Douwe Egberts sees sales drop | RetailDetail

Douwe Egberts sees sales drop

Douwe Egberts sees sales drop

DE Master Blenders 1753 had to take quite the drop in sales in the third quarter of the financial year: total quarterly sales dropped by 9.4 percent to 643 million euro (-3.2% on a comparable basis). Especially in Western Europe the coffee of Douwe Egberts is rather weak.

Lower prices, more promotional activities

The trading update the Dutch coffee and tea company published did not look very positive: “The segment Retail – Rest of World sustained the good performance of the preceding quarter” (+6.8% on a comparable basis), but in Western Europe, Douwe Egberts fared less well: sales there were 8.5% lower on a comparable basis.

 

That is among other a consequence of “the earlier announced management changes in the five key countries, lower volumes in France due to tough trade negotiations and by aggressive promotional activities by private labels in most Western European countries.”

 

Because of the bad results in January and February, management has decided to drop prices and to increase promotional activities “to re-establish its competitive position, which has resulted in a significant rebound in volumes and sales performance from March onwards.” This made the market share for coffee rise in the Netherlands, Denmark and Germany, but it remained stable in France and in Spain and Belgium market shares dropped.

 

The Dutch company, which will soon be taken over by German investment company Joh. A. Benckiser (JAB), expects “to grow its segment sales by 0 to +2%. The outlook reflects continued price and volume pressure in Western Europe. The company is therefore rebalancing pricing and volumes to re-establish its competitive position, which affects sales.”

Questions or comments? Please feel free to contact the editors


Zara opens new flagship store with holograms and robots

18/05/2018

Zara’s remodeled flagship store in Stratford (London) welcomes customers with holograms, robot arms and iPad-powered employees. The store wants to unite the best of both the online and offline shopping world.

Komono wants to reach 10 physical stores this year

17/05/2018

Belgian accessory label Komono wants to double its number of physical stores to ten this year. “The stores are important to tell our story”, Anton Janssens and Raf Maes told De Standaard.

Hema has to pay Levi's millions

17/05/2018

Store chain Hema needs to pay a 4.4 million euro fine to jeans brand Levi’s after the latter went to court because Hema applied its V-shaped stitching to its own collection.

Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.

H&M is turning to algorithms to boost sales again

14/05/2018

In an effort to reverse the decline in its worldwide sales, H&M is using technology that will help the world’s largest clothing brand stock its stores more efficiently, sell more effectively and adapt more quickly to current consumer trends.