ANNUAL REPORT 2004 - REWE Group

18
transition, Rewe is increasing synergy
effects, such as those found in
IT or logistics, so that customers
can reap the benefits in the form of
better value for the money when
they shop at our stores. The acquisition of 119 Extra locations
from Metro Group has given a further boost to
Rewe and miniMAL in Germany. Around two thirds of
the modern, future-ready locations were taken up by
independent Rewe retailers, while the rest were converted
to the miniMAL brand.
The newly founded Karstadt Feinkost GmbH & Co. KG,
run from the food departments in 70 Karstadt department
stores since January 1, 2005, has also made headway.
Rewe holds a 25.1 per cent stake in this Cologne-based
company (Karstadt holds 74.9 per cent). With a retail
turnover of roughly 500 million euros, the firm benefits
additionally from the procurement volumes at Rewe. Under
the leadership of Rewe managers, central structures
were created for the product range, merchandise management,
IT systems and for cash register systems. Karstadt
Feinkost GmbH, with 100 million euros of equity capital
at its disposal, will modernise all food departments by
2007. The firm is expected to produce positive results in
the coming year.
Competition in Austria has become tougher. The
onslaught of discount stores into the market is making it
look increasingly similar to the German market. It is thus
all the more impressive that the 1,853 stores increased
turnover by 0.2 per cent to 4.4 billion euros. Beyond its
Austrian market, Rewe is expanding at a disproportional
rate in Eastern and Southern Europe. The 210 Billa supermarkets
recorded a rise in turnover in these countries
of nine per cent to one billion euros.
The discount store boom in Europe continues unabated.
Rewe is also participating in this trend with growth
rates well above the average. The 2,966 Penny outlets
in Germany, the Czech Republic, France, Austria, Italy,
and Hungary, the XXL stores in Romania, and the
PickPay brand discounters (Switzerland) together earned
a turnover of 8.4 billion euros. This corresponds to an increase
of 6.9 per cent.