Crisis halves profits Dutch chain HEMA | RetailDetail

Crisis halves profits Dutch chain HEMA

Crisis halves profits Dutch chain HEMA

Dutch chain HEMA has made a net profit of 6.4 million euro in the financial year 2012,almost half of the 11.4 million euro the Dutch chain made in 2011. Sales rose by 0.3 percent to 1.153 billion euro.

Lower consumer trust, higher VAT

HEMA has suffered from the economic crisis in the past year: “Despite the rough economic climate, the sharp drop in consumer trust and higher VAT in the Netherlands, HEMA has been capable of making a net profit in 2012”, announced the company.

 

Although this profit is almost half from the previous year, CEO Ronald van Zetten says to be satisfied with the results: “I am happy I can announce we did well, despite an economically difficult year. (...) In 2012 we opened our 500th location in the Netherlands and later that year two standalone beauty shops in Amsterdam and Haarlem.”

 

Crisis hits home decoration products

Lower consumer spendings can especially be seen in products for the decoration of houses, like curtains. Food is still doing well, especially in the restaurants, where breakfast for one euro is a hit and the recently launched afternoon snack (coffee or tea with pastry, also for the price of one euro) is also bringing in customers. HEMA said that daily clothes such as T-shirts, socks and underwear are also still selling well.

 

“In 2012 market circumstances were challenging once again and it is expected that the crisis will not end in 2013”, says CEO van Zetten, looking towards the future. At the end of the financial year 2012 HEMA had 638 stores, 517 of which in the Netherlands.

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