Swiss discounter Denner breaks 3-billion-mark

Denner is now exceeding the 3 billion mark for the first time. With this new sales record, Switzerland's leading discounter is making history in its anniversary year. For eight years in a row, the company has been increasing its sales and is ever gaining a bigger market share. Adjusted for the minus inflation of -0.3%, the real growth in 2017 is even larger at +3.4%.

Denner opened the first Swiss discount store in Zurich-Altstetten fifty years ago. Then forty years ago the first Denner branch was opened in Endingen, and its founder Karl Schweri would have turned 100 on March 31, 2017. In this anniversary year, net sales once again reached CHF 3,064 million, going up CHF 92 million or +3.1% over the previous year. Denner's 522 own branch operations contributed CHF 2,419 million to the positive result, which corresponds to an increase of +4.2 percent compared to the previous year. The increase in customer visits is also very pleasing: At +5.9 percent, Denner achieved significantly more purchases through its own outlets than in the previous year. Due to the company’s dense branch network with its 811 sales outlets, the discounter is always close to the customer and therefore within easy walking distance, which has a positive impact on the eco-balance.

Denner freshness

On the whole, the development of the Denner branches and Denner partners, which of course contributed to the company's success with sales of CHF 567 million, is extremely pleasing overall. Although partner-operated stores continue to perform well, earnings there are down 3.1% year-on-year, primarily because of 17 closures due to generational changes and lack of successors at certain stores. On the other hand, the development in the 25 franchised branches with a result of CHF +11 million is very pleasing.

"We are pleased to have been able to expand our position as Switzerland's leading discounter in this, our anniversary year. In 2017, the focus was on branch-specific and regional assortment adjustments, in order to focus more on customer needs," says CEO Mario Irminger. Both the IP-SUISSE and the fresh assortment were extended. "With around 70 IP-SUISSE products, we are offering our customers sustainable and natural food at affordable prices," explains Mario Irminger.

Beat Zahnd, Director General for Trade at the Federation of Migros Cooperatives, is also satisfied with the result of Denner. "The renewed sales growth confirms the strong position of Denner in the retail trade. With its strategy as a nearby discounter, the company is very well positioned for the future," said Zahnd.

Implementation of the Denner Partner Concept
In the year under review, Denner began nationwide with the modernization of the Denner satellites, which will in future be aligned with the Denner branches. Not only their appearances were renewed, but also the concept and assortment, responding specifically to customer needs. With the name-change to Denner Partner, the retailers are ever moving closer to the discounter, offering customers a uniform assortment at more than 280 sales outlets. The conversion is expected to be completed in 2022.

Source: Denner

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