Denn’s: increase in turnover of more than 30 percent in 2015
by Redaktion (comments: 0)
At the end of February German retailer denn’s Biomarkt GmbH presented its end-of-year results for 2015. They show that the Dennree subsidiary generated turnover of nearly 305 million euros with its then total of 217 stores. This equates to an increase in turnover of 30.7 percent compared with 2014. However, its liabilities to affiliated enterprises rose from 55 to 63 million euros.
denn’s results for the year more than doubled to around 3.2 million euros, which was an increase of nearly 1.8 million euros compared with the year before. “We met the increasing pressure on our financial situation created by price adjustments for competitive reasons by focusing sharply on avoiding losses through spoilage. The management report states that this enabled them to keep the gross returns margin, one of the most important financial indicators in trade, at a correspondingly high level.
Rate of return at store level
The report also states that the company is managed basically from the viewpoint of the rate of return at store level. A multi-variable performance-related bonus system is in place for store managers. All locations must have been a success with customers because, according to the report, there were no stores closures. “Discerning consumers prefer the authenticity of the specialist trade to the aggressive price policy of the discounters. The very good growth registered by our established branches is for us confirmation that end consumers are increasingly pleased with our stores.”
The parent company dennree GmbH raised its turnover in the same period by approximately 15 percent to 666 million euros. Their annual result was a plus of around 2 million to 28.6 million euros. “With denn´s Biomarkt GmbH dennree GmbH is occupying a major segment in the modern food trade. This means we're securing the sales channels, and the market position of the whole dennree group is being stabilised. This improvement in market position is, however, accompanied by a greater awareness of the segment on the part of competitors in the organic and conventional trade and therefore by an intensification of competition. This fact will be a major focus of our attention in the future,” is a statement by the parent company in the annual report.
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