08bn, a 2.9% increase on last year. A third of sales were earned outside of Germany, it said.

Sales from its Kaiser chain were "stable" with revenues of EUR2.13bn. It didn't report last year's figure.

CEO Karl-Erivan W. Haub said: "Following the positive trend of the past fiscal year, the view for 2013 is cautious optimism. The catastrophic flood that affected a wide part of Bavaria and eastern Germany, Austria, the Czech Republic and Poland had massive consequences for the group. More than 80 branches were temporarily closed or damaged by the high waters. Sales losses also occurred in markets that could not be supplied due to the severe flooding."

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Tengelmann Group posts a positive outcome once againPrint

Mülheim an der Ruhr, 11 July 2013 – The Tengelmann Group closed its 146th year of existence with total revenues of 11.08 billion euros, equivalent to a currency-adjusted increase of 2.9 percent compared to the same period in the previous year. “Despite continued difficult overall conditions in the preceding fiscal year, we were able to once again record a comfortably positive result with decent sales growth. Our high equity ratio of 37 percent continues to give us the freedom to act entrepreneurially,” explained Karl-Erivan W. Haub, CEO and managing partner. On the balance sheet date (31 December 2012), the Tengelmann Group was active in 18 countries; a third of sales were earned outside of Germany. A total of 83,826 employees in 4,346 branches and e-shops as well as service, logistics and real estate companies contributed to this success. 

What started as a small colonial goods wholesale business has expanded over five generations into an international multi-segment retailer. “You have to keep up with societal development and position yourself accordingly. For this reason, we have created two additional promising pillars with the expansion of our e-commerce and real estate activities, in addition to our traditional stationary retail business areas,” said Haub.

2012 saw increased indications of sustainability. In addition to the large retail business areas and the holding company of the Tengelmann Group submitted the first sustainability report for the group headquarters at the Mülheim an der Ruhr location, certified according to the guidelines of the Global Reporting Initiative (GRI). Included were completed and planned CSR projects in the various business areas. 

Kaiser’s Tengelmann sets great store on freshness
The supermarket Kaiser’s Tengelmann GmbH earned stable sales of 2.13 billion euros with 17, 089 employees. The network of locations in the three core regions of Berlin, Munich/Oberbayern and North Rhine includes 512 branches of which 25 were converted to the successful “Black-Red-Gold” concept during the previous fiscal year. These special branches emphasise a special shopping environment, quality, freshness and service. “Even in the traditional business areas, we have positioned ourselves as modern. Thus we have the Bringmeister delivery service, established more than ten years ago in Berlin and Munich and now expanded to Düsseldorf and Meerbusch,” explained Haub. Kaiser’s Tengelmann has set up generation-friendly stores to better meet the demands resulting from the influence of demographic change and the buying habits of the customers. Above all, handicapped accessibility, specifically trained staff and an easily reachable shelf height make shopping easier for older customers. The generation market is only one of many CSR projects that were presented in the first Sustainability Report for Kaiser’s Tengelmann GmbH.

KiK with a modern look
The economically prices fashion retailer KiK suffered capricious weather in the last fiscal year. A very cool summer was followed by a warm fall and winter which made the sale of seasonal merchandise particularly difficult. Nevertheless, KiK closed the prior fiscal year with a revenue of 1.75 billion euros and an increase of 3.5 percent. With the recent market entry into Poland, KiK is currently in eight countries (Germany, Austria, the Czech Republic, Slovenia, Hungary, Slovakia, Croatia and Poland) with 3,249 locations and 21,136 employees. In fiscal year 2012, the chain stores started converting to the “KiK 17” concept, which provides more shopping atmosphere by significantly changing the original KiK design with light floors and merchandise fixtures, a new lighting concept and silver-grey presentation areas. The new layout will eventually be rolled out to all locations. “The great reception that we have experienced from our customers at the stores that have already been converted shows us that modern store design and low prices are not a contradiction!” said Haub. KiK has also recently entered the world of digital shopping with KiK24. The offering includes a selected product range of clothing for women, men and children, decorative items, household textiles and household goods at the low prices customers have come to expect. KiK is already working on creating a second Sustainability Report, an additional inventorying of business activities in the areas of economy and ecology and social responsibility. This also includes close cooperation with aid organisations and NGOs for the improvement of labour conditions in the main procurement markets. Following fires and the collapse of a textile factory in Bangladesh, KiK was the second German company to join the international Alliance for Fire and Building Safety.

OBI is “Top Employer in Germany 2012”
In the hotly contested German home market, OBI is again number one in the construction industry. Indeed, OBI also had to contend with atypical weather in the past year, but nevertheless was able to earn 6.87 billion euros with 43,778 employees. This corresponds to a currency-adjusted increase of 2.9 percent over last year. “OBI operates 585 stores in 13 European countries; 344 of those are in Germany. The opening of 15 new locations is planned for the current fiscal year. “Our focus for expansion continues to be on the core markets of Germany, Italy, Russia, Poland and Austria.” Russia in particular is a market with great potential for us,” explained Haub. Even do-it-yourselfers are happy to shop online; obi.de grew within this sales channel and will continue to expand its offerings in a cross-channel direction. OBI customers value the large selection of more than 60,000 items in the stores, the good price-performance ratio and the high quality of the advice from employees. Training and continuing education have traditionally received special emphasis at OBI. This is reflected in the second place ranking as “Top Employer in Germany 2012”. OBI received this award for the fifth year in a row. 

E-commerce
Under the umbrella of Tengelmann E-Commerce GmbH, the Tengelmann Group combines the venture business as well as its online stores Plus.de and Baby-Markt.de. “With more than 30,000 items from all areas and growth rates of over 50 percent, Baby-Markt.de is the leading online specialist for baby and toddler needs in Germany,” said Haub. In the meantime, the company is also active in Poland, the Netherlands, France and Denmark with its successful “Pink or Blue” online concept and is furthermore operating its first stationary business in Duisburg. The product range from Plus.de allows customers to select from more than 170,000 items from the areas of living, household, sports and multimedia. In the garden segment, the independent online store GartenXXL.de recently had a successful start. Tengelmann Ventures GmbH has already been active for several years in acquiring shares in young, fast-growing companies under the motto “Funding your ideas”. Today, the company is among the most important start-up investors in Germany. At the end of the fiscal year, 20 investments from various e-business areas were included in the portfolio.

TREI Real Estate
At the start of 2012, the Tengelmann Group strategically restructured its real estate activities into TREI Real Estate. The German real estate portfolio with more than 150 properties was incorporated so that now all activities in this sector are combined under the umbrella of TREI Real Estate. TREI Real Estate currently owns and manages more than 500 retail, residential and office properties with a lease volume of more than 120 million euros. The properties are located in Germany, Poland, the Czech Republic, Slovakia, Hungary, Austria and Portugal. A core focus for TREI Real Estate is the development of retail parks (“Vendo Parks”). In the Czech Republic and Slovakia, four such retail parks have already been developed and opened.

Investments
All of the Tengelmann Group’s operations in North and South America are collectively run by Emil Capital Partners (ECP), which is a full subsidiary. ECP is likewise active in the area of venture capital, and defines its success in creating sustainable value and helping young companies increase their sales and profitability through the sharing of capital and know-how. The investment focus remains on start-ups in the retail and specialty food industries. Furthermore, the Tengelmann Group holds investments in stationary retail trade, which has likewise developed very positively: TEDi was able to further expand its excellent position as the 1-euro-discounter with 1,377 locations. In addition to Germany and Austria, the company is now active in three countries following the successful launch in Slovenia. In more than 4,100 branches, the discounter Netto offers its customers a select product range of fresh and convenience products and continues to expand the share of regional and organic products.

Outlook
“Following the positive trend of the past fiscal year, the view for 2013 is cautious optimism,” said Haub. A main reason for this is once again climate change. “You could say that sales were frozen through April and drowned in May!” With the extended cold snap through April with snow and ice, seasonal goods in the garden sector and spring textiles were slow movers. The catastrophic flood that affected a wide part of Bavaria and eastern Germany, Austria, the Czech Republic and Poland had massive consequences for the group. More than 80 branches were temporarily closed or damaged by the high waters. Sales losses also occurred in markets that could not be supplied due to the severe flooding.

Original source: Tengelmann Group