Real
Real is one of the leading hypermarket operators in Germany, where it is active both in store-based and online retail. All Real hypermarkets are characterised by a large proportion of high-quality fresh produce, a wide range of non-food articles and attractive prices offering good value for money.
Sales
€7,735 M
EBIT
€88 M
EBIT margin
+1.1 %
Sales at Real declined by 8.3 per cent to €7.7 billion in financial year 2014/15 as parts of the sold European business had still contributed to sales in financial year 2013/14.
Like-for-like sales of Real in Germany fell by 0.8 per cent in financial year 2014/15. Due mostly to store closures, reported sales retreated by 2.6 per cent to €7.7 billion. Sales were particularly dampened by persistently intense competition in food retail. The sales volume and customer traffic were positively impacted by the store modernisation programme based on the successful renovation of the store in Essen, which has now been implemented at 107 sites.
Key figures Real 2014/15
in year-on-year comparison
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Change in % compared with the previous year’s period |
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2013/14 |
2014/15 |
in € |
Currency effects in percentage points |
in local currency |
like-for-like sales in local currency |
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Sales |
8,432 |
7,735 |
−8.3 |
0.0 |
−8.3 |
−0.8 |
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Germany |
7,939 |
7,735 |
−2.6 |
0.0 |
−2.6 |
−0.8 |
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EBIT1 |
81 |
88 |
8.3 |
– |
– |
– |
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EBIT margin (%)1 |
1.0 |
1.1 |
– |
– |
– |
– |
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Locations (number) |
311 |
293 |
– |
– |
– |
– |
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Selling space (1,000 m2) |
2,145 |
2,031 |
– |
– |
– |
– |
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NEW STORE CONCEPT – INCREASED FOOTFALL
In 2015, Real continued the modernisation of its hypermarket s that it began two years ago. A total of 57 outlets were refurbished and adapted to the new store concept. This brings the number of hypermarkets that completed the reorientation by the end of financial year 2014/15 to 107 – or more than one third of all locations.
The innovations in the stores are consistently geared toward changing customer behaviour. Added value for the customer is increased by the new structure of the product range and the optimised placement of goods in the stores as well as by new services such as free Wi-Fi access. These measures underscore Real’s strong position in the food retail sector while also improving its competitiveness. The positive response and increased footfall in the modernised stores confirm this.
EBIT at Real totalled €−441 million in financial year 2014/15 (2013/14: €19 million). This included special items of €529 million relating in particular to non-cash impairment losses on goodwill and store closures.
EBIT before special items increased from €81 million in the previous year to €88 million. The previous year’s figure still included negative earnings contributions from Real Eastern Europe in the amount of €6 million.
In financial year 2014/15, Real’s store network in Germany was reduced by 14 to 293 sites.
For more information, see the Annual Report 2014/15.