Rewe retail group on course for expansion
With new record sales, 11.492 stores and 192.613 employees in 13 countries, the Rewe Group has maintained its leading position in German and European retail. "We are building on the peak increases of previous years, which were characterized by continuous growth in the German food trade and by significant acquisitions in other European countries, in DIY stores and in tourism," said Reischl. In the past ten years, Rewe has almost doubled its total sales from around 21 billion euros to almost 40 billion euros. "Sales and earnings far exceed the expectations we had for the 2003 financial year, despite all our optimism, given the difficult economic environment," said the chairman of the board of the cooperative retail and tourism group.
Increase in turnover in the German food trade and abroad
In the German food retail sector alone, the Rewe Group exceeded the sales threshold of 2003 billion euros in 20. Not only the Penny discount stores contributed to this with growth of almost seven percent on a like-for-like basis. The modern and promising supermarkets are developing extremely well. The miniMAL stores, which have been converted to the new concept, achieve sustainable sales increases of more than four percent on a comparable sales area. "The growth in sales compensated for the decline in tourism, which is due to the consequences of the Iraq war, the Sars lung disease in Asia and the poor economy," emphasized Reischl.
The takeover of the Swiss Bon appétit Group is the main reason for the increase in turnover of 1,8 billion euros of the total turnover, even if only half of its turnover has been consolidated. In addition, the supermarkets, discounters and cash & carry markets in twelve European countries, from France to Italy to Austria and from Poland to Hungary and the Czech Republic to Romania, have continued to develop positively as part of organic growth.
Of the total turnover in wholesale and retail of 39,2 billion euros, 29,2 billion euros or 74 percent are generated domestically and for the first time more than 10 billion euros (26 percent) abroad. In the food retail sector, the foreign share has already reached 29 percent.
Rewe's total retail sales in Europe rose by 650 million euros or 2,1 percent to 32,2 billion euros compared to the previous year. The number of stores increased by 296 to 11.492 retail stores. The total sales area is 8,9 billion square meters. The Rewe Group employs a total of 192.613 people, 5.417 or 2,9 percent more than a year earlier.
Number of jobs and trainees increased
While around 30.000 jobs were lost in German retail last year, Rewe remained one of the largest employers and training companies in Germany with 135.799 employees (+5). Due to the difficult situation on the apprenticeship market in 2003, the number of newly hired trainees increased again by 300 or 12,5 percent to 2.700. In Germany alone, 6.700 young people receive qualified vocational training at Rewe, and there are 8.150 in Europe.
"Without the capable employees in the stores, without our proven experts in information technology, in logistics, purchasing, organization or human resources development and without investment programs at the highest level, development to the next sales mark of 40 billion euros is inconceivable," admitted Rewe boss Reischl convinced. After an investment volume of around 700 million euros in the previous year, the group intends to invest one billion euros in the further development of its business at home and abroad in the current year. Investments are traditionally financed from cash flow.
Sales in the core food retail business increased by 6,6 percent
In its core food retail business, Rewe was able to increase its sales in Europe by two billion euros or 6,6 percent compared to the previous year. Of the 9.639 stores, 7.284 (+122) are operated in Germany.
The 3.310 stores of the independent Rewe retailers and the 3.974 grocery stores achieved sales of 23,1 billion euros in the particularly tough cut-throat competition. That was 230 million euros or one percent more than a year earlier. As part of the targeted restructuring of its sales networks, Rewe also closed stores in 2003 that were no longer up-to-date, mostly too small and no longer economically viable in the long term, and at the same time opened around 100 new stores that were fit for the future.
The sales line with the highest turnover is the 4.737 neighborhood shops and supermarkets with a sales area of up to 1.000 square meters. They achieved sales of 11,2 billion euros (minus one percent) in Europe. In Germany, sales losses due to the shrinking of smaller areas contrasted with the good development of independent Rewe supermarkets, especially in the Rewe partnership model, and modernized HL stores.
The discount wave in Germany and Europe is reflected in the far above-average growth of the Rewe discount division. The total of 3.000 Penny, Mondo, Pick Pay and XXL stores, around 100 more than a year earlier, increased sales by 8,7 percent to 7,9 billion euros. In Germany, the Penny discounter achieved a new record turnover at around 2.100 locations with 5,4 billion euros (+ 3,5 percent). On a like-for-like basis, the discounter grew by 6,6 percent.
The 1.200 hypermarkets and hypermarkets of the Rewe Group (miniMAL, Merkur, toom, Globus, Iperstanda, Rewe-Center) generated sales of eight billion euros, 2,6 percent more than a year earlier.
Foreign business remains the engine of growth
Rewe's growth driver in the 2003 financial year was foreign business. 56.814 employees in twelve countries in 2.884 stores (+ 236) generated sales of 10,01 billion euros. In Western Europe, sales increased by 2003 percent to EUR 28,3 billion, particularly as a result of the takeover of the Bon appétit Group in mid-7,6. Sales of 2,4 billion euros (+ 4,4 percent) were achieved in Central and Eastern Europe.
As a result of the Swiss acquisition, Rewe wholesale was able to boost sales by around two billion euros or 21,6 percent to 11,2 billion euros. The Rewe delivery wholesaler, which supplies the stores of independent retailers, has increased its turnover to 6,5 billion euros. The turnover of the Rewe bulk consumer service increased by 17 percent to 620 million euros.
| Rewe trading group | Actual 2003 | |
| 2003 | Change 2002/2003 | |
| Total sales Europe | 39,18 | + 4,68% |
| retail sales | 32,19 | + 2,06% |
| Wholesale sales | 11,20 | + 21,61% |
| Number of retail markets | 11.492 | + 2,64% |
| retail sales area | 8.866 | + 2,72% |
| number of employees | 192.613 | + 2,89% |
| Sales by business area | 2003 | Change 2002/2003 |
| Food retail (83%) | 32,54 | + 6,58% |
| thereof Germany | 23,12 | + 1,00% |
| thereof abroad | 9,42 | + 23,40% |
| Specialist stores (6,5%) | 2,48 | + 0,40% |
| Tourism (10,5%) | 4,06 | - 6,91% |
| Sales by region | 2003 | Change 2002/2003 |
| Germany (74%) | 29,16 | - 0,14% |
| Abroad (26%) | 10,01 | + 21,68% |
Source: Cologne [ rewe ]
