REWE Group: On Growth Course in Russia

Vienna Neudorf/Cologne, 20.05.09

A growth of more the 35 per cent in 2008 strengthens the plans for organic expansion on the Russian market: this year, 20 new locations will be added to the existing store base - Expansion focuses on central Russia - A staff of about 2,800 is currently employed at 58 Russian stores

"Despite the outstanding challenges due to the current economic situation, the business performance on the Russian market has been very successful. In 2004, we launched our supermarket concept in Russia; since then, we have achieved annual growth rates - accounted in euros - of between 30 and 40 per cent", said Frank Hensel, CEO of REWE International AG.

The expansion of the supermarket store base primarily takes place in central Russia with Moscow and the surroundings of the Russian capital being on focus of the activities. New locations will be also opened in the Central Blackearth Region (Voronezh, Lipezk, Belgorod, Kursk), in the Nizhny Novgorod region (Nizhny Novogorod, Dzerzhinsk, Arsamas), in the Vladimir region and in Bryansk. "The 20 new locations complement our existing store base of 49 supermarkets, which are primarily situated in Moscow. In the Russian capital we are meanwhile the number three in the supermarket segment. Two stores are currently being run both in Tula and in Voronezh, and five in Kursk", said Janusz Kulik, member of the Management Board of REWE International AG and in charge of the operative business in the CEE countries (Eastern Europe).

The course of growth will also lead to an increase in the number of employees: while currently about 2,800 employees are working for REWE Group in Russia, their number will be increased by another 800 by the end of the year. In 2007, the company achieved a turnover of EUR 210 million (RUB 7,300 million), whereas in 2008 a growth rate of 35 per cent (= growth rate expressed in EUR, equivalent to a growth rate in RUB of 40 per cent). The detailed business figures for 2008 will be published in the consolidated balance sheet at the beginning of June.

Dynamic growth thanks to supermarket concept with focus on freshness and quality

Besides offering basic foods and brand products at favourable prices, the supermarkets of REWE Group distinguish themselves also on the Russian market by a high service level. Moreover, the sales concept is backed by the high quality of the fresh food departments, which is a clear focus in the supermarket concept in the CEE countries. The dedicated further development of the store concepts along with innovative communication activities have enabled REWE Group in the CEE area to achieve an extraordinarily good market position: In the Czech Republic and in Slovakia, BILLA is the leader in the supermarket segment, in Bulgaria, Croatia, Poland, Romania and the Ukraine, BILLA meanwhile is among the top three players.

Contact

REWE GROUP-Corporate Communications
Tel.: 0221 - 149-1050
E-Mail: presse(at)rewe-group.com

Contact