Food Retail in Europe

INDUSTRY PROFILE solid food sell in atomic number 63 Reference Code 0201-2058 Publication Date June 2010 www. datamonitor. com Datamonitor USA 245 Fifth avenue 4th Floor New York, NY 10016 USA t +1 212 686 7400 f +1 212 686 2626 e emailprotected com Datamonitor atomic number 63 119 Farringdon Road capital of the United Kingdom EC1R 3DA United Kingdom t +44 20 7551 9000 f +44 20 7675 7500 e emailprotected com Datamonitor Middle East and North America Datamonitor PO Box 24893 Dubai, UAE t +49 69 9754 4517 f +49 69 9754 4900 e emailprotected datamonitor. om Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t +61 2 8705 6900 f +61 2 8705 6901 e emailprotected com atomic number 63 food for thought sell Datamonitor. This compose is a accredited w be and is not to be photocopied 0201 2058 2009 rogue 1 administrator SUMMARY EXECUTIVE SUMMARY merchandise comfort The European victuals shit sedulousness grew by 8. 5% in 2009 to reach a value of $1,66 3. 1 billion. merchandise value forecast In 2014, the European regimen sell diligence is forecast to give way a value of $2,477. billion, an increase of 49% since 2009. Market partition I Hypermarkets, supermarkets, and bank discounters sales proved the most lucrative for the European nourishment sell manufacturing in 2009, with total taxations of $798. 5 billion, equivalent to 48% of the patiences general value. Market air division II Ger many an(prenominal) accounts for 14. 1% of the European solid food sell industry value. Market rivalry The industry is becoming consolidated with large bowed stringed instrument supermarkets or hypermarkets wielding more(prenominal) causation over smaller specialty, luxury or organic food outlets.Europe Food Retail Datamonitor. This visibility is a pass crop and is not to be photocopied 0201 2058 2009 foliate 2 table of contents TABLE OF CONTENTS EXECUTIVE SUMMARY grocery OVERVIEW Market commentary Research highlights Market analysis MARKET cheer MARKET SEGMENTATION I MARKET SEGMENTATION II flipper FORCES ANALYSIS Summary Buyer power provider power New entrants Substitutes Rivalry leaders COMPANIES subway AG intersection point S. A.Lidl Dienstleistung Tesco PLC MARKET FORECASTS Market value forecast APPENDIX Methodology Industry associations link Datamonitor research Disclaimer 2 7 7 8 9 10 11 12 13 13 15 17 18 19 20 21 21 25 29 30 34 34 35 35 36 36 37 Europe Food Retail Datamonitor. This profile is a licenced ingathering and is not to be photocopied 0201 2058 2009 Page 3 CONTENTS somewhat DATAMONITOR subvention Reports Summary Reports Datamonitor consulting 38 38 38 38 Europe Food Retail Datamonitor. This profile is a license product and is not to be photocopied 201 2058 2009 Page 4 CONTENTS LIST OF TABLES circuit card 1 send back 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Europe food re tail industry value $ billion, 200509(e) Europe food retail industry cleavage I% share, by value, 2009(e) Europe food retail industry segmentation II % share, by value, 2009(e) Metro AG secern facts Metro AG mark financials ($) Metro AG tonality financials () Metro AG key financial ratios Carrefour S.A. key facts Carrefour S. A. key financials ($) Carrefour S. A. key financials () Carrefour S. A. key financial ratios Lidl Dienstleistung key facts Tesco PLC key facts Tesco PLC key financials ($) Tesco PLC key financials (? ) Tesco PLC key financial ratios Europe food retail industry value forecast $ billion, 200914 10 11 12 21 22 22 23 25 27 27 27 29 30 31 31 32 34 Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 5 CONTENTS LIST OF FIGURES bod 1 enter 2 project 3 Figure 4 Figure 5 Figure 6 Figure 7 Europe food retail industry value $ billion, 200509(e) Europe food retail industry segmentation I% share, b y value, 2009(e) Europe food retail industry segmentation II % share, by value, 2009(e) Forces driving ompetition in the food retail industry in Europe, 2009 Drivers of buyer power in the food retail industry in Europe, 2009 Drivers of supplier power in the food retail industry in Europe, 2009 Factors influencing the likelihood of bare-ass entrants in the food retail industry in Europe, 2009 Factors influencing the threat of substitutes in the food retail industry in Europe, 2009 Drivers of degree of rivalry in the food retail industry in Europe, 2009 Metro AG revenues & favourableness Metro AG assets & liabilities Carrefour S.A. revenues & profitability Carrefour S. A. assets & liabilities Tesco PLC revenues & profitability Tesco PLC assets & liabilities Europe food retail industry value forecast $ billion, 200914 10 11 12 13 15 17 18 19 20 23 24 28 28 32 33 34 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Europe Food Retail Datamonito r. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 6 MARKET OVERVIEW MARKET OVERVIEW Market definitionThe food retail market includes the retail sales of all food products, both packaged and unpackaged, as well as beverages (including retail sales of all alcoholic and non-alcoholic beverages). All on-trade sales of food and beverage are excluded. All currency conversions are calculated at constant mediocre 2009 exchange rates. For the purposes of this report, Europe consists of Western Europe and Eastern Europe. Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 7 MARKET OVERVIEW Research highlights The European food retail industry had total revenue of $1,6 63. 1 billion in 2009, representing a compound annual harvest-tide rate (CAGR) of 7. 4% for the period spanning 2005-2009. Hypermarkets, supermarkets, and discounters sales proved the most lucrative for the European food retail industry in 2009, with total revenues of $798. 5 billion, equivalent to 48% of the industrys overall value. The per buildance of the industry is forecast to accelerate, with an anticipated CAGR of 8. % for the fiveyear period 2009-2014, which is anticipate to drive the industry to a value of $2,477. 4 billion by the determination of 2014. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 8 MARKET OVERVIEW Market analysis The European food retail industry has experienced very sinewy increase in recent years and the forecast is for this to gently accelerate towards 2014. The European food retail industry had total revenue of $1,663. 1 billion in 2009, representing a compound annual growt h rate (CAGR) of 7. 4% for the period spanning 2005-2009.In comparison, the German and UK industries grew with CAGRs of 2. 1% and 4. 2% individually, over the same period, to reach respective values of $234. 8 billion and $186. 1 billion in 2009. Hypermarkets, supermarkets, and discounters sales proved the most lucrative for the European food retail industry in 2009, with total revenues of $798. 5 billion, equivalent to 48% of the industrys overall value. In comparison, convenience stores and gas stations generated sales of $381. 3 billion in 2009, equating to 22. 9% of the industrys aggregate revenues. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 8. % for the fiveyear period 2009-2014, which is expected to drive the industry to a value of $2,477. 4 billion by the end of 2014. Comparatively, the German and UK industries will grow with CAGRs of 2. 5% and 3. 4% respectively, over the same period, to reach respective values of $265. 5 billion and $219. 4 billion in 2014. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 9 MARKET VALUE MARKET VALUE The European food retail industry grew by 8. 5% in 2009 to reach a value of $1,663. 1 billion.The compound annual growth rate of the industry in the period 200509 was 7. 4%. Table 1 Year 2005 2006 2007 2008 2009(e) CAGR 200509 mention Datamonitor Europe food retail industry value $ billion, 200509(e) $ billion 1,248. 6 1,321. 6 1,412. 4 1,533. 3 1,663. 1 billion 897. 9 950. 4 1,015. 8 1,102. 7 1,196. 1 % Growth 5. 8 6. 9 8. 6 8. 5 7. 4% DATAMONITOR Figure 1 Europe food retail industry value $ billion, 200509(e) Source Datamonitor DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 10 MARKET SEGMENTATION IMARKET SEGMENTATION I Hypermarket, Supermarket, & Discounters is the largest segment of the food retail industry in Europe, ac counting for 48% of the industrys total value. The convenience stores & gas stations segment accounts for a moreover 22. 9% of the industry. Table 2 Category Hypermarket, Supermarket, & Discounters thingmajig Stores & Gas Stations Food and Drinks Specialists Drug Stores & Health and Beauty Stores Cash & Carries & Warehouse Clubs Other sum total Source Datamonitor Europe food retail industry segmentation I% share, by value, 2009(e) % Share 48. 0% 22. 9% 14. 9% 3. 4% 1. 4% 9. 4% 100% DATAMONITORFigure 2 Europe food retail industry segmentation I% share, by value, 2009(e) Source Datamonitor DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 11 MARKET SEGMENTATION II MARKET SEGMENTATION II Germany accounts for 14. 1% of the European food retail industry value. France accounts for a further 13. 5% of the European industry. Table 3 Category Germany France Italy United Kingdom Spain Rest of Europe make sen se Source Datamonitor Europe food retail industry segmentation II % share, by value, 2009(e) % Share 14. % 13. 5% 12. 2% 11. 2% 7. 8% 41. 1% 100% DATAMONITOR Figure 3 Europe food retail industry segmentation II % share, by value, 2009(e) Source Datamonitor DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 12 FIVE FORCES ANALYSIS FIVE FORCES ANALYSIS The food retail market will be analyzed taking supermarkets, hypermarkets and specialist retailers as players. The key buyers will be taken as end-consumers, and food manufacturers, farmers, agricultural co-operatives as the key suppliers. SummaryFigure 4 Forces driving competition in the food retail industry in Europe, 2009 Source Datamonitor DATAMONITOR The industry is becoming consolidated with large chain supermarkets or hypermarkets wielding more power over smaller specialty, luxury or organic food outlets. In our analysis of the global food retail ind ustry, retailers such(prenominal) as supermarkets, hypermarkets, and specialist outlets, will be taken as industry players and end-consumers will be to a lower placestood as buyers. With a wave of different players within the industry, the size and financial strength of each varies accordingly.With consumers generally veneer no substantial switching costs, this buyer mobility forces larger retailers to maintain attractive pricing schemes. Specialist, luxury, or organic retailers do not face the same impairment sensitivity due to the unique level of product differentiation, yet due to the nature of such products, they exist more as niche markets and are not able to secure a large volume of consumers. Specialist outlets whitethorn have no choice but to commit to long term supplier contracts in order to secure a steady supply of quality or specially prepared products.Whereas, supermarkets and hypermarkets have a higher number of options and undersurface hold looser relationships with a larger number of suppliers. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 13 FIVE FORCES ANALYSIS Where branded products attract loyal consumers, the distribution channel for manufacturers is protected and retailers face pressure to stock the popular items. With established supermarkets and hypermarkets present, potential naked as a jaybird entrants may struggle to compete with hostile marketing and pricing policies.Nonetheless, relatively low doorway and exit costs within the industry and the emergence of expand health and ethical niches offer examples of possible niches in which new entrants may flourish sheltered from direct competition with current players. Food service (takeaways, vendors and restaurants) seat be seen as a substitute to food retail products however for the spacious majority of people it currently exists as an occasional accompaniment alternatively than a wholesale alternativ e. Subsistence farming is a more direct substitute, manytimes replacing standard retail behavior outright, yet it is no longer common.The absence of switching costs for consumers ensures a competitive climate within the food retail industry. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 14 FIVE FORCES ANALYSIS Buyer power Figure 5 Drivers of buyer power in the food retail industry in Europe, 2009 Source Datamonitor DATAMONITOR Retailers melt widely in size with large chain supermarkets or hypermarkets such as Tesco and Metro AG wielding power over smaller specialty, luxury or organic food outlets whose grip on the industry is square but currently limited.Accordingly, the financial muscle of industry players differs depending on the type of player. The sheer volume of potential customers in key areas of the food retail industry diminishes the standing of any individual customer. The revenue generated by any particular consumer is minimal, but collectively they represent wider consumer interests and retailers cannot afford to disregard the sensitivities of buyers. Price and convenience are two central concerns however they are not necessarily the principle factors. A rise in health consciousness has driven a growing demand for nutritional quality in food products.The culture of convenience now faces the challenge of a counter-trend in which a shift back towards fresh, simple or traditionally prepared foods undermines the retail rank of frozen foods and similar products. The emergence and development of ethical niches adds further momentum to this movement within the industry. The response of food retailers must accommodate such diverse interests. A number of retailers operate incentive schemes for frequent shoppers and this can help secure customer retention. By discouraging movement across retail outlets, consumer mobility is decrease and, in the long term, buyer power can be weake ned.Although high brand recognition does not automatically translate into consumer loyalty, if it is supported by a product range in which popular food products are central, the retailer can Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 15 FIVE FORCES ANALYSIS a great deal draw in straightaway on the loyalty base that manufacturers have established. Specialty, luxury or organic retailers can, due to the high level of product differentiation, justify price levels that would other(a)wise be unsustainable yet the limited volume of consumers places restraints on the power of such players.Buyer power overall is moderate. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 16 FIVE FORCES ANALYSIS Supplier power Figure 6 Drivers of supplier power in the food retail industry in Europe, 2009 Source Datamonitor DATAMONITOR Suppliers to the food retail industry include food manufacturers, farmers, and agricultural co-operatives. In order to ensure stability and offset the dangers of local sourcing problems or price fluctuations, large retail companies often maintain relationships with a wide range of suppliers.This diffuses dependency, minimizing the risks to retailers and strengthening their standing in relation to their suppliers. Long term contractual obligations are avoided where possible, and switching costs unploughed to a minimum. With a firm hold on key distribution channels, the leading retailers can dominate negotiations with certain suppliers. This is often difficult for smaller retailers such as specialist, luxury or organic outlets. The limited number of suppliers in niche areas and the centrality of product quality or preparation type limits the available range of sourcing options.With switching costs later on higher, the balance of power shifts both(prenominal)what from smaller retailers to specialist suppliers. Whilst the need to satisfy consumer demand for popular products bolsters manufacturers, many others face the problem of a high degree of retailer mobility as they switch suppliers in accordance with pricing pressures. The position of many large retail companies has also been strengthened internally with a surge of feature brand products sidelining certain suppliers. Suppliers who are able to differentiate their product can wield some power over retailers, should their product be popular with the end consumer.Supplier power overall is moderate. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 17 FIVE FORCES ANALYSIS New entrants Figure 7 Factors influencing the likelihood of new entrants in the food retail industry in Europe, 2009 Source Datamonitor DATAMONITOR Large-scale, established retailers hold a natural advantage in operating businesses that benefit significantly from economies of scale, employing aggress ive pricing schemes that cannot be matched by smaller retailers. Strong branding exercises and fast paced expansion deepen this asymmetry.Nevertheless, large retailers are not invulnerable to the threat of new entrants. Exit and entry costs within the industry are relatively low, encouraging potential entrants. The rapid growth of health consciousness and a swell of ethical goods form attractive avenues for new entrants seeking to move into a niche area that offers inbuilt protection from pricing pressures and mainstream marketing. Given the presence of many large-scale retailers, and the protective cover of heavy branding, direct head-to-head competition is extremely difficult for new retailers. Strong growth makes the market attractive to prospective new entrants.Overall, the threat of new entrants is moderate. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 18 FIVE FORCES ANALYSIS Substitutes Figure 8 Factor s influencing the threat of substitutes in the food retail industry in Europe, 2009 Source Datamonitor DATAMONITOR The chief alternative to food retail is food service. Supported by strong marketing campaigns in the case of fast food companies, and cultural traditions with respect to sit-down restaurants, both types represent a relevant alternative for many consumers.However, for the vast majority of people, these ac corporation food retail rather than replace it. A more direct substitute is found in subsistence agriculture in which individuals or families farm food to provide for their own personal needs. This is no longer common, however, since the emergence of market capitalism and the impact of this substitute on food retail is fractional. Environmental concerns, increasing health consciousness, and fears over political or economic instability may, in the long term, give this substitute a more significant role.However, it is unlikely to threaten food retailers in the foreseeable future being both labor intensive and often involving considerable start-up capital. The threat from substitutes is weak to moderate. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 19 FIVE FORCES ANALYSIS Rivalry Figure 9 Drivers of degree of rivalry in the food retail industry in Europe, 2009 Source Datamonitor DATAMONITOR Competition is often fierce within the food retail industry.The neediness of substantial switching costs for consumers places pressure on retailers to secure their custom and loyalty. The limited level of differentiation across the basic product range pushes larger retailers into competitive pricing policies. The close similarity of players increases rivalry as they attempt to differentiate themselves through products and price to attract customers. Whilst some companies operate in other industries and can absorb the temporary impact of declining food sales, or high supply prices, for many, ood retail lies at the heart of the business. This basic dependency gives rise to aggressive competition. Rivalry is strong overall. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 20 conduct COMPANIES LEADING COMPANIES Metro AG Table 4 Metro AG key facts Schluterstrasse 1, 40235 Dusseldorf, DEU 49 211 6886 4252 49 211 6886 2001 www. metrogroup. de December MEOG Frankfurt DATAMONITOR Head office Telephone facsimile Website fiscal year-end Ticker carnation exchange Source conjunction websiteMetro Group (Metro) is a German trade and retail company organize into independent sales divisions. The group operates 2,195 outlets with approximately 12,350,000 square meters of selling stead. It has a presence in 33 countries in Western Europe, Eastern Europe, Asia and Africa. The company employs some 300,000 people. Metro operates in four business segments Metro Cash & Carry, Real, Media Markt and Saturn and Galeri a Kaufhof. Metro Cash & Carry is engaged in cash and carry wholesaling. Operating under the brands of Metro and Makro, it is the groups biggest sales division.Metro Cash & Carrys mixture of products is aimed at commercial and wholesale customers. It operates 665 stores in 30 countries. Real offers a range of food products and an assortment of non-food items. The selling space of the Real stores ranges from 5,000 to 15,000 square meters, with store assortments including up to 80,000 items. Real is found on a large-format hypermarket concept and operates 333 hypermarkets in Germany and 108 stores in Poland, Romania, Russia, Turkey and the Ukraine. Media Markt and Saturn sell consumer electronics across Europe. GaleriaKaufhof operates a chain of department stores in Germany and Belgium. The department stores offer modern lifestyle apparels for men and women and are present in shopping areas and downtown centers. Europe Food Retail Datamonitor. This profile is a licensed product an d is not to be photocopied 0201 2058 2009 Page 21 LEADING COMPANIES In addition to these divisions, Metro provides real estate management services through its subsidiary, Metro Group Asset Management. The company oversees more than 750 properties totaling eight one thousand thousand square meters of commercial space worldwide.It also operates more than 70 shopping centers. Key rhythmic pattern The company enter revenues of $91,119 one one thousand thousand million in the fiscal year ending December 2009, a decrease of 3. 6% compared to fiscal 2008. Its net income was $722 million in fiscal 2009, compared to a net income of $776 million in the preceding year. Table 5 $ million Metro AG key financials ($) 2005 77,482. 1 902. 4 40,000. 8 32,613. 0 246,875 2006 83,266. 6 1,658. 9 44,702. 2 36,293. 7 263,794 2007 89,461. 3 1,366. 9 47,099. 4 38,048. 6 275,520 2008 94,493. 6 775. 9 47,034. 0 38,941. 3 290,940 2009 91,118. 8 721. 7 46,814. 3 46,814. 286,091 Revenues Net income (loss) Total assets Total liabilities Employees Source company filings DATAMONITOR Table 6 million Metro AG key financials () 2005 55,722. 0 649. 0 28,767. 0 23,454. 0 2006 59,882. 0 1,193. 0 32,148. 0 26,101. 0 2007 64,337. 0 983. 0 33,872. 0 27,363. 0 2008 67,956. 0 558. 0 33,825. 0 28,005. 0 2009 65,529. 0 519. 0 33,667. 0 33,667. 0 Revenues Net income (loss) Total assets Total liabilities Source company filings DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 22LEADING COMPANIES Table 7 Ratio Metro AG key financial ratios 2005 1. 2% 4. 2% 1. 5% (0. 2%) 81. 5% 2. 3% $313,851 $3,655 2006 2. 0% 7. 5% 11. 8% 11. 3% 81. 2% 3. 9% $315,650 $6,289 2007 1. 5% 7. 4% 5. 4% 4. 8% 80. 8% 3. 0% $324,700 $4,961 2008 0. 8% 5. 6% (0. 1%) 2. 3% 82. 8% 1. 6% $324,787 $2,667 2009 0. 8% (3. 6%) (0. 5%) 20. 2% 100. 0% 1. 5% $318,496 $2,523 attain margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee value per employee Source company filings DATAMONITOR Figure 10 Metro AG revenues & profitabilitySource company filings DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 23 LEADING COMPANIES Figure 11 Metro AG assets & liabilities Source company filings DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 24 LEADING COMPANIES Carrefour S. A. Table 8 Carrefour S. A. key facts 26 quai Michele, TSA 20016, 92695 Levallois-Perret Cedex, FRA 33 1 55 63 39 00 www. carrefour. com December CA Paris DATAMONITORHead office Telephone Website Financial year-end Ticker Stock exchange Source company website Carrefour is one of the leading grocery and consumer goods distribution groups in the world. The group operates more than 15,000 stores. Carrefours basal grocery formats includes hypermarkets, supermark ets, hard discount and convenience stores. Carrefour primarily organizes its business segments based on geographic presence France Europe excluding France Asia and Latin America. In addition, the groups business operation can be segmented on the basis of its store formats (as mentioned in the previous paragraph).Carrefour is the leading hypermarket retailer in the world. The group operates active 1,302 hypermarket stores across the world, of which 228 hypermarkets are in France, 494 in European countries outside France, 288 in Latin America, and 292 in Asia. In Brazil, the group operates its hypermarket business under the Atacadao brand name these hypermarkets offer a range of competitively priced companyowned and branded products in both food and non-food categories. In addition, the hypermarkets also offer services like insurance, financial services, home computer support, travel and delight reservations and mobile phones.The group operates approximately 2,919 supermarket stores in 11 countries under the banners Carrefour Express, Carrefour market, GB, GS and Champion. The supermarkets offer a wide appointion of mostly food products and some non-food products related to apparel, culture and waste, and tableware. Carrefours hard discount segment, Dia, operates about 6,252 hard discount stores in Spain, France (under Ed and Dia brands), Portugal (under Minipreco brand), Greece, Turkey, Argentina, Brazil and China. The groups hard discount stores offer a range of food, basic health, and cleaning products at discounted rates. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 25 LEADING COMPANIES The groups other activities comprise convenience stores, cash and carry foodservice stores, and ecommerce retail format. Carrefour operates about 4,813 convenience stores and 144 cash and carry stores. Convenience stores are in general operated by the franchisees under the banners Marche Plus, Sho pi, 8 a Huit and Proxi in France DiperDi in Italy Carrefour Express and Carrefour GB in Belgium Carrefour 5 Minut stores in Poland Carrefour City stores in Spain and Carrefour Convenient Buy in Thailand.These stores primarily offer a wide selection of food products these also offer a range of services such as home delivery, dry cleaning, 48-hour photo development, ticket distribution, photocopying, stamps and newspapers. Cash and carry foodservice stores provide wholesale and retail self-service mainly intended for businesses. Carrefour operates cash and carry foodservice stores under the trade name Promocash. Most of the cash and carry stores are operated by franchisees. In addition to the to a higher place mentioned store formats, Carrefour also sells its products through various ecommerce websites.Carrefour operates an online grocery store, Ooshop, a leading French online supermarket in terms of sales. It allows customers to shop on the Internet, and select from product listings including fresh and frozen items, at the same price as they would pay in Carrefours hypermarkets, with the added benefit of home delivery. Carrefour France hypermarkets non-food website, CarrefourOnline. com, offers products such as leisure products (DVDs, games, software, music, books and more), audio and video, household electrical goods, as well as music downloads and even flower and bicycle delivery.Carrefour. es, the groups e-commerce website in Spain, offers both food and non-food products. Key Metrics The company recorded revenues of $119,533 million in the fiscal year ending December 2009, a decrease of 2. 6% compared to fiscal 2008. Its net income was $608 million in fiscal 2009, compared to a net income of $2,140 million in the preceding year. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 26 LEADING COMPANIES Table 9 $ million Carrefour S. A. key financials ($) 2005 116,399. 7 2,199. 8 64,311. 1 51 ,259. 436,474 2006 121,561. 3 3,381. 2 66,093. 8 48,356. 4 456,295 2007 128,305. 2 3,447. 4 72,212. 0 57,385. 0 490,042 2008 122,678. 1 2,139. 7 72,420. 6 57,191. 7 495,000 2009 119,532. 5 607. 7 71,685. 0 56,229. 5 495,000 Revenues Net income (loss) Total assets Total liabilities Employees Source company filings DATAMONITOR Table 10 million Carrefour S. A. key financials () 2005 83,710. 0 1,582. 0 46,250. 0 36,864. 0 2006 87,422. 0 2,431. 6 47,532. 0 34,776. 0 2007 92,272. 0 2,479. 2 51,932. 0 41,269. 0 2008 88,225. 2 1,538. 8 52,082. 0 41,130. 0 2009 85,963. 0 437. 0 51,553. 0 40,438. 0Revenues Net income (loss) Total assets Total liabilities Source company filings DATAMONITOR Table 11 Ratio Carrefour S. A. key financial ratios 2005 1. 9% 2. 8% 9. 4% 7. 5% 79. 7% 3. 6% $266,682 $5,040 2006 2. 8% 4. 4% 2. 8% (5. 7%) 73. 2% 5. 2% $266,409 $7,410 2007 2. 7% 5. 5% 9. 3% 18. 7% 79. 5% 5. 0% $261,825 $7,035 2008 1. 7% (4. 4%) 0. 3% (0. 3%) 79. 0% 3. 0% $247,835 $4,323 2009 0. 5% (2. 6%) (1. 0%) (1. 7%) 78. 4% 0. 8% $241,480 $1,228 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source company filingsDATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 27 LEADING COMPANIES Figure 12 Carrefour S. A. revenues & profitability Source company filings DATAMONITOR Figure 13 Carrefour S. A. assets & liabilities Source company filings DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 28 LEADING COMPANIES Lidl Dienstleistung Table 12 Lidl Dienstleistung key facts Rotelstrasse 30, 74166 Neckarsulm, DEU 49 732 30 6060 www. idl. de December DATAMONITOR Head office Telephone Website Financial year-end Source company website Lidl & Schwarz Stiftung (Lidl) operates a chain of grocery stores. The company primarily operates in Europe . Lidl operates about 6,800 deep-discount department stores and no-frills Lidl supermarkets throughout Europe. In Germany it operates about 3,100 stores. The company offers about 800 different products in its stores mostly under Lidls own brand. These include dairy products, frozen foods, sausages, fresh meat and poultry, fruit and veg delivered fresh every day, and a range of breads.Lidl is also expanding its presence into Denmark, Hungary, Norway, and Slovenia. Key Metrics Financial information for this company is unavailable. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 29 LEADING COMPANIES Tesco PLC Table 13 Head office Telephone Website Financial year-end Ticker Stock exchange Source company website Tesco PLC key facts New Tesco House, Delamare Road, Cheshunt, Hertfordshire, EN8 9SL, GBR 44 1992 632 222 www. tescoplc. com February TSCO London DATAMONITOR Tesco is a leading food and grocery retailer.The c ompany operates 4,331 stores in 14 countries worldwide. It operates in the UK, other European countries, the US and Asia. The company operates in a case-by-case segment retail. However, Tescos operations can be examined by the store formats operated by it Express, Metro, Superstore, Extra and Homeplus. The company has over 960 Express stores (up to 3,000 sq ft) offering fresh food at convenient locations. These stores sell a range of up to 7,000 products including fresh produce, wines and spirits and bakery products. The company has over 170 Metro stores (approximately 7,000-15,000 sq ft) in town and city centre locations.It offers a tailored range of food products including ready-meals and sandwiches. Tesco operates about 450 superstores (approximately 20,000-50,000 sq ft) at which it offers food as well non-food products such as DVDs and books. Tescos Homeplus stores (approx. 35,000-50,000 sq ft) are dedicated to non-food including clothing. Tesco has more than 175 Extra stores (approximately 60,000 sq ft and above) which offer a variety of food and non-food product lines ranging from electrical equipment to homewares, clothing, health and beauty, and seasonal items such as garden furniture.Additionally, about 115 Extra and Homeplus stores have opticians and around 270 of them have pharmacies. In addition to stores, Tesco offers retailing services through its online shopping channels, tesco. com and Tesco Direct. The company also provides broadband internet connections (Tesco broadband) and telecommunications services (Tesco Mobile and Home Phone) through a 50-50 joint venture with O2, a mobile phone company. Tesco also provides financial services through Tesco personalized Finance (TPF) which offers a choice of 28 products ranging from savings accounts and credit cards to car and travel insurance.All its financial products are also available for online purchase. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photoc opied 0201 2058 2009 Page 30 LEADING COMPANIES Key Metrics The company recorded revenues of $84,676 million in the fiscal year ending February 2009, an increase of 14. 9% compared to fiscal 2008. Its net income was $3,376 million in fiscal 2009, compared to a net income of $3,320 million in the preceding year. Table 14 $ million Tesco PLC key financials ($) 2005 57,602. 2 3,042. 4 31,811. 6 17,695. 242,980 2006 67,234. 5 3,553. 7 35,167. 3 20,447. 6 273,024 2007 66,461. 4 2,959. 8 38,664. 9 22,188. 6 318,283 2008 73,720. 0 3,319. 9 47,014. 4 28,463. 7 345,737 2009 84,675. 6 3,376. 0 71,779. 5 52,460. 3 364,015 Revenues Net income (loss) Total assets Total liabilities Employees Source company filings DATAMONITOR Table 15 ? million Tesco PLC key financials (? ) 2005 36,957. 0 1,952. 0 20,410. 0 11,353. 0 2006 43,137. 0 2,280. 0 22,563. 0 13,119. 0 2007 42,641. 0 1,899. 0 24,807. 0 14,236. 0 2008 47,298. 0 2,130. 0 30,164. 0 18,262. 0 2009 54,327. 0 2,166. 46,053. 0 33,658. 0 Revenue s Net income (loss) Total assets Total liabilities Source company filings DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 31 LEADING COMPANIES Table 16 Ratio Tesco PLC key financial ratios 2005 5. 3% 10. 1% 10. 9% 6. 4% 55. 6% 10. 1% $237,066 $12,521 2006 5. 3% 16. 7% 10. 5% 15. 6% 58. 1% 10. 6% $246,259 $13,016 2007 4. 5% (1. 1%) 9. 9% 8. 5% 57. 4% 8. 0% $208,812 $9,299 2008 4. 5% 10. 9% 21. 6% 28. 3% 60. 5% 7. 7% $213,226 $9,602 2009 4. % 14. 9% 52. 7% 84. 3% 73. 1% 5. 7% $232,616 $9,274 Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source company filings DATAMONITOR Figure 14 Tesco PLC revenues & profitability Source company filings DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 32 LEADING COMPANIES Figure 15 Tesco PLC assets & liabilities Source company filings DATAMONITOR Europe Food Retail Datamonitor.This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 33 MARKET FORECASTS MARKET FORECASTS Market value forecast In 2014, the European food retail industry is forecast to have a value of $2,477. 4 billion, an increase of 49% since 2009. The compound annual growth rate of the industry in the period 200914 is predicted to be 8. 3%. Table 17 Year 2009 2010 2011 2012 2013 2014 CAGR 200914 Source Datamonitor Europe food retail industry value forecast $ billion, 200914 $ billion 1,663. 1 1,811. 4 1,978. 0 2,161. 3 2,359. 7 2,477. billion 1,196. 1 1,302. 7 1,422. 5 1,554. 3 1,697. 0 1,781. 6 % Growth 8. 5% 8. 9% 9. 2% 9. 3% 9. 2% 5. 0% 8. 3% DATAMONITOR Figure 16 Europe food retail industry value forecast $ billion, 200914 Source Datamonitor DATAMONITOR Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 34 A PPENDIX APPENDIX Methodology Datamonitor Industry profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style.Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitors in-house databases provide the foundation for all related industry profiles Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions Market definitions are standardized to allow comparison from country to country.The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including study/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databasesModeling & forecasting tools Datamonitor has developed powerful tools that allow numerical and soft data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, restrictive and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 35 APPENDIX Industry associationsGlobal Food Market ing Institute 655 15th Street, NW, Washington DC, 20005 Tel. 001 202 452 8444 Fax 001 202 429 4519 www. fmi. org/ CIES The Food Business Forum 7, sorrowfulness de Madrid 75008 Paris FRANCE Tel. 0033 1 4469 8484 Fax 0033 1 4469 9939 www. ciesnet. com EuroCommerce Avenue des Nerviens 9-31, B-1040 Brussels, Belgium Tel. 0032 2 737 0598 Fax 0032 2 230 0078 www. eurocommerce. be Related Datamonitor research Industry Profile Food Retail in Western Europe Food Retail in Asia-Pacific Food Retail in the US Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 36APPENDIX Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee.As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. Europe Food Retail Datamonitor. This profile is a licensed product and is not to be photocopied 0201 2058 2009 Page 37 ABOUT DATAMONITOR ABOUT DATAMONITOR The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. unite our industry knowledge and experience, we assist over 6,000 of the worlds leading companies in making better st rategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. Premium Reports Datamonitors premium reports are based on primary research with industry panels and consumers. 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