EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

EB skus: N/A
Profile: Schlecker, which began in 1975 has, since 1987, expanded outside of Germany. The
company is now expanding its own brand stock, under the AS brand, to represent 15% of total
sales. This includes development of other exclusive brands as part of its 4,000+ product lines. The
company, owned by German billionaire Anton Schlecker, has recently run into labor union
problems and wage disputes. Also, the chain of stores that range from 130 to 200 square meters
has begun closing the smaller outlets (some 800 in 2009) and concentrated on its larger units. This
business has suffered declining revenues and no profits over the past two year, forcing the closure
of some 1,000+ stores. In January 2012, after failing to secure bridge financing, Schlecker filed for
insolvency, giving it about three months more to restructure its business. UPDATE: In retrospect,
Schlecker’s 37 year history traces an impressive growth to some 14,000 stores by 2008--making it
Europe’s largest drugstore chain. That growth rate, some observers believe, was too rapid, pushing
the chain into small, unprofitable markets, including some in East Germany. Facing insolvency,
the Group in 2012 failed to secure a buyer, forcing it in June 2012 to close some 2,000 store in
Germany, placing tens of thousands of employees out of work. A number of stores were sold to
competitors, including Rossman (also in this database) picking up 104 outlets. In May 2012, 145
Schlecker stores in the Czech Republic were sold to p.k. Solvent, operator of 700 TETA
drugstores plus an additional 200 in Slovak and a wholesale business, supplying 5,500 other
stores. The Czech Schlecker stores will be re-branded as TETA, giving that business a total 20%
market share in the country. In August 2012, the company’s subsidiary, Schlecker Austria was
acquired by the Austrian investment group, TAP 09. Its plans reportedly call for keeping some
1,350 stores open in Austria, Poland, Italy, Belgium, and Luxembourg, while broadening the
product mix to include more grocery items. Reports are that the store will be renamed “Daily,”
positioned as a local grocer. Schlecker's other stores slowly are being gobbled up by other
retailers: Rossman of Germany (104 sores), MTH Retail Group (109 stores), etc.
Procurement Contacts: N/A
FAMILY DOLLAR, INC.
10401 Monroe Rd., Matthews, NC 28105 USA
Tel: (704) 847-6961
Fax: (704) 849-2044
www.familydollar.com
Total Fiscal 2012 Sales: $9.3 Billion +9.2%
Percentage of Sales in Exclusive Brands: 25%