Rewe reports solid FY revenue growth | Progresiv
The Rewe Group has reported solid growth for its 2016 fiscal year, helped by improved performances both in Germany and abroad. 
For the year, revenue was up 5% to 54 billion euros, helped by a 2.1% to 39 billion euros in its home market and a 13.4% jump to 15 billion euros overseas.
The group’s domestic Full-Range Stores saw revenues grow by 3.9% (to 18.4 billion euros), with medium-sized independent Rewe retailers reporting a 10.1% increase. Meanwhile, the International Full-Range Stores saw their revenues grow by 4.4% (to 8.5 billion euros) on a constant-currency basis. Rewe’s Penny discount banner had a solid year, with domestic sales up 2.3% to 7.2bn and international sales up 4.1% to 4.2 billion euros.
The one area to record a decline was the domestic Specialist Stores unit, which saw revenues dip by 1.5% to 2.1 billion euros.
CFO Christian Mielsch commented: “Due to our strong earnings position, high equity and very low debt, we are well equipped for the challenges ahead.” The group plans to invest more than €1.7bn in the 2017 fiscal year, with digitalisation and the development of the omni-channel model being a key focus.
Outgoing CEO Alain Caparros added: “The dispute over the takeover of Kaiser’s Tengelmann has shown that there are hardly any opportunities for major takeovers in the food retail sector in Germany. We must therefore concentrate on organic expansion and qualitative growth in the form of relocations and comprehensive modernisations to increase area output. And it also means that we will consistently continue to take opportunities to grow our foreign operations, where presented to us.” (www.kamcity.com)
