Dutch store chain Hema managed to lower its 2016 losses significantly when compared to 2015. Full-year turnover grew nearly 5 %, thanks to increased clothing sales and its new store formula.
Growth strategy is paying off
Hema’s total turnover for 2016 is 1.19 billion euro, up 4.7 % compared to the year before. There was also a 2.8 % like-for-like turnover increase compared to 2015. The turnover increase helped grow its normalized EBITA 26.5 % to 108.2 million euro, but there was still a 26.2 million euro net loss. However, this was considerably lower than the 72.5 million euro net loss from 2015.
“We are very happy with our performance in 2016. We welcomed more customers, which helped us grab an increased market share and post record turnover. We are on course and we can now see that our growth strategy, to revitalize our Benelux operations, our international expansion and online growth, is paying off”, CEO Tjeerd Jegen said. “We expanded our store network and turnover in every country outside of the Netherlands. Following positive trials in nine Benelux stores, we will further expand our international store formula across Belgium and the Netherlands in the next few years.”
Expansion in international markets
Hema sold an additional 7.5 % of clothes in 2016, improving its market share considerably. Its market share for “household items and personal care products” also grew, thanks to a 8.9 % turnover increase. Food turnover dropped 2.7 % though.
In 2016, the company achieved growth in every market: Dutch turnover grew 4.8 %, but there was only a 0.8 % increase for Belgium and Luxembourg and 1.5 % in Germany. France posted the best performance, with a 23.9 % turnover increase, not surprisingly since the chain opened another ten stores in the country last year. Its goal for 2017 is to open another 25 stores outside of Belgium and the Netherlands.