Real

Real is an innovative food company in Germany, where it is a leading operator of hypermarkets with currently 282 stores. The hypermarkets are distinguished by a product range of around 80,000 individual products – many of them high-quality fresh-food products – and an attractive range of non-food products. In addition to its bricks-and-mortar retail operations, the company is also pursuing online sales. The integration of the Hitmeister online shop into real.de allowed Real to expand its online product range considerably. Since February 2017, it has been offering a very large assortment of products.

Compared to the , Real’s reported sales declined by 3.1% to €7.2 billion in financial year 2016/17. This was particularly due store disposals. Like-for-like sales decreased by 1.0%. After a difficult first half of the year, the sales trend stabilised over the further course of the financial year: following growth in the 3rd quarter, like-for-like sales increased by 0.6% in the 4th quarter. Online sales continued to develop very positively. Again, it rose markedly by more than 50% to €105 million in financial year 2016/17. This positive development was driven by the integration of the acquired online shop Hitmeister.

before  decreased from €105 million to €80 million. This is due to a decline in sales and increased expenses for advertising and the expansion of the online business. In many food categories, the development was influenced by continuing high competition, while lower personnel costs had the opposite effect.

In financial year 2016/17, EBIT totalled €19 million (2015/16: €108 million). This decline is primarily attributable to expenses incurred by the restructuring of the headquarters.

In financial year 2016/17, Real’s German store network was reduced by 3 to 282 stores.

Key figures Real 2016/17 in year-on-year comparison

 

 

 

 

 

 

Change in % compared with the previous year’s period

 

 

2015/16
€ million

 

2016/17
€ million

 

in group currency (€)

Currency effects in percentage points

in local currency

like-for-like sales in local currency

1

Before special items.

2

Before special items; the EBIT margin shows the EBIT/sales ratio.

Sales

 

7,478

 

7,247

 

−3.1

0.0

−3.1

−1.0

Germany

 

7,478

 

7,247

 

−3.1

0.0

−3.1

−1.0

EBIT1

 

105

 

80

 

EBIT margin (%)2

 

1.4

 

1.1

 

Locations (number)

 

285

 

282

 

Selling space (1,000 m2)

 

1,967

 

1,941

 

Retail
The Real sales line of METRO AG operates in the food retail sector and, with 282 stores, it is a leading hypermarket operator in Germany.
Glossary
Previous year
Period of 12 months, usually cited as reference for statements in the annual report.
Glossary
EBIT (Earnings Before Interest and Taxes)
This key figure is used for the international comparison of companies.
Glossary
Special items
Business transactions or a number of uniform business transactions that do not recur regularly, that are reflected in the income statement and that have a significant impact on business activities are classified as special items. As a result, the presentation of special items better reflects ordinary business performance and contributes to a better understanding of the earnings position.
Glossary