Tengelmann Group announces positive results Print

Mülheim an der Ruhr, August 26, 2010 – In the 143rd year of its existence the Tengelmann Group rounded off its 2009 financial year with sales totaling EUR 11.34 billion, representing an increase of 2.6 percent over the year before. The Group operated 4,519 branches and employed 84,516 staff. “The Tengelmann Group was not affected by the global economic crisis. We have recorded a growth in sales and profits and have high equity and further increased liquid funds,” explained Karl-Erivan W. Haub, managing and personally liable partner of the Tengelmann Group, at today’s press conference at the headquarters in Mülheim an der Ruhr. “We are focusing on sound commercial virtues and organic growth generated by our own resources, but we are also taking advantage of specific acquisition opportunities. As a result, our family business is independent of the financial market and is developing in a sustainable manner.”

The Tengelmann Group is represented in 16 European countries with its Kaiser’s Tengelmann, KiK, OBI and Tengelmann E-Commerce divisions as well as many smaller companies. In 2009, the German subsidiaries developed better than the foreign subsidiaries, which suffered more from the global economic crisis. However, times of crisis also offer unique opportunities: “For the first time we have made notable investments in acquisitions, mainly in market-leading Internet enterprises but also in stationary retail by acquiring stakes in Woolworth,” said Mr. Haub.

Kaiser’s Tengelmann

With a workforce of 20,959 employed at 660 branches, the supermarkets operated by Kaiser’s Tengelmann GmbH managed to equal their previous year’s results, generating sales of EUR 2.58 billion. The rolling conversion of branches to the new “Black, Red & Gold” concept was continued with greater emphasis. Kaiser’s Tengelmann will continue to consistently pursue freshness, service and especially customer orientation. “We have not yet mastered all of the challenges in our supermarkets. The sale of the branches in the Rhine-Main region is part of an extensive project to restore Kaiser’s Tengelmann’s strong foundation. In this segment it is vital to have a very good market position in the traditional markets,” continued Mr. Haub. “We are the market leaders in Berlin and Munich with Kaiser’s and Tengelmann.”

KiK

In the past financial year KiK has consolidated its position as the undisputed market leader in the textile discount segment and generated sales totaling EUR 1.63 billion, representing a further increase in sales of over 7 percent. The company operated 2,887 branches in Germany, Austria, Slovakia, Slovenia, the Czech Republic as well as Hungary and employed 18,129 staff. Since March 2009, KiK prioritizes its advertisement campaign with Verona Pooth and the slogan “KiK – besser als wie man denkt” (KiK – even better than you think). “Owing to KiK’s buoyant growth in the previous years we have unfortunately made some mistakes, which will be consistently adjusted,” said Mr. Haub. “My declared aim is that KiK sets an example, given its significance as market leader.”

OBI

OBI is represented with 537 outlets in Germany and twelve other European countries. Thanks to its comprehensive product range and the 37.663 staff skilled at advising customers, our DIY markets continued to expand their presence in most countries with a total of 24 new openings and added market share despite the global economic crisis. OBI generated sales totaling EUR 5.9 billion, representing an increase of 2.1 percent over the year before. “In 2009, there was a reversal in trend for the first time and the German OBI DIY stores developed significantly better than the foreign branches. With one exception: Sales of the 17 OBI DIY stores in Russia recorded significant growth despite the financial crisis,” said Mr. Haub with great pleasure.

 

E-Commerce

In 2001 Plus.de was the first Internet shop to be launched by a German food discounter and became an established online shop in the subsequent years. Today it is the basis for the new strategic online division under the heading of Tengelmann E-Commerce GmbH. The Group holds stakes in successful Internet enterprises via the Tengelmann E-Commerce Beteiligungs-GmbH. In the past financial year the Group acquired a participating interest of 10 percent in both Zalando GmbH, Germany’s greatest online shoe merchant, and brands4friends, Germany’s greatest online shopping club, followed by stakes in baby-markt.de (49.9 percent) and youtailor.de (10 percent) in 2010. Further acquisitions in this segment are envisaged.

TREI

As an expert in retail properties, TREI Real Estate GmbH is tasked with managing and letting a total of over 500 properties in Bulgaria, Austria, Poland, Portugal, Romania, the Czech Republic and Hungary for external clients. The principal tenants are the purchasers of the former Plus foreign subsidiaries. “In contrast to the rather high volatility in retail, the real estate business is an established force with a stable value,” said Mr. Haub. EUR 40 to 50 million will be invested in new retail properties annually.

Associated Companies

The Tengelmann Group also remains the largest individual shareholder in the North American supermarket chain The Great Atlantic and Pacific Tea Company, Inc., (A&P). With its 433 markets the company continued to maintain its position in the core regions New York, New Jersey and Philadelphia. On the other hand, the American retail sector is constantly under pressure as a result of the global economic crisis. In January 2009 Netto Marken-Discount GmbH & Co. KG took over around 2,300 Plus stores. Since then the Tengelmann Group holds a stake of 15 percent in the company. According to its own statements, Netto generated sales totaling EUR 9.9 billion with 3,881 outlets in 2009. TEDi continued to expand its position among the 1-euro discounters and generated sales totaling EUR 239.9 million in the previous financial year (May 2008 to April 2009). The company operated 946 outlets and employed 6,384 staff. The 1,000th TEDi branch was opened in May 2010.

The Tengelmann Group shortly expects an approval from the national antitrust authorities for the Plus stores sold in Romania and Bulgaria in spring after Brussels referred the decision back to them.

For over 42 years the Tengelmann Group has been an environmental pioneer. In spring 2008, Karl-Erivan W. Haub initiated the Tengelmann climate initiative. The Group has set itself the goal of living up to the Kyoto Protocol and reducing its CO2 output by at least 20 percent by the year 2020. The progress in this segment is documented in the annual emission balance sheet for the holding and all divisions in Germany and Europe. The current climate protection report published the results from 2008 and 2009. The gratifying result: A CO2 reduction of 16.2 percent has already been recorded, owing in particular to the changeover to certified eco-friendly electricity. “I am very pleased that the Tengelmann climate initiative is supported by measures taken by the divisions. More and more stores, especially KiK and TEDi, are being awarded the GreenBuilding certificate. We will continue to pursue this development further,” said Karl-Erivan W. Haub.