Presentation food Retail Sector in Brandenburg an der Havel, Germany 2005 - 2011

1. A P R E S E N T A T I O N B Y
Y U S U F A . A N D S E B A S T I A N E .
Food retail sector in Brandenburg
a.d.H. from 2005-2011

2. Summary
1. Brandenburg – short overview
2. Brandenburg – retail industry
3. Brandenburg – retail food industry
4. Brandenburg – future developments of retail
industry
5. Literature
6. Thanks

3. Brandenburg – short overview
Quelle 1

4. Brandenburg – short overview
Catchment area of the retail trade market in Brandenburg
Quelle 3

5. Brandenburg – short overview
Quelle 3
Population in Brandenburg 2010

6. Brandenburg – short overview
 region area 228,8 sqkm
 inhabitants 71.778 ( as of Dec 2010 )
 density of population 314 people per sqkm
 Typical economy in Brandenburg:
 Steel industry with „Elektrostahlwerk“ of the Riva Company
 „Heidelberg Druckmaschinenbau AG“
 Energy Supply through „Stadtwerke Brandenburg“
 Food retail industry
Quelle 2

7. Brandenburg – short overview
Quelle 1
GDP per Head in Brandenburg a.d.H in 2003 in Euro

8. Brandenburg – short overview
Quelle 4
GDP in Mio Euro in the country of Brandenburg covering 2000 - 2009

9. 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
Quelle 1

10. 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
Quelle 3

11. Brandenburg – retail industry
Quelle 3
Retail Market relevant buying power for different groups of goods in Brandenburg a.d.H in 2010

12. Brandenburg – retail industry
Selling space development in the retail market in Brandenburg from 1980-2010
Quelle 3

13. 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
Quelle 3

14. 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
Quelle 7

15. Brandenburg – retail food market
 The big retail food market in Brandenburg an der Havel :
1. ALDI-Markt/Sud
2. LiDL
3. PENNY Markt
4. Plus
5. Netto
6. NORMA

16. 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

17.  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

18. Brandenburg – retail food market
Type : Subsidiary of REWE-Zentral AG
Industry : Retail
Founded : 1973
Headquarters : Cologne, Germany
Managing Director : Alain Caparros
Products : Discount stores
Revenue : €8,7 billion (2006)
Website : www.penny.de
Number of branches in Brandenburg : 1

19. Brandenburg – retail food market
 Type : GmbH
 Industry : Food retailing
 Founded : 1972
 Headquarters : Mülheim an der Ruhr, Germany
 Key people : Michael Hürter
 Revenue : € 10 bn (2006)
 Website : www.plus-online.de
 Number of branches in Brandenburg : 1

20.  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

21. Brandenburg – Retail Food Market
 Type : GmbH
 Industry : Retail (Grocery)
 Founded : 1960
 Headquarters : Nürnberg, Germany
 Products : Mainly own brand, with a few
larger and regional brands
 Revenue : about 6 billion Euro
 Website : www.norma-online.de
 Number of branches in Brandenburg a.d.H : 3
 Phone Number: 033830 658-0

22. 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
Quelle 3

23. 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
Quelle 3, Quelle 6

24. Brandenburg – retail food market
Share of sales in the retail food industry from 1991 – 2007 in %
Quelle 3

25. 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
Quelle 3

26. Brandenburg – retail food market
Buying power related to group of goods in Mio. Euro
Quelle 3

27. Brandenburg – retail food market
Buying power related to group of goods in 2011
Quelle 3

28. Brandenburg - future
 Scenario A: decrease of population (-14%), constant market share
 Scenario B: decrease of population (-10%), slightly increasing market share
Quelle 3

29. Brandenburg - future
Predicted population of 67,000 in 2020 in Brandenburg a.d.H.
would result in a buying power of about 356 Mio Euro
And 121 Mio. Euro for the retail food industry – based on current calculations from this presentation
Quelle 5

30. 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

31. Thanks for watching