A PRESENTATION BYYUSUF A . AND SEBASTIAN E.

Food retail sector in Brandenburg a.d.H. from

2005-2011

Summary

1. Brandenburg – short overview2. Brandenburg – retail industry3. Brandenburg – retail food industry4. Brandenburg – future developments of retail

industry5. Literature6. Thanks

Brandenburg – short overview

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Brandenburg – short overview

Catchment area of the retail trade market in Brandenburg

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Brandenburg – short overview

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Population in Brandenburg 2010

Brandenburg – short overview

region area 228,8 sqkminhabitants 71.778 ( as of Dec 2010 )density of population 314 people per sqkmTypical economy in Brandenburg:

Steel industry with „Elektrostahlwerk“ of the Riva Company

„Heidelberg Druckmaschinenbau AG“ Energy Supply through „Stadtwerke Brandenburg“ Food retail industry

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Brandenburg – short overview

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GDP per Head in Brandenburg a.d.H in 2003 in Euro

Brandenburg – short overview

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GDP in Mio Euro in the country of Brandenburg covering 2000 - 2009

Brandenburg – short overview

Some facts about the GDP in Brandenburg: From 1998-2003 Brandenburg increases the GPD only

by 2 % while the countrys average was 9% It took the 5th place of GDP / head from all regions in

the country of Brandenburg This bad ranking is resulted in a job losses in the core

industry which degrades Brandenburg as regional working centre

This weakening of course influenced the employement and the commuting ratio (=Pendlerquote)

By increasing the service industry and retail industry Brandenburg could adjust the loss in the construction industry

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Brandenburg – retail industry

Statistics say that in 2010 every people of Brandenburg has a retail trade buying power of 5.320 Euro to spend

From this buget 66% (3.510€) go to the non-food market and 1810€ (34%) to the food industry

Buying power indicator is 89,7(2010) and therefor 10,3 % below germanys average

When looking at the population of about 72,000 Brandenburg as a relevant market buying power of 342,6 Mio. Euro

That makes about 116,5 Mio. Euro for the food industry

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Brandenburg – retail industry

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Retail Market relevant buying power for different groups of goods in Brandenburg a.d.H in 2010

Brandenburg – retail industry

Selling space development in the retail market in Brandenburg from 1980-2010

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Brandenburg – retail industry

In Brandenburg we have the following retail industry markets: 3 self service market places 4 supermarkets 5 retail food markets 8 clothing shops 1 company that sells toys 2 electrical related businesses 9 furniture shops 8 self construction markets

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Retail Food Market in Germany

Rang Company sales volume 2008 in Mio. Eur

sales volume 2007 in Mio. Eur

Number of branches 2008

Number of branches 2007

1 Aldi 24.500 23.398 4.267 4.235

2 Lidl 14.725 14.280 3.036 2.902

3 Penny 6.798 6.337 2.080 2.008

4 Plus 6.734 6.997 2.700 2.766

5 Netto 5.850 4.025 1.422 1.279

6 Norma 3.000 2.925 1.355 1.316

Sales volume of the 6 biggest retail food companys in germany in 2008/2007

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Brandenburg – retail food market

The big retail food market in Brandenburg an der Havel :

1. ALDI-Markt/Sud2. LiDL3. PENNY Markt4. Plus5. Netto6. NORMA

Brandenburg – Retail Food Market

Type : German multi-national Industry : Retail (grocery) Founded : 1961 Key people and Headquarters : Theo Albrecht, Aldi Nord in Essen Germany Karl Albrecht, Aldi Süd in Mülheim an der Ruhr Products : Mainly own branded, few larger brands Revenue : US$ 58 billion (2008) according to

Deloitte Website : www.aldi.com

Number of branches in Brandenburg a.d.H : 3

Type : German multi-national Industry : Retail (Grocery) Founded : 1930s Headquarters : Neckarsulm, Germany Chairman : Klaus Gehrig Products : Mainly own brand, with a few larger

and regional brands Revenue : € 42 billion (2010)[1] Website : www.lidl-info.com Number of branches in Brandenburg a.d.H : 3

Brandenburg – Retail Food Market

Brandenburg – retail food market

Type : Subsidiary of REWE-Zentral AGIndustry : RetailFounded : 1973Headquarters : Cologne, GermanyManaging Director : Alain CaparrosProducts : Discount storesRevenue : €8,7 billion (2006)Website : www.penny.deNumber of branches in Brandenburg : 1

Brandenburg – retail food market

Type : GmbHIndustry : Food retailingFounded : 1972Headquarters : Mülheim an der Ruhr,

GermanyKey people : Michael HürterRevenue : € 10 bn (2006)Website : www.plus-online.de

Number of branches in Brandenburg : 1

Type : AG & Co. KG Industry : Food retailing Founded : 1928 Head Quarter : Maxhütte-Haidhof, South Germany Key people : Franz Pröls, Manfred Karl, Claus Leitl

& Martin Schnellinger

Employee : over 64,000 Revenue : approximately 10 billion € (2009) Website : www.netto-online.de

Number of branches in Brandenburg a.d.H : 6

Brandenburg – Retail Food Market

Brandenburg – Retail Food Market

Type : GmbH Industry : Retail (Grocery)Founded : 1960Headquarters : Nürnberg, GermanyProducts : Mainly own brand, with a few

larger and regional brandsRevenue : about 6 billion EuroWebsite : www.norma-online.de

Number of branches in Brandenburg a.d.H : 3Phone Number: 033830 658-0

Brandenburg –retail food market

The strong increase in the sales area combined with limited market volume share resulted in a loss of sales area productivity

This results in higer competition and showed a tendence to reduce working costs -> loss in service quality -> lots of small merchants had to quit

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Brandenburg – retail food market

The competitive constraints(=Wettbewerberdruck) follows a development of so called german food -„discounters“

The food retail market price war is the biggest here in germany when looking at other european countrys

Since 1990 the share of sales of the discounter in the food market has risen from 23,7% to 42,4% in 2007 For the future: it is still rising Biological food helped the discounter to get new customers

The loss goes to the field of small self food stores and supermarkets

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Brandenburg – retail food market

Share of sales in the retail food industry from 1991 – 2007 in %

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Brandenburg – retail food market

Developement of Sales area in Brandenburg from 2007/2011

Increase results in new shops of Netto Marken Discount, Netto Supermarket,Rewe in Sankt Annen Galerie And a retail shop for drinks

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Brandenburg – retail food market

Buying power related to group of goods in Mio. Euro

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Brandenburg – retail food market

Buying power related to group of goods in 2011

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Brandenburg - future

Scenario A: decrease of population (-14%), constant market share Scenario B: decrease of population (-10%), slightly increasing market share

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Brandenburg - future

Predicted population of 67,000 in 2020 in Brandenburg a.d.H.would result in a buying power of about 356 Mio EuroAnd 121 Mio. Euro for the retail food industry – based on current calculations from this presentation

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Literature

Quelle 1 - http://www.lbv.brandenburg.de/dateien/stadt_wohnen/Stadt_BRB.pdf Quelle 2 - http://de.wikipedia.org/wiki/Brandenburg_an_der_Havel Quelle 3 -

http://www.stadt-brandenburg.de/fileadmin/pdf/80/Allgemeines/Brandenburg_adH_EHK_110718.pdf

Quelle 4 - http://www.statistik-berlin-brandenburg.de/Publikationen/Stat_Berichte/2011/SB_P1-5_j01-09_BB.pdf

Quelle 5 - http://www.stadt-brandenburg.de/fileadmin/pdf/63/Stadtentwicklung/Fortschreibung_Masterplan_2011/Anlagen/05_Bevoelkerung_07-06-2011.pdf

Quelle 6 - http://www.statistik-berlin-brandenburg.de/produkte/zeitschrift/2008/HZS_0806.pdf

Quelle 7 - http://de.wikipedia.org/wiki/Lebensmitteleinzelhandel Quelle 8 - http://en.wikipedia.org/wiki/Plus_(supermarket) Quelle 9- http://de.wikipedia.org/wiki/Lebensmitteleinzelhandel

Thanks for watching