Good year for Tengelmann boosted by international growth
Portugal, and good performances from non-food subsidiaries KiK and
OBI, helped Germany's Tengelmann group to a solid increase in sales
for 2002, despite difficult economic conditions in much of Europe.
The Plus and Kaiser fascias of Germany's Tengelmann group were the main drivers of growth in a good year for the retail group, in particular on international markets.
"Our international growth targets were not only reached, they were exceeded," said chairman Erivan W. Haub, adding that the Plus, OBI and KiK units showed the best growth rates during the year. Haub said that turnover for the year was up 7.3 per cent to €28.5 billion, with some €15.9 billion of that coming from the international business - or 56 per cent, some 1.3 per cent more than in 2001. The group had more than 7,000 stores at the end of the year and employed more than 180,000 workers.
The economic conditions were still difficult, especially in Germany but also in the rest of the EU, and in fact showed a decline compared to the previous year. The introduction of the euro at the start of 2002, and a number of food safety scares in Germany, led to uncertainty among some consumers, with a resulting flag in sales.
The company said that the euro's teething problems were now over and that consumer spending was back on track. Tengelmann is also working hard to ensure that all the food it sells is produced to very highest safety standards, Haub added.
The European rollout of the Plus fascia last year was extremely successful, with the number of stores increasing from 788 to 858. Spain showed the biggest growth rate, with 25 new stores opening under the Plus Supermercados fascia there. Portugal saw 15 new Plus stores, while there was also growth in Germany, where sales of organic own label products and the Internet shopping portal contributed to the highest sales for may years from the Plus fascia at €15.67 billion (up 5.7 per cent).
In addition to Plus, Tengelmann operates the OBI DIY chain, the A&P supermarket group in the US, the non-food discount chain KiK, the Kaiser supermarket chain (which it also expanded into the pharmacy sector during the year), and the Wissoll confectionery retailer.
