ANNUAL REPORT 2004 - REWE Group

32
The Growth Engine is Racing.
Foreign activities, in particular in the quickly growing
markets of Eastern Europe, are the growth engine of
Rewe. Thanks to the mature portfolio of sales brands and
concepts, the Group is well able to orient each sales type
to meet the special needs of each country. This is the
foundation of our business success. Total turnover from
our foreign activities rose from 10.01 billion euros by 13
per cent to 11.31 billion. Outside Germany, Rewe is
represented in 13 other European countries with a total
of 2,999 stores (up by 115). These operations employ
65,192 workers (up by 3, 054), an increase of 4.9 per
cent. Over the past fiscal year, the share of foreign business
in Rewe's total turnover increased to 28 per cent. Its
contribution to the results was even greater.
The largest foreign subsidiary of the firm is Rewe Austria
with a turnover of 6.9 billion euros. This was
achieved by 40,500 employees in 2,394 stores throughout
Europe. At 8.7 billion euros (up by 13.8 per cent), most
of the turnover is earned in the four Western European
countries of France, Switzerland, Italy and Austria. The
alpine republic of Austria itself is the largest foreign market
of the Group with a turnover of 4.4 billion euros (up
by 0.2 per cent). In Austria, Rewe operates 1,853 stores
(Billa, Merkur, Mondo/Penny, Bipa), 59 more than in the
preceding year. The total employment figure rose by 300
to 24,600. Rewe is also the leader in the drugstore market,
where its 513 Bipa drugstores increased turnover by
3.2 per cent. With the opening of the first two Bipa drugstores
in Italy, this highly successful concept has undergone
its first test outside its Austrian home market.
The transition of the Mondo discount store chain to the
international Penny concept went very well. By the end of
2005, all 288 Mondo stores will have been converted.
The stores operated under the Penny brand are quite
popular, even recording up to double-digit turnover
growth rates.
With four new store openings, the position of the Merkur
hypermarkets was systematically strengthened. These
large-scale hypermarkets are represented in Austria at
103 locations.
In Italy, the 345 Standa, Iperstanda, Billa, and Penny
stores increased their turnover by 0.7 per cent to 1.6
billion euros. The expansion of the Penny discount store
chain experienced particularly successful expansion into
southern Italy. The Standa supermarkets, modernised at
great expense, continued on course with their development.