German retailer Edeka has indicated that it is going on the attack in the discount sector with the planned opening of 1,000 Netto outlets in Germany.
Edeka is aiming to increase its number of Netto branches from the 4,000 it operates in the market to around 5,000 over the “next few years”, a spokesperson for the group confirmed today (28 April).
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In 2008, Edeka more than doubled its Netto store count with the acquisition of 2,300 Plus outlets from Tengelmann. The company intends to continue expanding its Netto footprint through new store openings in regions where it remains “under-represented”, the spokesperson revealed.
During the coming 12 months, the company expects to open around 250 stores.
“We are very focused on driving growth across our formats and this is true to the Netto banner. We are making various investments in marketing and pricing as well as store openings,” the spokesperson said.
Delivering its full-year results yesterday, the grocery retailer said that group revenue grew by 3.9% to EUR39.1bn (US$57.9bn) – outstripping growth of the overall market which, according to market researchers GfK, stood at just 1.2% for the year.
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By GlobalDataSales gains were driven by the strong performance of the company’s flagship Edeka supermarkets, which saw same-store sales increase by 4.6% in the 12-month period. The company expanded its Edeka store count by 186 outlets during the fiscal. Netto revenue rose 4.3% to EUR10.4bn.
Profit before interest and taxes (EBIT) rose from EUR714m to EUR868m, the company added.
Looking to 2011, Edeka predicted sales growth of around 3%.
