Tengelmann results 2014

Date : 16 July 2015

German retailer, Tengelmann has reported full year sales of €8.1bn, up 5.8% from 2013, driven by its non-food banners.

Disappointing sales for grocery banner Kaiser

Despite the company having strong overall growth of 5.8%, Tengelmann's Kaiser, the company's grocery banner reported a drop of 4% in sales, down to€1.862bn. However the story is more positive for the non-food banners. OBI, the home improvement chain which operates in eight European countries, saw sales grow by a currency adjusted 9.8%, to €4.3bn. KiK, the clothing chain, which operates in nine European countries, reported sales growth of 7.5%, to €1.68bn.

Tengelmann eager to sell Kaiser

In November 2014, it was announced that Edeka, Germany's grocery market leader, planned to purchased 451 Kaiser supermarkets from Tengelmann. However, in April 2015, the competition commission ruled against the acquisition as it was judged that the move would considerably worsen competition in large numbers of highly concentrated regional markets, limiting choice for consumers. Tengelmann's Financial officer, Alfried Buhrdel, said that the Kaiser Tengelmann supermarket business "Has been a considerable burden on the Tengelmann Group for more than 15 years," adding that the sale of the Kaiser business is unavoidable.

Migros has entered the bidding for some Kaiser stores

Following the block on Edeka buying the business by the German regulator, the grocery market leader in Switzerland, Migros, has announced it is interested in 130 Kaiser stores in Bavaria, as part of its strategic plan to expand further in Germany. In 2012, Migros acquired the Tegut banner, giving it a presence of around 300 stores in Germany and any Tengelmann stores purchased would be converted to Tegut.