Building better businesses - Permira

Investment
overview
Maxeda is the largest non-food retailer in the
Netherlands, with strong positions in both the DIY and
fashion markets. The group owns nine different brand
formats and operates 1,360 stores in seven European
countries. Maxeda’s DIY formats include Praxis and
Formido in the Netherlands and Brico and Plan-It in
Belgium. Maxeda’s fashion business includes leading
department store formats, such as DeBijenkorf, a luxury
department store chain in the Netherlands, and V&D,
a department store aimed at the mid-market, as well
as womenswear brand M&S Mode and the lingerie
brand Hunkemöller.
Despite a challenging retail environment
in 2009 the group showed a resilient
performance with only modest top line
declines. This compares favourably with
many European retail peers and direct
competitors in Maxeda’s local markets. In
addition, management maintained its strong
focus on cost and cash control, executing a
highly successful and comprehensive cost
saving programme across all formats and
markets without compromising the core
customer proposition of its retail formats.
The group made good progress during 2009
on its value creation plan. DeBijenkorf
continued to build further on its high-end
department store proposition by selected
store refits and assortment upgrades. It also
benefited from its unique market position in
the Netherlands and its well-invested asset
base. V&D made good progress on its
turnaround plan with two-thirds of the store
portfolio having undergone a remodelling
programme by the end of 2009. This supports
the ongoing repositioning of the format’s
branding and product portfolio. M&S
continues to benefit from its attractive niche
positioning, whilst Hunkemöller is benefiting
from a new and strong management
team. The disposal of two formats (the
underperforming Claudia Sträter brand and a
small local jewellery chain Schaap & Citroën)
has further allowed management to focus
on the core of the retail portfolio. The Belgian
DIY business continued to perform well with
stability in its core Brico format and very
attractive growth from the successful Plan-It
format. The Dutch DIY formats experienced
a more difficult consumer and competitive
environment and responded with strong cost
and cash control as well as a renewed focus
on commercial programmes supported by
a strengthened management team.
Whilst the outlook for consumer demand
remains challenging in 2010, the group’s
resilience in 2009 with its further strategic
progress leaves the group well positioned.
Permira Annual Review 2009 Our Portfolio 61