fd~industry analysis - retail

8/3/2019 FD~Industry Analysis - Retail

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MARKET OVERVIEW

Third largest industry sector after manufacturing and

skilled trades and crafts sector.

Number of Companies: 410,000.

Employees: 2.7 million.

Annual Turnover: 380 billion .

Potential Customers: 82 million.

Annual Growth Rate: 2.4%.

Source: www.fxstreet.com2GERMAN RETAIL INDUSTRY


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CONSUMER BASE

Number ofPotential Customers: 82 million.

Needs

Consumers want almost perfect information access

about products and pricing. If consumers cant find what they want, they will move

on to the next retail outlet.

3GERMAN RETAIL INDUSTRY


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Buying Behavior

German consumer is selective Tough time

for B- Brands and C-Brands.



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CURRENT MARKET CONDITION

Manufacturers are taking control of distribution channels.

(Forward Integration).

The concentration process in the German retail industryhas led to standardization and more sales space.

Standardization leads to economies of scale, making

retail more eff icient. In Germany, smaller and medium-

sized retailers are coming under pressure.

Source: www.consumer-products-germany.com



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COMPETITION

Global Players in Germany

Carrefour (France)

Hennes & Mauritz (Sweden)

Tesco plc (UK)

Source: Wikipedia



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,sales figures, compared toother top retailorganizations

worldwide.

3 Metro AG

Cash & Carry Warehouse Club5 Schwarz Unternehmens

Discount Store

9 Aldi GmbH & Company oHG

Discount Store

11 Rewe-Zentral AG

Supermarket19 Edek a Zentrale AG & Company KG

Supermarket

58 Tengelmann Warenhandelgesellschaft

KG

Home Improvement

70 Otto (GmbH & Co KG)

Mail Order71 Arcandor AG

Department Stores/Teleshopping

89 Fa. Anton Schlecker

Drug Store/ Pharmacy

99 C&A Europe

Apparel/Footwear

132 Globus Holding GmbH & Company KG

Hypermarket/Supermarket135 Dm-drogerle markt GmbH + Company

KG

Drug Store/Pharmacy

147 Praktiker Bau- and Helmwerkermarkte

Home Improvement

150 Dirk Rossmann GmbHDrug Store/Pharmacy

158 Celeslo AG

Drug Store/Pharmacy

163 Norma Lebensmittelfillialbetrieb, GmbH

Discount Store

170 Douglas Holding AG

Specialty180 Delchmann Group

Apparel/Footwear Specialty

188 Bauhaus GmbH # Company KG

Home Improvement

206 HORNBACK+Baumarkt-AG Group

Home Improvement 8GERMAN RETAIL INDUSTRY


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Provision and potential for retail-surface

per 1,000 inhabitant percounty



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Shift in RetailMarket Share



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ENTRY BARRIERS

Retail trade is subject to substantial regulation in

European countries.

Local governments decide store opening hours (opening

hours per day and opening time interval), whether shops

can be opened all week and at night, the maximum

number of sales days and so on.



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KEY SUCCESS FACTORS

Focus on margins when gross profit.

Focus on payroll cost when productivity of staff will

achieve the same cost ratio plus increased sales.

Focus on a broad assortment when productivity of space

is more important.

Focus on margins to achieve ROI when turnover is more

important.



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RECOMMENDATIONS

1. Broad, undifferentiated assortments hardly stand a chance.

2. Future sales staff competence should be in events.

3. Bringing consumers together.

4. Enabling consumers.

5. A challenging time for mass producers.

Source: www.consumer-products-germany.com



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THANK YOU


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