Rewe: Over ten billion euros in turnover from foreign activities for the first time

Cologne, 28.02.04

The proportion of foreign activities in food retailing rises to 29 per cent

The Cologne-based Rewe Distribution Group managed to take another large step towards internationalising the company. With an increase in turnover of 1.8 billion euros, or 21.7 per cent, the turnover mark of ten billion euros could be exceeded for the first time. Aside from healthy organic growth, it was above all the acquisition of the Swiss Bon appétit Group that contributed to this development after the turnover at the new Rewe member company was consolidated starting in July 2003. "The proportion of foreign business in food retailing at the Rewe Group rose to a total of 29 per cent last year," explained Rewe CEO Hans Reischl at Rewe's annual press conference on Ash Wednesday (February 25) in Cologne. Yet pure quantitative growth did not serve as a benchmark of Rewe's success: this was instead to be found in the company's solid business progress. Foreign growth would have to make a measurable contribution to the value-adding capabilities of the overall group within a reasonable timeframe, Reischl emphasised.

In Western Europe (excluding Germany), Rewe Group's 2,388 retail stores (+ 208) increased their turnover by 1.7 billion euros, or 28.3 per cent, to 7.6 billion. Rewe Austria, which operates the Billa, Merkur, Mondo, Emma, and Bipa branches in Austria – the largest foreign market for Rewe – increased its turnover by 4.7 per cent to a total net turnover of 4.3 billion euros. The 1,785 stores (+ 32) in the alpine republic employed 24,300 workers last year. A cooperation agreement with the leading independent food retailer in Austria, Sutterlüty based in Vorarlberg province, helped Rewe extend its leadership position in Austria once again.

Around a half a year after acquiring the Swiss Bon appétit Group, plans for the strategic realignment of the company and for its integration into Rewe Distribution Group were proceeding quite well.

In Italy, Rewe Group booked an increase in turnover of around seven per cent to over 1.6 billion euros. The Standa stores, most of which have now been modernised, are on a solid course. The large-scale Iperstanda hypermarkets and the Penny discounters grew at above-average rates, now expanding for the first time into Italy's Apulia region.

Growth in turnover in eight Eastern European companies was organic at 4.4 per cent, rising to 2.4 billion euros. In the countries where Rewe is active with its Billa brand – the Czech Republic, Slovakia, Romania, Bulgaria, and Croatia – the Distribution Group solidified its market position. The same held true for the discount stores in the Czech Republic, Hungary, and Romania, as for the Selgros Cash & Carry stores in Poland and Romania. The rate of return in Eastern Europe was entirely pleasing for 2003.

Overall, the number of retail stores outside Germany rose by a net of 236 stores to 2,884 in comparison to the previous year. The number of employees here rose by 10.5 per cent to 56,814. Rewe Group intends to continue its foreign expansion with renewed determination, adding another 100 brand-new sales outlets over the course of the current year. Almost half of these are to be in the discount segment (Penny, XXL, and Pick Pay).

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

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