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the Adler Card, with which shoppers can purchase<br />
goods at reasonable prices in all Adler<br />
stores, having had ample time to make a selection<br />
at home from up-to-date fashion brochures.<br />
During the period under review, another seven<br />
stores in Chemnitz, Plauen, Dollgow, Eiche,<br />
Jena, Gera and Haibach (jeans store) were<br />
added; one store was relocated. At year-end<br />
Adler had 88 stores with 208,768 m² (up from<br />
81 with 191,444 m²).<br />
Adler achieves encouraging sales<br />
in a difficult submarket<br />
Against the background of continuing weak<br />
activity in the sector, the Fashion Centers sales<br />
were at a satisfactory level in general, improving<br />
by 4.0 percent from 1,363 million to DM<br />
1,417 million. In terms of comparable selling<br />
space, the Adler outlets achieved a sales rise<br />
of 1.0 percent, whereas division sales (Adler<br />
plus Mac Fash) receded by 0.2 percent altogether<br />
on a same-space basis.<br />
Profits adversely affected by nonrecurring<br />
Motex logistics expenditure<br />
The result from ordinary operations decreased<br />
clearly from DM 68 million to DM 28.2 million<br />
in 1996. Declining earnings are exclusively attributable<br />
to nonrecurring expenditure of DM<br />
42.0 million for the relocation of the distribution<br />
center to Thuringia. On an adjusted basis,<br />
Adler recorded a slightly higher pretax profit<br />
compared with the preceding year. Thanks to<br />
targeted optimization measures in goods purchasing,<br />
Adler enhanced the quality and fashionableness<br />
of its merchandise mix appreciably.<br />
This led to an improved gross profit.<br />
Adler prepares for the future<br />
<strong>METRO</strong> <strong>AG</strong><br />
Additional information<br />
During the period under review, Adler introduced<br />
an inventory optimization system. It monitors<br />
current stock on hand and initiates an<br />
order procedure with the supplier automatically<br />
if stocks run low, enabling Adler to reduce its<br />
out-of-stock rate and allowing product ranges<br />
to be adapted to current fashions or seasonal<br />
variations at short notice.<br />
In fiscal 1996, Adler Austria’s central purchasing<br />
organization was shifted to Germany, Austrian<br />
sales operations having been managed from<br />
there since 1995.<br />
Relocation of Motex logistics center to<br />
Thuringia<br />
In order to increase storage capacity and optimize<br />
the flow of goods, Adler laid the foundation<br />
stone in 1996 for the construction of a new<br />
logistics center in Thuringia to replace the current<br />
Grossostheim site. Building work started<br />
in December 1996, with capital expenditure expected<br />
to reach DM 130–140 million. Adler is<br />
thus creating the logistics environment for targeted<br />
extension of the network of sales outlets<br />
and for additional growth.<br />
In fiscal 1996, the division invested DM 27.8<br />
million in further widening of the branch network<br />
and in the relocation of Adler’s Motex<br />
warehouse to Thuringia.<br />
The Fashion Centers division’s number of<br />
employees, translated into full-timers, averaged<br />
5,588.<br />
49
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