EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Fax: +49 208-581-302
www.tengelmann.de
Total 2009 Turnover:$15.7 Billion (€ 11.3 Billion) +2.6%; Turnover in Germany: $10.4 Billion (€
7.5 Billion)
Percentage of Sales in Exclusive Brands: 12% (E)
Principal Business: Tengelmann Group, founded 1867, now oversees some 4,519 stores, including
3,427 in Germany and the balance of stores in 15 other European countries. Its business divides
into three main areas. The Kaiser’s Tengelmann supermarkets consisting of 660 stores in
Germany, generating € 2.6 billion; the KIK textile discount chain of 2,887 stores (€ 1.6 billion
+7%), operating in Germany, Austria, Slovakia, Slovenia, the Czech Republic, and Hungary; and
the OBI chain of DIY stores, some 537 outlets (330 in Germany and the others in 12 European
countries), which together produce € 5.9 billion in sales +2.1%. Its majority interest in a number
of companies has recently been diminished to minority holdings (see profile below for most recent
examples). Tengelmann also has e-commerce interests as well as meat processing and bakery
facilities plus plant nurseries. Additionally, there is a printing and packaging facility.
EB Identities: A&P (Attractive & Price Worthy—covering some 250 good quality items at rockbottom
prices), Plus (100 items sold in Plus stores), Master Product (45 excellent quality products,
matching the top brands, but priced lower), Kaiser’s (coffee), Naturkind (natural/healthy
products), Birkenhof, Royal Comfort (paper and hygiene products), LeDi, Tengelmann, Ergee
(hosiery, Selilna Collection (teen apparel, Pokito (children’s apparel)
EB skus: N/A
Profile: When this database first appeared in its printed format, started early in the 1990s, it
reported on Tengelmann for fiscal 1993 as the world’s largest food retailer, generating some $28
billion in sales and operating more than 6,800 stores in nine countries. Fast forward 16 years to its
results in 2009 and you witness a humbling profile for this 142-year-old European industry icon
now overseeing some 4,519 stores in 16 European countries, its total sales at $15.7 billion. In the
recent past, Tengelmann has been forced to sell off its subsidiaries and retrench its operations.
Deals with different European retailers have loosened it control of operations both in Europe and
the United States. In January 2009, Netto Marken-Discount GmbH & Co. KG took over 2,300
Plus discount stores, leaving Tenglemann with only a 15% interest in that business. At year-end,
Netto reported its sales at € 9.9 from a total of 3,881 discount outlets. Tenglemann held onto about
435 Plus stores in Eastern Europe, but that business in Bulgaria and Romania was sold in February
2010 and in May 2010, the remaining subsidiary in Austria was sold. Tengelmann was also forced
to sell 65 Kaiser’s Tengelmann stores to Rewe of Germany. Tengelmann’s strength nevertheless
continues in Germany, where it operates the Kaiser’s Tengelmann chain of supermarkets, now
being converted to a more holistic strategy, including fresh foods and more services—called the
Black, Red, Gold concept. The company prides itself on their performance; despite no appreciable
sales gain over 2009, having weather the global economic crisis better than the Group’s foreign
subsidiaries. The KIK textile discount business shows sales up by 7% to € 1.6 billion for the year.
The OBI chain of 537 DIY stores added 24 new outlets for the year, producing sales of € 5.9