METRO AG - METRO Group

In fiscal 1996, Kaufhalle AG opened branches
in Cologne’s Neusser Strasse and in the Billstedt
district of Hamburg. The branch in Berlin-
Weissensee was completely renovated, with its
selling space virtually doubled. The outlet in
Halle-Neustadt was also modernized.
Stores in Berlin/Frankfurter Tor, Dessau, Havelberg,
Neuruppin and Schönebeck were closed
in 1996 while those in Mainz and Cologne/Wiener
Platz were transferred to temporary premises
owing to the demolition of their buildings.
The new stores are due to be completed by
early or mid-1998.
Kaufhof Warenhaus Group’s pretax profit
well up
The Department Stores division achieved clear
earnings growth in 1996. The result from ordinary
operations soared by DM 108.6 million to
DM 202.6 million. Synergy projects generated
DM 16.7 million for the division.
METRO AG
Additional information
In particular, Kaufhof Warenhaus AG helped
to boost profits. The 1995 revamping and merger-related
expenses of DM 28 million incurred
through the integration of eastern German
Horten-Konsument Warenhaus GmbH and
Horten Thüringen GmbH into Kaufhof Warenhaus
AG, did not accrue in 1996, a period in
which the increased income also resulted from
an improved gross profit and savings in personnel
and impersonal expenses. This was
achieved mainly through consistent optimization
of administrative and logistics capacities related
to the advancing integration of the Horten
Group in the second year after takeover. At the
same time and as part of process chain streamlining,
Kaufhof logistics were largely transferred
to the Horten branches.
Kaufhalle AG’s result from ordinary operations
was unsatisfactory. The income position was
adversely affected by restructuring expenditure
in connection with the closedown/refurbishing
of individual outlets.
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