Tengelmann Group again reports positive results

The Tengelmann Group completed its 151st year with consolidated net revenue of € 7.5 billion, or an increase of 3.8 percent.

This positive result was achieved in large part by the retail business units OBI, KiK, TEDi and babymarkt.de, which were again able to continue developing their leading position in the respective market segments. The real estate developer Trei Real Estate and the two venture capital venture companies Tengelmann Ventures and Emil Capital Partners also contributed to the year’s success.

However, the current financial year is overcast by two strokes of fate, both for the company and the owner family: Shortly after the death of Erivan Haub in March of this year, Karl-Erivan W. Haub failed to return from a ski mountaineering tour in the Matterhorn region and is since reported as missing. Consequently, Christian W. E. Haub – formerly co-CEO with his eldest brother – assumed sole executive responsibility for the Tengelmann Group on 17 April 2018. “The loss of my brother is a tragedy for our family. But it does not jeopardize our family enterprise,” says Haub. “Since we took over executive management from our father, Karl-Erivan and I worked together closely and made all important decisions jointly. During that time, we succeeded in leading the enterprise through an extensive process of transformation, so that its position today is rock solid and fit for the future. I will continue to manage the company on this basis in order to pass our 151-year-old company on to the next generation when the time comes!”

In June 2018 the owners appointed Haub’s elder brother Georg Haub to the group’s supervisory board, which now once again includes a family member and owner. “It is especially important for me to be able to rely on the dynamic support of my brother Georg in this time of exceptional challenges,” says Haub.

Do-it-yourself – OBI

In Austria, the Czech Republic, Slovenia and Slovakia OBI continued to expand its leading position in central Europe after the acquisition of 68 competitor stores in 2015. The focus of business activities is on continued development to become the leading cross-channel solution provider in the home improvement market. To this end OBI established the innovation unit “OBI next”: a project that develops innovative product concepts for the leading DIY company. In the concluded financial year the company achieved net revenue of € 6.18 billion, or an increase of 1.7 percent compared to the previous year. At the end of the year, OBI operated 655 stores in eleven countries with 45,183 employees; 352 of those locations are in Germany.

Clothing – KiK

In Germany and the nine European countries where the family discounter is represented, the company, for the first time in its history, earned revenue of € 2 billion, or growth of 2.8 percent, with 26,852 employees in 3,564 stores. Despite the growing number of competitors KiK easily continued to maintain its position as one of the most successful retailers in the low price segment, and as Germany’s fifth largest textile company. KiK continues on its course of expansion with the market entry in Italy. Due to numerous investments in logistics, a new IT system and expansion of the company headquarters, the company is well positioned for the future.

Local supplier – TEDi

At the end of the financial year (deviating financial year from 1 May 2017 – 30 April 2018) the non-food local supplier TEDi had a total of 12,864 employees at 1,577 locations, and with revenue of € 735 million achieved outstanding growth of 16.4 percent in comparison with the previous year. This was primarily the result of the modernisation of the existing stores started in 2014 which substantially improved the shopping atmosphere. TEDi meanwhile has operations in five countries, now also including Croatia. For the current year, market entries are planned in Poland and Italy.

E-Commerce – babymarkt.de

In addition to one German and 14 international online shops operating under the label pinkorblue the specialist for baby and small children’s articles meanwhile also has six retail stores in Essen, Münster, Dortmund, Duisburg and Düsseldorf. In the concluded financial year the company’s revenue increased by more than 10 percent to € 134.3 million. babymarkt.de strives to achieve online market leadership in Europe, and to this end intends to consolidate the online sales internationally.

Venture capital – Tengelmann Ventures (TEV)

Through Tengelmann Ventures GmbH (TEV), the Tengelmann Group has been investing since 2009 in start-ups in the areas of consumer internet, marketplaces and technology. With around 55 investments, TEV is one of Germany’s most important venture capital investors today. With the payment handler Klarna and the Global Fashion Group, two of the TEV investments are among the top ten of the highest valued start-ups in Europe.

Venture capital – Emil Capital Partners (ECP)

The US venture capital business of the Tengelmann Group is pooled in the subsidiary Emil Capital Partners (ECP). The portfolio comprises 30 investments, which underwent strong growth in 2017. The sale of the investment Data Council was ECP’s first – very successful – exit.

Property – Trei Real Estate

The real estate subsidiary of the Tengelmann Group specialises in development projects for residential real estate and retail centres: Projects included the construction of residential complexes in Berlin and student apartments in Cologne and Munich, as well as the purchase of properties in Düsseldorf and Prague, where residential projects are likewise planned. The development of the Vendo Park retail centres in eastern Europe also continues to make progress; meanwhile, the company operates 17 Vendo Parks in Poland, Slovakia and the Czech Republic. In financial year 2017 Trei Real Estate additionally took up business operations in the USA. In the coming years, numerous residential projects are planned in the Southeast United States.