ANNUAL REPORT 2004 - REWE Group

8
As to the question of whether to run a store as a chain
outlet or to have it run by an independent Rewe retailer,
we firmly believe in the paradigm of personal
responsibility. We can best realise the highest degree of
service quality and direct contact with customers from
locations where employees share a sense of entrepreneurial
thought and action. This works best with committed,
directly employed store managers, but even more with independent
retailers. To what extent the store formats can
or will be evened out is not a question of ideology. The
only yardstick is the qualification of the independent retailer
or of the store manager along with the advantages
of the specific location.
Rewe Group is increasingly generating growth
through strategic partnerships. We can point to the
Dohle Group's move from Markant to Rewe as a case in
point. The same holds true with the cooperation with dm,
the market leader for specialised drugstores. Both will
cooperate closely with Rewe in purchasing and central
settlements, thus contributing to strengthening our position
on the national and international procurement
markets.
In 2004, Rewe also entered into another cooperative
deal with Karstadt, where Rewe will run joint foods
departments in 70 department stores under the Karstadt
Feinkost GmbH venture. The move helps Karstadt improve
its own profile in an important department store
segment, with Rewe contributing its expertise in food
retail and wholesale.
We have been working hard to improve the efficiency
of our processes for years. Our organisational
structure must become more efficient in several areas.
Distribution of expertise, levels of hierarchy, responsibility
and decision-taking authority along with access to
information require regular close inspection. The organisational
maxims at Rewe have to be in line with decisions
taken at places where the expertise for taking them resides.
The new Management Board at Rewe has organised
itself to ensure clear structures and responsibilities by
creating the offices of CEO, central services, domestic
affairs, and international affairs. Projects on strategic
planning, variable remuneration, process optimisation in
purchasing and sales, human resource development,
leadership, and branding were already launched.
Anyone who is to bear responsibility for his or her
actions and decisions has to know the framework in
which these actions and decisions occur. We will create
more transparency for each employee in this area.
The company's senior management at all levels and in all
areas of Rewe will spare no effort to explain and argue
for the defined aims. Responsible action, transparency,
clear job duties and expertise are the foundations of our
leadership work.
There can be no doubt that Rewe Group is well
prepared. Despite all our successes, we have continuously
striven to optimise all areas of the company for years.
We will continue to pursue this course - and we will
even accelerate the pace of change. The market requires
it; our organisation and its people are ready to face this
challenge.