Real

The segment Real is a leading German operator of food retail hypermarkets with currently 279 outlets. These hypermarkets are characterised by a large product range of up to 80,000 individual products – including many high-quality, fresh-food products and an attractive range of non-food products. In addition to its store-based retail operations, Real also pursues online sales. Real.de offers customers a selection of more than 12 million products.

Real’s like-for-like sales declined by 1.7% in financial year 2017/18. This decline is in particular attributable to persistent warm weather and a temporarily limited availability of goods in the second half of the year. Reported sales decreased by 2.3% to €7 billion due to 3 market closures, some of which were temporary.

Online sales continued to develop very positively. In financial year 2017/18, they increased by around 35% and achieved a share of sales of approximately 2%.

The EBITDA excluding earnings contributions from real estate transactions reached a total of €143 million in financial year 2017/18 (2016/17: €154 million). The previous year included restructuring expenses of €60 million. The result was negatively affected in the amount of around €50 million by the termination of the future collective agreement that took place in the current financial year. Earnings contributions from real estate transactions amounted to €12 million (2016/17: €6 million). EBITDA amounted to €155 million (2016/17: €159 million).

As part of the required annual impairment test, goodwill of €64 million attributed to Real was written down in full. This is the primary reason for the considerable increase in impairment losses compared to the previous year.

As of 30 September 2018, the store network spanned 279 individual stores (2016/17: 282 stores), 3 less than on the reporting date in the previous year (of which 2 were temporary closures due to renovation work).