German grocery retail group Tengelmann has reported a 2.6 per cent increase in turnover for its 2009 financial year compared with the same period a year before, in spite of what it described as recession-related “pressure” in several of its markets.
The group, which operates a network of 4,519 stores in 16 European countries as well as the US, recorded sales totaling €11.34bn for the year, which its managing partner, Karl-Erivan Haub, said reflected a growth in sales and profits.
In a statement, Mr Haub said the group was “focusing on sound commercial virtues and organic growth” generated by its own resources, adding that it was also “taking advantage of specific acquisition opportunities”.
Tengelmann, whose divisions include Kaiser’s Tengelmann, KiK, OBI and Tengelmann E-Commerce, said that its German subsidiaries developed better than the foreign subsidiaries during 2009, which “suffered more” from the global economic crisis.
With a workforce of 20,959 employed at 660 branches, the supermarkets operated by the group’s Kaiser’s Tengelmann division managed to equal their previous year’s results, generating sales of €2.58bn.
However, Mr Haub admitted that Tengelmann had “not yet overcome” challenges in the business, adding that the sale of branches in the Rhine-Main region was “part of an extensive project to restore Kaiser’s Tengelmann’s strong foundation”.
The Tengelmann Group also remains the largest individual shareholder in the North American supermarket chain The Great Atlantic and Pacific Tea Company, Inc., (A&P).
With its 433 markets, Tengelmann said the company continued to maintain its position in its core regions of New York, New Jersey and Philadelphia during the year.
However, the group said that the US retail sector remained “constantly under pressure” as a result of the global economic crisis, underlining recent press reports that A&P plans to close 25 stores as part of a plan aimed at restoring profitability to the business.
Tengelmann continues to hold a 15 per cent stake in discounter Netto after selling its Plus subsidiary to the company in 2009, while it is currently awaiting approval from authorities in Romania and Bulgaria for the sale of Plus branches in the countries.
