Dansk Supermarked to invest billions in expansion and refurbishing

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Dansk Supermarked Group (Danish Supermarket Group) will annually invest 2 billion DKK in the construction of new stores, refurbishment of existing and further development of the company’s e-commerce platforms. In 2016 more than a billion will be invested in Denmark.

This was announced with the annual result in European top class.

For the third consecutive year the Group takes both earnings before interest and tax (EBIT) and the EBIT margin to a level that is among the very best in European retailing.

”Thereby is Danish Supermarket Group retaining  its ability to combine long-term, strategic investments with a constant focus on customer needs, here and now, and the continuation of recent years’ strong results lanes thus the way for an increased rate of investment both in Denmark and abroad,” states the company.

In 2015 rose Danish Supermarket Group’s turnover to 57.474 billion DKK (57.156). The figures do not include Danish Supermarket Group’s share of revenue in the English part of the business, which is several hundred million and growing. Earnings before interest and tax (EBIT) was lifted to 2,552 billion DKK (2,430).

”2015 can be described as a good year for Danish Supermarket Group. We have extended our financial performance, strengthened our market position across countries and made a number of strategic investments. At the same time, we have always managed to do something extra for our customers with the introduction of new and exciting products, more competitive prices and launched a new store concept,” says Per Bank, CEO.

”We have grown more than the market in the food, but our growth rate is pulled down by the prices, for example, flat screens that we sell in Bilka, have declined significantly.”
He estimates that the food market grew by 1.4 percent in Denmark in 2015 and less than that in Europe.

2015 was the first full year standing on its own feet with Salling funds as majority owner.

The rollout of Netto UK continued. A total of nearly 50 new stores opened in Denmark, Sweden, Poland, Germany and the UK. Both Netto Denmark and Netto Sweden delivered record results. Acquisitions in 2015 included Wupti.com in e-commerce and online food business iPosen.dk, active in the B2G market.

”The outlook for 2016 is that we can continue to outperform market growth in e-commerce and expand the business further within our traditional business areas. Not least because of the ambitious investment track that covers both Netto, føtex, Bilka and Salling,”, says Per Bank.

Danish Supermarket Group employs approximately 50,000 employees in five countries.