German EK/servicegroup has acquired a 75 % stake in the Dutch retail service organization Euretco for an undisclosed sum. At the same time, the Dutch company announced its financial results, including a minor turnover drop.
EK/servicegroup wants to become Europe's largest retail service company and this move is meant to strengthen that ambition. Together, the companies have 4,100 independent retailers, which represent a 2.2 billion euro turnover. "With the majority stake in Euretco, we have created a retail service platform for independent entrepreneurs across several European countries, which will help us connect to the current and future trends in the international retail branch", chairman of EK/servicegroup's board Franz-Josef Hasebrink said.
"Within both retail service organizations, EK and Euretco, the independent entrepreneur's interests have played a central role and this vision and structure have brought us together. Two important groups with plenty of business sense will create a wonderful future on the European retail market and our collaboration will lead to lower costs, expanded branches, more knowledge and joined forces in several non-food retail branches", Euretco's chairman Harry Bruijniks added.
The new owner will have its work cut out as Euretco's 2014 financial numbers show that the group's total turnover dropped from 922 to 904 million euro. However, its like-for-like turnover grew 0.1 % and its net profit even doubled from 1.3 to 2.8 million euro.
The Living branch dropped the most, from 347 to 318 million euro, but Fashion also suffered a turnover drop to 382 million euro. Sport managed to boost its turnover from 161 million euro to 169 million euro. Euretco believes the drops were only a minor glitch as a result of several entrepreneurs closing their business.