In its past fiscal year, Dutch store chain Hema has seen its turnover and profit drop. The company is currently restructuring towards a new store concept which should help boost turnover.
Slight fourth quarter increase
Hema's total turnover reached 1.077 billion euro in 2014, down 1.3 % compared to the 1.091 billion euro in 2013. The like-for-like full-year turnover dropped 4.2 %, although it did manage a minute 0.1 % turnover increase in its fourth quarter. Pre-tax profit dropped from 120.5 million euro to 103.1 million euro, while net losses amounted to 189.2 million euro.
The chain designated its first Spanish and British stores a success and also revealed its French turnover grew 43 % to 55.9 million euro. Dutch results were far less impressive: net turnover dropped 4.3 % to 846.4 million euro, partially because it was remodeling stores into the new store concept.
"Hema has started a transition in 2014, taking several measures to better weather the challenging market. We have started to improve our shopping experience by remodeling nearly all 530 Dutch stores. We have also introduced a new and desirable product range, called 'blijmakers' ("things that make you happy")", Hema wrote in a press release.