Less open branches: the construction boom slows the growth of the dm

economy

Thursday, October 18, 2018

The largest pharmacy chain in Germany can not open as many branches as planned. The strong use of the capacity of the construction industry slows the expansion of dm. Nevertheless, the Karlsruhe-based company was able to significantly increase its sales during the past financial year.

The growth of the largest German drugstore chain, DM, is hampered by the construction boom. As CEO Erich Harsch said at the annual press conference, some scheduled openings were not planned due to lack of sufficient resources in the construction sector or lengthy approval procedures. In itself, between 80 and 90 DM stores were to be reopened during the past financial year. In fact, he was 64.

1.8 million people buy every day in German stores. During the last financial year (from October 1, 2017 to September 30, 2018), the number of markets throughout the country reached 1956 stores. 140 million euros were invested in new or converted markets. During the current fiscal year, once again, as many investments and at least 70 other DM markets are planned. A new headquarters is currently under construction in Karlsruhe. A new distribution center is under construction at Wustermark, near Berlin.

There are 3566 markets throughout Europe, in addition to Germany, and more particularly in Austria, Eastern and South-Eastern Europe. From the point of view of the company based in Karlsruhe, it is above all the Italian and Romanian market that can be extended.

The total business figure of the Karlsruhe-based company is growing steadily – but not as vibrant as after the bankruptcy of Schlecker. Harsch spoke of a growing consolidation of the market in Germany. "Overall, the pharmacy sector remains a growing market," he said.

Over the past fiscal year, sales in Europe grew by 4.3% to reach 10.7 billion euros (previous year: 10.26 billion euros). In Germany, sales increased 3.2% to 8.11 billion euros (7.86 billion euros). About 60,000 people in 13 European countries work at dm, there are more than 40,000 in Germany. The company traditionally does not give any profit information. The return on sales is between 1 and 2%, as it has been for years.

Source: n-tv.de