pure retail, pure partnership!

pure retail,
pure partnership!
Annual report 2011
NoTE This annual report is published by Euretco Holding B.V.
In previous years it was published by Euretco BV. The annual report
(Euretco Holding B.V.) from previous years may be requested for
comparison purposes. See page 57 for contact details.
SUMMARY OF NEWS REPORTS 2011
« Decorette forging ahead with new campaigns » « Euretco Wonen introduces new private label seats » « FreeBees savings
Otto van Leeuwen:
DARE
TO
CHOOSE
2
Vivante
entrepreneurs
put their
customers first
The power of
collaboration
More customer-focused, more solid, more professional, more reliable and decisive than other retail
service organisations. Five clear and powerful core
values which form the basis of the relationship
between Euretco and the almost 1,300 independent retailers and franchise-holders. Together, they
operate some 1,700 outlets in the home, fashion and sport sectors. Euretco offers the sense of
belonging to a club, expertise, financial resources,
efficiency and innovation to independent retailers with as a result that they together have the
strength of a large organisation. With the emphasis on ‘together’. Because belonging, being a part of
it, supports everyone’s individual success.
Our expertise is anchored in the knowledge and experience
of our employees. From our senior management down,
most of them have act ually r un a shop or worked in
one for a long period. Together with their teams of enthusiastic specialists they act as an expert sounding board in
the areas of purchasing, marketing, sales and web services.
And independent retailers can also come to Euretco for ad-
s plan has SPORT 2000 as new partner
vanced insights into effective management and modern
HR policy. Detailed propositions which enable individual
retailers to become stronger together. For example the
unique Euretco Retail Monitor provides associate retailers
with relevant and usable management information, which
enables them to significantly improve their returns.
Euretco has four core tasks: retail services, formulas,
financial services – including the convenience of central
payments – and wholesale. Concrete results from tailored
advice and monitoring of administrative processes for retailers mean improved cost management and better margins. Highly successful shop formulas and floor designs
include SPORT 2000, Runnersworld, Decorette, Vivante,
Topform, Lampenier, Slaapkenner, Emotions, Qoot and
JhUIST. Euretco also facilitates high-value marketing partnerships including the Mode Alliance and Het Origineel.
In addition, via Euretco Label Company, Euretco has with
Babyface, LCKR, Raggs and Blue Rebel a number of premium brands within the baby and children’s fashion segment
with a clear international appeal.
Euretco feels that its primary task is to take concerns away
from retailers. They need to know that they are supported
in their day-to-day efforts on the shop floor with relevant
and appropriate knowledge, practical experience and functional facilities. Which then gives them the space they need
to focus even more intently on the customer. That, coupled
with the immediate and concrete benefits the collective
brings in terms of purchasing, costs, investments in ICT
and access to scores of international alliances, makes the
collaboration between Euretco and its independent retailers and franchise-holders as unique as it is profitable. Euretco, the power of collaboration.
» « Euretco Wonen reports great success »
Euretco Wonen
scores with
a new style of
relax armchairs
3
Prologue
Pure retail,
pure
partnership
SUMMARY OF NEWS REPORTS 2011
We are motivated by our passion for retail and
for retailers and the desire to be the best retail
serviceorganisation. Home, fashion and sport
are our areas. Euretco feels comfortable here like
no other company and we want to and can excel.
With true added value for our associate retailers.
And successful formulas which we bring to the
market in a way that differentiates.
Retail trade is dynamic and fast-paced. Every single day,
tens of thousands of consumers and retailers meet on the
shop floor, face-to-face and digitally. Consumers home
in on the best deal and are more frequently heading for
the internet first. In shops, consumers expect an experience, quality, advice and service. In exchange for this, they
are prepared to pay a fair price. It is a question of balance,
of matching. Everything revolves around aligning supply
with demand. Personal attention for the customer is the
« Exclusive collaboration between Dyanne Beekman and Euretco fashion retailers » « Sleep Expert expands with 5 premium de
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FO INGS OUR TW
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OF S&ZO
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4
ealers
key to success in this. Which means that retail is above all
a true people job.
Entrepreneurship also forms the basis of the match which
Euretco has with the independent retailers we work with.
We too think and act with a ceaseless strive to find the
right balance between supply and demand. Demand from
the retailers and the right supply that we want to provide
in return. This is why we focus on independent entrepreneurship with a plus: greater collaboration, greater added
value, greater efficiency, greater benefit. And as a result:
greater returns. But it’s not just in sales figures and in profits that our added value is evident. Many retailers have been
our associates for decades. Even in difficult times, the association demonstrates its inestimable value. Because even
then, Euretco remains focused on continuity. This applies
equally to retailers as it does to suppliers.
We attach great value to having a good relationship with
our suppliers. Which is hardly surprising in that we see
them as crucial links in successful and profitable retail.
Doing business with Euretco for suppliers means access to
a large and highly representative organisation of inspired
retailers with above-average ambition and drive. For the
retailers, good supplier relationships in turn mean a a
broader selection, keener prices, better terms, security and
continuity.
Our retailers’ interests: they come first. We constantly ask
ourselves why anyone would actually want to go into business. Well: the reason is to work independently, be proactive, do things for yourself. We therefore choose carefully
our position alongside the retailer. A position with varied
roles, but which is always driven by our passion for entrepreneurship, and for retail. When it comes to identifying
opportunities and seizing chances to observe and experience what drives the customer, what moves him or her
to cross the threshold. To pick that particular retailer to
spend their money with - money that after all can only be
spent once. Service, customer focus and being open to innovation and change. Putting the customer at the heart of
everything. Anyone who differentiates in this respect reports growth. And even bucks the trend.
Euretco applies one important fundamental principle: the
retailer ultimately decides what form of collaboration he or
she prefers. We attach great importance to this independence, because it is precisely this personal source of inspiration that means independent retailers bring variety to the
Dutch retail landscape. It serves them well. Connected and
collaborative retailers in the retail trade on average perform
better than individuals. Often even better than the large
chain stores. A powerful Euretco is together with its associate retailers a player that offers a counterbalance to chain
and multiple stores. Euretco therefore has a responsible
role to play. We believe it is crucially important to remain
closely connected with retailers’ interests. This collaboration is often long-lasting and every year, tens of retailers
find their way to us. If Euretco becomes stronger, the retailers become stronger. And vice versa.
Euretco is convinced that there is a good future ahead for
inspired entrepreneurship in a constructive, professional
collaboration within non-food retail. Retailers and their
employees who are genuinely in touch with their customers and products will continue to occupy a strong position
in retail-land. Euretco aims to continue to offer them the
latest concepts and strong support so that they can concentrate on the service and on contact with their customers.
That is what drives us.
» « LCKR revived » « SPORT 2000 intensifies overall strategy »
Christine Boland inspires participants
EURETCO
LABEL COMPANY
KEEPS
BLUE REBEL JEANS
BRAND
IN THE MARKET
5
Harry Bruijniks,
chairman of the management
board:
‘Our figures are
again ahead of
the market’
The year under review is best characterised as ‘a
year with two faces’. Whereas in the first six or
seven months there was talk in the fashion and
home sectors of recovery and even some growth,
the autumn unfortunately saw nothing but negatives. The very conservative emerging confidence
all but evaporated to end the year in the negative. For the sport sector, there were no positive
signs in 2011. “Against this backdrop, Euretco
performed well with figures that are ahead of the
market figures. This is quite a performance from
the retailers working with us. It is our shared success in circumstances which were not at all easy
and are unfortunately still not easy.”
Two faces
“One year ago, I dared in my forecast for 2011 to remain
optimistic about economic developments. That optimism
has gradually become muted during the year,” says Harry
Bruijniks looking back. “In March last year when I expressed my thoughts about the economy, I was well well
aware that I perhaps had a more optimistic view of the economic picture than many other people. But nevertheless, I
believed in recovery, just as I believed in our power to buck
the trend. And until after the summer, I was on the right
track in terms of the economy; however then, consumer
confidence went into free-fall. And with it the belief that
the Netherlands would escape another recession. This was
not to be the case. Ongoing reports about, for example,
new setbacks in combating the Greek debt crisis penetrated deep into society, leaving consumers more suspicious
and conservative. People kept a tighter hand on the purse
strings and the removals market even came to a complete
standstill. Neither did the increasing uncertainty about
mortgage rates help confidence among Dutch households.
SUMMARY OF NEWS REPORTS 2011
« SPORT 2000 and retail Result are further developing retail culture » « LCKR revived: The brand for today’s children » «
Interim Director Kenaad Tewarie
‘The power
of Euretco’s
e-commercepolicy is in its
simplicity’
6
And then at the end of the year, the disastrous tidings about
the problems with various pension funds again came to the
fore”
Due satisfaction
“If I look back at all the economic developments over the
previous six to eight months and at the same time realise
that consumer confidence recently in Europe has not fallen
so sharply anywhere as it has in the Netherlands, it gives
the results we as Euretco together with our retailers have
reported an added sheen,” says Bruijniks. “In that sense, we
can look back on the reporting year 2011 with a good feeling. Both with respect to our performance and with regard
to Euretco’s financial development - satisfaction is due.”
Bruijniks attributes the good results, despite the slight decline in turnover, primarily to consistent adherence to the
policy introduced in 2010 to systematically reduce costs.
Furthermore, we in 2011 outsourced various non-core
tasks including logistics as well as the operation of some of
our own shops. In addition to cost management, important
commercial improvements were implemented. By investing in market support and further professional development of account management, the operating profit from a
number of our formulas and the home and sport retail service divisions have improved significantly.”
Qualitative impetus
Euretco pressed ahead in 2011 with restructuring the organisation. A package of measures implemented on the
basis of the results of an extensive investigation into every
aspect of the business were given concrete form. “The investigation provided insight into a number of pain-points.
In 2010, as well as in the previous year, this resulted in
concrete changes to the structure and manning of the back
office. In terms of our staff, we have focused not only on
reducing the number of employees, but also on developing
a wave of professionalisation. If we want to be in a position to service retailers optimally with knowledge and
experience, we also need to have the capacity and quality
that guarantee added value. In this case, sector knowledge
alone is not enough. Proper and up-to-date insights into
the fields of HR management, marketing, sales and leadership are also essential to successful business in the year
2012. We have made considerable progress in this area.
The organisation, and not least at the account level - who
are the people that have day-to-day contact with retailers
– have had an enormous qualitative impetus. We have reduced the number of employees from 223 in 2010 to 212
in 2011, however we have grown in terms of quality.”
Digital relief
In addition, a lot of time and energy was invested in 2011 in
supporting independent retailers in building their online
profile and sales and the effective use of social media. The
basic principle here is that these initiatives need to deliver
added value to the retailers. And they find, according to an
inventory, a choice of relevant services and the use of an
appropriate e-commerce platform the most helpful. “Retailers do not have, or do not make, enough time for online
activities. There is a general lack of knowledge about these
things. But also of time: they are after all very busy on the
shop floor,” is how Bruijniks describes the situation. But
in terms of their business, they can’t afford not to get started. Because consumers are becoming completely digital.
“Relief. That is the term that best describes what we have
developed with respect to e-commerce. What this means
is that we offer those services which enable our retailers to
also be successful via the internet.”
Since 2011 Euretco has been offering its retailers a wide variety of online marketing services such as workshops social
media, e-mail and SMS services, search engine optimisation (SEO), search engine advertising (SEA) and website
and shop content.
« Euretco Wonen consumer panels reveal: invest in the sales person »
THE NATIONAL SPORTS WEEK IS
GROWING STRONGER THAN EVER,
GET INVOLVED NOW
7
New outlet
Anyone can build a web store. But that’s not all it takes according to Euretco. “You actually just need to build an
online web store like a new outlet that requires independent control,” says Bruijniks. “It is certainly not a question
of ‘just adding something on’, at least that’s not how we
see it. A web store is an outlet, albeit digital, but nevertheless it’s a separate shop. So in the the web store you have to
think about aspects such as specific routing, pricing, stock,
management and campaigns.”
During the course of 2012, with this in mind we will introduce a unique multi-site e-commerce platform for independent retailers. It will offer associate retailers and suppliers unparalleled opportunities to set up web stores and
virtual stock management. In addition to the use of highquality images, and product descriptions on their own web
store, the front page of which will be completely in line
with their own look and feel, the the retailer will behind
the front page have full benefit of the collective. “Thanks
to intensive training, our account managers have the right
knowledge and skills to provide retailers with the best
and most appropriate advice with respect to their digital
achievements.”
Information management
In 2011, a comprehensive restructuring of the digital organisation within Euretco itself was also kicked off. “We
have been working very hard on this,” says Bruijniks explaining the focus. “Our IT infrastructure is very dated.
And it developed as within so many organisations; it has
been repeatedly extended, updated and refined in line with
the user’s requirements. Until the limits have been reached
and there is no more room for manoeuvre.” Euretco was
close to reaching this stage. And that in an organisation
where the availability of good information is of vital importance. Under guidance from Kenaad B. Tewarie – director Finance, IT and e-commerce – a start has been made to
update the technical and software-related conditions, in
which Euretco can continue in the future to optimally de-
liver its services to retailers. Bruijniks: “Making information available better, faster, more conveniently and so that
it is more challenging also encourages the mutual sharing
of information. Internal communities will also be created
to this end, including links to our CRM system and social
media.” We are convinced that this extensive modernisation of the IT infrastructure will make a major contribution to strengthening the organisation.
E-commerce is not a question
of just adding something on,
because then we’re not in the
thick of it.
Too much shop space
As a board member of ‘Detailhandel Nederland’ (the umbrella organisation for all retail trade in the Netherlands),
but certainly also in his capacity as chairman of the management board of Euretco, Harry Bruijniks has for many years
strongly defended the interests of independent retailers.
That is very necessary, he maintains. “Look at the problems
caused by the domination of chain stores in many city centres and the excess of shops which the Netherlands has to
deal with. Today’s shops target 40 million consumers. And
that in a country where we need supply only 16.5 million
nationals and where internet shopping is enjoying an unstoppable advance.” The retail space available has increased
by 25 per cent over the past decade to a total of more than
30 million square metres. Consumer spending trends have
not kept pace with this development. The number of unoccupied shops has increased to around 6 per cent, or some
14,000 shops. Bruijniks: “Of course the current economic
situation is playing a role in the increasing number of shops
SUMMARY OF NEWS REPORTS 2011
« Charles van Schaik destined to become number one in running: Runnersworld enters new phase » « Lifestyle opens shop-in-
retailer
Euretco Wonen reports great success
WITH THE RIGHT COMBINATION
OF SALES CHANNELS,
RETAILERS WILL FIND THE
CUSTOMER IN THEIR SIGHT
customer
8
that are unoccupied. However factors such as the declining
and ageing population, the decrease in physical spending
in shops and the aging of retailers available to deal with the
knock-on problems also have their impact on the increase
in the number of empty shop premises.”
Greater variety
Bruijniks urges the government to take an active role: “The
government has to take responsibility so that we can over
time retain a sufficiently acceptable retail landscape. This
will require some consideration and the continued pursuit
of new builds, not to mention options for redeveloping
existing shopping areas and where necessary renovating
uneconomic space. In this context, project developers and
investors will also have to rethink their position and demonstrate their responsibility. We are on a slippery slope
and and we can’t sustain things for much longer. We need
less of the same and more variety. “The roads in to the expensive, and for many retailers inaccessible, centres are full
of opportunities both for them and for the chain stores to
make and keep things appealing. On the approach routes,
you create affordable space for a range of differentiating
shops run by independent retailers, while the consumer
knows that further along he will find all the chains have to
offer.”
“We are taking this step at a time when all the consumer
signals are on red,” explains Bruijniks. “And we are doing
this very carefully in the realisation that we are constantly
concerned with our retailers. In other words: the preparations and implementation of the merger must not disrupt the process with the customer in any way whatsoever.
To keep things close to home: it will be business as usual
throughout the alterations.”
Process in development.
Euretco and Intres both operate in the field of joint purchasing, payments and marketing, in particular in the fashion, home and sport retail trade sectors. In addition, they
are major players in the franchise formulas market. Intres
works among others with Intersport, Livera, Coach, Morgana and Libris/BLZ. The merger will be brought about
through an exchange of shares. At the beginning of March
2012, the members of Intres approved the proposed
merger between the retail service organisation Euretco
and Intres by a majority vote. This happened during an
Extraordinary General Members’ Meeting of the Intres cooperative. The Works Councils of both organisations then
started to tackle the planning. The definitive realisation of
the merger is still dependent on approval by the Netherlands Competition Authority (NMa).
Double the collaborative power
Developments within the fashion, home and sport segments and in the field of e–commerce require appropriate
modifications to the working method, structure, quality
and scale of Euretco. Intres came to the same realisation last
year. From their shared passion for retail and big ambitions
to continue delivering optimal retail services, both organisations in mid-2011 decided to investigate working together. The stated aims of joining forces are to better serve
associate retailers now and in the future and as a result
better
secure the continued existence of the independent retailer
in the Netherlands. There is also focus on the continued
professionalisation of the role with respect to suppliers.
shop formula within home stores
‘Both with respect to our
performance and Eutreco’s
financial development,
satisfaction is due’
» « Lampenier launches new web shop » « Focus on Lampenier Zwolle »
Morres Wonen
adopts
Euretco’s
Decorette formula
6 questions for
9
2012:
Growth
contracting
The Netherlands reported economic growth of
1.2 per cent for 2011. That looks promising, but
the reality is rather different. According to figures
from the CBS central office for statistics, there was
a decline of 0.7 per cent in the fourth quarter of
2011 compared with the previous year. The decline in the period from October through to December 2011 is, according to the CBS mathematicians, largely attributable to a further decrease in
consumption by households, which fell by 1.8 per
cent. However a fall in government consumption
and the export of Dutch products also contributed.
While investments increased, they were at a lower
rate than in previous quarters. On average, growth
in turnover in the retail trade in 2011 was 1 per
cent according to the CBS figures. In all quarters,
prices were higher and volumes lower. Non-food
stores yielded turnover of [translator’s note: figure
missing?] per cent. The outerwear sector also saw
turnover fall by 1.2 per cent. Home furnishings
suffered the biggest fall in turnover: minus 2.9 per
cent. The figures from CBW Mitex reveal a picture
that looks far more critical.
Uncertain consumer
Consumers have never been so gloomy about their financial situation as they were at the end of 2011. Neither are
consumers positive about their financial situation in 2012.
This low level of consumer confidence and lack of willingness to spend are extremely unfavourable for household
consumption. Dutch consumers also appear to have been
SUMMARY OF NEWS REPORTS 2011
« Christian Wijnen breathes new life into SPORT 2000 Oosterhout » « Purchasing and sales group Proms is odd man out » «
Runnersworld
represented
at Shell’s
Be Well fair
10
Sportpointshop
opened
in Asten
highly conservative with their spending. They are finding
it is not the right time for major purchases such as furniture, a washing machine or a television.
The Nibud (Netherlands Institute for Budget Information)
calculated at the beginning of 2012 that everyone would
have reduced purchasing power in 2012. Gross salaries will
increase slightly in 2012, but in net terms no one will benefit according to the Nibud. Inflation increased in January
2012 to 2.5 per cent. The decline in purchasing power
is stronger than was expected on the day of the Queen’s
speech in 2011. The higher health insurance costs and
higher than estimated inflation are the major causes. On
average, households in 2012 have anything between ten or
twenty euros through to more than one hundred euros less
to spend per month.
Joining forces
Euretco remains conservative concerning concrete expectations for 2012. This is all to do with the merger with
Intres. If this merger goes ahead, the strategic position as
well as the financial support of the combined organisation will be further strengthened. The associated synergistic benefits and growth offer excellent starting points
to face the economic developments in the short and long
term in a retail market that finds itself under pressure. This
sets the foundation for a strong organisation that is ready
to do battle with the aim of continuing to provide optimal services to independent retailers. Both organisations
need each other to secure a healthy future. Subject to impacts which may arise following successful completion of
the merger process, Euretco expects to improve operating
profit by 6 per cent in 2012.
2012: Cautious and realistic
Expectations for 2012 vary per sector in the retail trade.
Home furnishings will again face difficult times. The
deadlock in the housing market is expected to make itself
felt on turnover in this sector in 2012 too. With people
moving home less, there will be no spending in this area.
This will not be fully offset by investments in furnishings
or maintenance or improvements to existing homes. Sales
in the retail trade of textiles, clothing and footwear are expected to fall slightly in 2012 because consumers are wearing clothing for somewhat longer. Here too, budgetary
arguments play a role. In addition, the shift in retail trade
spending via the internet and mail order companies is becoming increasingly evident. It is expected that the decline
in the retail trade sector which started some years ago has
since 2009 meant a decrease in turnover for shops in cities.
The increasing number of empty shop premises is visible
evidence of this.
From global Tupperware parties to three diversified shops
» « Impulse members are friends of business »
Lots of new
sport 2000
outlets
11
Bram Huibers,
Chairman of the Euretco
Supervisory Board:
‘As far as I am
concerned,
joining forces
is essential’
“Behind the scenes, 2011 was dominated for me
and my colleagues by investigating the possibilities of a merger with Intres. The topic was not new
on the agenda; there has been regular review as to
how desirable a collaboration is. Under the current
market circumstances, it is more a question of the
need for the two biggest players to join forces.”
“If you dare to take a realistic look at the situation we find
ourselves in retail within 2012, you can only conclude that
if organisations such Euretco and Intres were to do nothing, over time they would face a decline in margin and thus
revenue. Nevertheless there are limits to what retailers on
the one hand and suppliers on the other have in space and
are prepared to give. So if you want to focus on continuity,
you have to achieve growth. And it needs to be in a different way than simply increasing retailers’ contributions. At
a certain point there is no more room for manoeuvre.
Material gain can rather be found by seeking synergy between activities and thus saving costs. There are a number
of concrete opportunities when you merge two organisations with a comparable role. From IT and accommodation
through to HR costs and expenditure in the field of marketing and advertising. Furthermore, you together become a
body of a scale that also has its effects in the market.
After all: for suppliers you are an even more significant
factor of importance, with all the positive effects that
go with that. And this is certainly also true of the labour
market: retail and management talent will soon have to
make a serious choice between a chain and the country’s
largest retail service organisation and formula agency. He
or she can no longer ignore you’
“I was in favour of the merger plan right from the start of
the negotiations in the knowledge that around us – and and
SUMMARY OF NEWS REPORTS 2011
« AVEK’s director Roelf Kok: Designing together with retailers brings better results » « Sportpoint shop opened in Asten » «
Babyface
opens first
shop-in-shops
within V&D
12
often going relatively unnoticed – chain stores are continuing to grow, whereas the number of independent retailers is
declining year on year. It is important, from the passion for
retail that we at Euretco have within us, to continue to provide optimal service to the people who do it well and who
favour a variety of shops in our country. One task we certainly must not lose sight of: grouping together purchasing
and sales power is below the line the fastest to pay for itself.
“All in all, I see nothing but benefits from the merger between Euretco and Intres. Not least, I am looking ahead to
the intended merger of all the departments and people in
Hoevelaken. We’ll have to grin and bear it when we leave
Breda and Houten. But we’ll soon be sitting together in one
office where we will also be able to organise lots of big
events. From trade fairs to training sessions. I am convinced
that this will also play a social role and help to further professionalise and intensify our contact with the retailers.
‘If you want to focus on
continuity, you have to
achieve growth. And
in a different way
than simply increasing
retailers’ contributions
The main thing is that we are in a phase with the organisation where we cannot escape an increase in scale. At the
same time, this offers plenty of opportunities. And that
after all is what binds us as pure retailers: to be entrepreneurial, discover prospects and act on them.”
“Ik heb er alle vertrouwen in, dat het proces van samengaan en integratie uiteindelijk zijn vruchten zal afwerpen.
Het zal zeker voor medewerkers wennen zijn. Vooraf is
immers duidelijk dat de culturen op onderdelen verschillen. Dit laat onverlet, dat we onszelf alleen op deze manier
het uitzicht bieden op een gezonde toekomst voor beide
organisaties en de bij hen aangesloten ondernemers. Dat
vooruitzicht maakt dit en komend jaar tot een uitdaging
voor ons allemaal.”
Bram Huibers,
Chairman of the Supervisory Board of Euretco
Exclusive collaboration between Dyanne Beekman and Euretco launched successfully
»
Euretco Wonen
Liesbeth den Boer:
‘I am proud that my
father has been able
to take a step back’
consumer pane
Invest in
the s ale s per son
ls reveal:
!
13
Retailservices
Fashion: capricious and
unpredictable
Unfortunately, figures don’t lie: 2011 was a disappointing year for the fashion sector. Revenues overall were 6.2
per cent down on the previous year, when the decline was
scarcely 0.1 per cent. Women’s fashion yielded 7.9 per
cent, men’s fashion 3.7 per cent, baby and children’s fashion 5.3 per cent and body fashion 5.6 per cent. The industry organisation CbW Mitex attributes the disappointing
figures to a combination of economic factors and unpredictable influences such as that of the weather. In addition,
it seems that while a lot of consumers come into the shops
to look around, they are buying less. The decreasing interest in brands is also thought to be playing a role.
Euretco Fashion
Turnover within the Fashion segment stayed at the 2010
level, which is substantially better than the industry as a
whole. Across the board, there were no big falls within the
segment. This is in part the result of the considerable effort
focused supporting retailers in their fight for market share.
New retailers and suppliers also joined in 2012.
More than trends
The annual Euretco Fashion inspiration event for retailers
and suppliers took place on 31 October 2011 at the Rijtuigenloods in Amersfoort. Some 400 visitors took inspiration there and talked to one another about passion for fashion retail. The “pure” theme which was central to the 2011
event was deliberately chosen. In turbulent times with
little of the traditional security, we are looking for a new
footing. Consumers see through a nice story, what they
want is purity/authenticity. Not a mask, but transparency.
Euretco Fashion challenged retailers to return to the core of
the profession and above all to remain true to the original
drivers. Rene Boender confirmed this picture in his presentation on Generation Z and Jos Burgers challenged the audience to get right alongside the customer. The heart of the
programme came in the shape of a discussion led by Mathi-
SUMMARY OF NEWS REPORTS 2011
« More than Trends was all about pure: ‘Whatever you give you get back’ » « Runnersworld Best Chain of Sports Shops » « Q
MORE THAN TRENDS ALL ABOUT PURE
‘Whatever you
give you get back’
14
Purchasing
–
budgeting is
a question
of taking
responsibility
js van Nieuwkerk. He went in search of the power and drivers behind these thoroughbred people of fashion: opt for
authenticity or individuality, be really good at something,
modernise, have courage and persevere. These are the concepts that in 2012 2012 dominate in the formula for success.
in fact been working on this for some years together with
Intres. Christine Boland – trend analyst and consultant to
the fashion sector – held the seminar Trends & Mindsets
for an attentive audience of fashion retailers, delivering a
fascinating and inspiring story about women’s fashion in
2011.
Dyanne Beekman
ERM
An exclusive collaboration has been agreed with stylist
Dyanne Beekman, known as the presenter of the TV programme Looking Good. In her own words, the stylist consciously elected to collaborate with independent retailers,
‘because they have a passion for the profession, know the
customer best and it is precisely they who offer a high level
of service’. The “coat to tote” collection forms a basic wardrobe for women with items that can be combined with one
another. Each evening, Dyanne’s fans receive a tweet with
clothes advice for the following day. Dyanne ensures
plenty of publicity in the local media and also organises D
Nights in collaboration with retailers to support the introduction to the customer.
Organisations which took part in the Euretco Retail Monitor – the unique benchmark tool developed by Euretco on average generated turnover comparable with 2010, as
the result of a price increase. To achieve this, they had to
pull out all the stops. Lots of advertising, campaigns and
themed events are needed to bring any sort of traffic at all
into the shop. The number of participating sales points
again increased. The monitor now represents consumer
turnover of around 350 million euro and is rightly the
sector monitor.
Mode Alliance
Seven large-scale shops who are associates of Euretco have
joined forces and in November 2011 they launched the
Mode Alliance at the Heineken Music Hall. No fewer than
1500 employees and customers immediately put the Mode
Alliance firmly on the map. The aim of the Alliance is to
jointly organise high-profile events which aim to make
a day out in fashion a concept. By joining forces in shared
marketing, the Mode Alliance is in a better position to
achieve this. The planning for 2012 includes an event to be
organised with the magazine Margriet. The activities will
involve not only customers but employees as well. They
need to be able to transfer their enthusiasm to customers
and they can do that best by joining in. The initiators see
the Mode Alliance as a mark of quality; customers are assured of a certain quality.
In addition, Euretco has signed up for targeted trade fair
concepts such as Vrouw&Zo and Man&Zo. Euretco has
Q&A researcher Frank Quix on Retail 2000: It’s going faster than we predicted’
»
Collaboration
between
Dyanne Beekman
and Euretco launched
successfully
15
Private labels
Support for traditionally organised private labels is under
pressure although the profitability of the labels in general is
still ahead of the market average. In the light of this market,
Euretco is focusing in the private label field increasingly on
reducing the risks for retailers and responding ‘item-wise’
to the latest trends. Good examples are the successful introductions of Basefield and Commander in collaboration
with Intres. Retailers can make their own customised selection from the very wide range. In women’s fashion,
there appears to be a return to the eighties. The latest trends
and just the right item at the right time lead to success with
the customer. Last-minute savings and additional purchases determine success, but are also time-consuming.
Euretco fashion provides support in various ways. Via the
must-have Net, we provide information about what is on
offer from suppliers in the short-term. We also pro-actively look at home and abroad for items for which there is
demand and, where necessary, have these manufactured.
Under the private label (No)Frills, detailed items are manufactured to meet the latest developments. Items are delivered on average 3 months after the first sketch which means
they have an optimal connection to the consumer.
E commerce
Contrary to physical retail sales, online clothing purchases
are increasing and an online presence as a retailer has now
become a fundamental condition. The choice to do this via
a web store is not easy. Experience shows that “web store
operations” require new disciplines both in terms of logistics as well as in terms of online marketing, and also bring
challenges with respect to quality assurance, cost management and stock efficiency. Euretco in 2011 developed a
model to offer retailers the opportunity to exploit online
opportunities and focus on online marketing of their shop
as a brand, while the back-office logistics, despatch and
stock management are handled via a professional external
partner. In particular, the aim is to get the speed of sales of
stock up to a standard level by placing this centrally in the
mutual collaboration between retailers. The model provides relief to retailers through collaboration. In July 2012,
the first (men’s) fashion retailers will go live with their
own web store using this model.
Home: still not easy
The home sector, according to market figures from CbW/
Mitex, has for the third year in a row faced falling sales. The
SUMMARY OF NEWS REPORTS 2011
« Ros Zonweting & Decorette Nijkerk selling atmosphere and leisure » « SPORT 2000 founder at the League of Experience » «
LifeStyle opens
shop-in-shopformula within
home stores
16
decline in 2011 was 3.0 per cent. Specialist sleep businesses reported the biggest fall: -7.9 per cent. Specialist furniture businesses managed to limit the decline in turnover to
0.3 per cent. Home textiles businesses saw their sales fall
by an average of 0.4 per cent. December was an excellent
sales month for the sector, however the first two months
of the last quarter certainly did not reflect the same picture.
Analysis of the market shows that consumers are widely
turning to the internet, but are then consciously selecting
a specific shop because of experience, perception and purchase.
Euretco Wonen
Sales from the Wonen division developed in line with the
market. Just as with colleagues in the other divisions of Euretco, Wonen is also making great strides. For example Euretco shared its knowledge and insights with retailers at the
‘Euretco Wonen etaleert’ (Euretco Wonen on Show) event.
The show was held at the Home Trade Center in Nieuwegein. Central were the topics ‘learn to think differently’,
‘collaboration through the chains’ and ‘be open to combinations of sales channels’.
Growth and repositioning
Concrete steps towards growth have been taken in part
with expansion of the ‘Slaapkenner’ (Sleep Expert) formula
with 5 dealers who, note, joined in the same month. With
Nox, Førss and Optisleep, ‘Slaapkenner’ offers three exclusive own brands. Other initiatives included the introduction of the own brand relax armchairs for the Woonvisie,
Emotions and Flitspool home groups, the complete repositioning of these 3 concepts, the opening of Lifestyle shops
in the shop within home furnishing stores and the launch
of a number of new own brands, including ‘Topdream and
‘Bij Mij Thuis’.
The objective for Vivante in 2011 was to make choices
in the context of quality improvements. For a number of
points of sale this meant opting for quality above quantity. A completely new communication concept has been
designed in which the local hero is central and the content
and service under the own brands have been improved. The
formula here is clearly to grow in number in 2012.
« Chantal Riedeman, founder of Shopology: turn 100% of visitors into 100% customers » « Euretco’s Arja de Boer: ‘Shopology works’ »
Lampenier
launches
new
webs shop
Ros Zonwering
and Decorette
Nijkerk
selling atmosphere and
leisure
17
Regional evenings and benchmark
Under the title ‘How to surprise the customer’, Euretco
Wonen successfully organised 4 regional meetings. A total
of some 60 retailers were represented. The evenings were
held at retailers’ own shops. The participants interactively
helped one another with new, inspiring ideas; the retailers
who attended scored the evenings with an 8 on average. A
good reason to adopt this tool even more actively in 2012.
Following the lead of their colleagues from Euretco Fashion, Wonen developed its own benchmark tool to replicate the successful Euretco Retail Monitor. With the tool’s
help, individual retailers can compare their annual figures
against the average figures in the sector as a whole. The retailer thus gains clearer insight into the various core values
such as gross profit margin, sales per square metre, stock ro-
tation rate and average sales per employee. This allows the
retailer to compare himself with peers in the same sector
and if required manage or direct business operations
on the basis of the outcomes. With better insight into the
relationship between costs and turnover, retailers can thus
achieve a better balance within their business operations.
The more pro-actively they operate on the basis of their figures, the more alertly they can react and as a result capitalise on opportunities in this difficult market.
Online presence
In the home segment too, the internet as a means of orientation and as a sales channel is indispensible. Retailers from
the design platform ‘Het Origineel’ have therefore decided
together with Euretco Wonen to initiate a web store activity. The primary aim is to optimise the online presence of
these retailers with design collections from their physical
shops. This web store activity must meet the needs and
wishes of today’s consumer to view and ultimately purchase designer furniture extensively online. The core of the
concept: Efficiency and collaboration in the background
while retaining your own identity and activity in the forefront. In 2011, a start was made in developing this shared
web store platform. Euretco takes care of and supports the
development as well as facilitating the content.
Successful collaboration
As part of making the collaboration between Euretco
Wonen and the InternationaleMeubelGroep (IMG) more
intensive, (IMG) a policy has been developed in the field
of supplier management whereby the synergistic effects
are able to be realised as optimally as possible. One initial
project in this context was successfully completed in 2011.
The results of this project have confirmed to both Euretco
Wonen and IMG that further intensification of the collaboration will ‘pay off’.
SUMMARY OF NEWS REPORTS 2011
« Euretco director Harry Bruijniks on family companies: ‘In order to know where you are going to, you have to know where you ha
Purchase and
sales group
Proms is
odd man out
18
Sport: a difficult climate
2011 was a poor year for sport. Not so much because of a
notable decline in sporting performance, but certainly
for many retailers of sportswear and sports equipment. In
2011, the sector faced a climate that had a crucial impact
on sales figures. For example there was no winter weather
at the beginning of 2011, the spring was quite warm and
the summer ended up being a washout. The year came to
an end with no real winter to speak of. Consequences: reduced demand for sportswear and equipment in the very
periods when sales need to be achieved. And, as we know,
at the start of 2012 there was a sudden severe freeze. Which
of course meant an enormous surge in the sale of skates.
However it was too late for the retailers’ 2011 results. In the
meantime, the sector is undergoing a number of substantial
changes. Research indicates that the growth from the sales
share from web stores is unstoppable. In the meantime,
margins are also under pressure as a consequence of rising
raw material prices and increasing pressure from discounts.
Increasing numbers of independents are failing or are joining chains and joint supply organisations. The fact is that
within the sports sector, big differences in results are evident. Retailers who have choices within their range perform better than generalists.
Euretco Sport: improved sales
Euretco Sport, in which independent retailers as well as
retailers who are associates of Sportpoint collaborate,
achieved an increase in turnover in 2011 compared with
2010. At the same time a large sports retailer, Telstar which
has seven megastores, joined. The collaboration with
Sportpoint is working satisfactorily. Sportpoint is an entrepreneurial group which brings together independent
entrepreneurship and collective power. The group comprises 80 successful sports retailers with a high return on
capital invested. The entrepreneurial group associated
with the Sport retail service division grew by six in 2011
to a total of 103.
ave come from’
» « FFranklin van Blijdestein: believe firmly in the next generation »
Integrate
the best
of two
worlds
NIPIUS MOVES FROM VME
TO EURETCO WONEN
Custom-made
in Maasdijk
19
Formules
Steve Evers
director of Formulas:
“Retailers need to look at those
things that we can influence.”
Formula development and Healthy Growth with
a capital ‘G’. This, as far as director of Formulas
Steve Evers is concerned, is what it’s all about day
in, day out. Growth as a means, not as an objective. Both for retailers and franchise-holders, as
well as for Euretco. “In order to create optimal
conditions for ourselves in all areas. “From this
fundamental premise it was clear that in 2010, we
needed to continue full steam ahead with the line
we had taken of restructuring and strengthening
our services to our retailers who use our formulas.
The focus in 2011 was very much on exploiting
and extending internal synergies. Making use of
each other’s knowledge, expertise and networks in
other words.” And that is what happened. However the climate in which these steps had to be taken
was not at all favourable. Quite literally when
it c a me to t he weat her gods col labor at i ng .
And in figures when it comes to the economic
conditions.
Effective strategy
There was a considerable improvement in operating profit
from the formulas in 2011 compared with 2010. The results from Decorette recovered from a break-even level to
return a good profit, partly due to a considerably reduced
cost basis. Runnersworld, despite exceptionally difficult
market conditions, managed to maintain profits. Lampenier was below target. SPORT 2000 finished below the level
of the previous year, caused largely by the tough market
conditions. “The strategy rolled out in full in 2011,
which is based on formula expansion, healthy growth, excellent operation and the exploitation of internal synergies, did not fail to have its impact during the year under
SUMMARY OF NEWS REPORTS 2011
« Max Dohle of Hoogeveen: ‘Most achievable is succession by external retailers’ » « Bakers Zitmeubelen: ‘Family companies ar
SPORT 2000 FRANCHISE COUNCIL CHAIRMAN JURRIEN KRUIDHOF
Runnersworld
enters
new phase
20
#
‘If you work
together, the
friendship will last’
review,” says Evers. “We are according a lot of attention
to the management side of running a business by the associated independent retailers and franchise-holders. To
achieve excellent operations, you very much need relevant
information. So we also need access to such up-to-date and
correct information. We are therefore big supporters of introducing, for example, a central tills system. This helps
us to actively monitor the most important indicators and
use the data analysed to our joint advantage.”
Circle of influence
Steve Evers is a keen advocate within Euretco of taking a
different view of retailers’ attitude with respect to everyday reality: “We are a bit too quick to establish that we
have no influence on certain things. We can’t do anything
about the recession, or about the debts crisis, or about declining consumer confidence. At least that is the attitude at
the moment. And we seem then to be satisfied with our lot.
My vision is that you have to look at those things you can
in fact influence. Because knowing that there’s little you
can do about some things is ‘nice to know’, but it doesn’t
help you to move forward. What can you address, what can
you influence from your position, your role? In summary:
what is your circle of influence?” If Evers carries this vision
through to practice in shops, he will come to things such as
product availability, a ‘rigid’ shop, tailor-made collections
and stringent stock management.
Runnersworld: plus and minus
ers who left the Euretco collaboration. We were ultimately
able to draw a line under this period. Since then, under the
inspired guidance of new management filled with fresh fervour and supported by the successes, we have gone about
maintaining high levels of performance.” Runnersworld,
with 23 shops, reported a robust increase in sales at the end
of 2011.
Running is, with some 4 million practising the sport, the
fastest growing athletics discipline in the Netherlands. The
need for expert, professional advice on clothing, footwear,
training and running techniques and the like is also increasing. Runnersworld – which has been sailing under the
That there’s little you can do
about some things is ‘nice to
know’, But it doesn’t help you to
move forward.’
Within Runnersworld there was in 2011 an almost unstoppable dynamic. “A lot has indeed happened from the
very positive through to less pleasant developments. To
begin with: autonomous turnover again grew vigorously.
There was further good news when Runnersworld was for
third time in a row voted the best retail chain in the sports
sector in our country.”
What was bad, according to Evers, was the enduring discussion which was held with a number of the initial retail-
re a step ahead’’
» « Build objectivity into your succession planning » « Jaring de Wolff Furnishing” ‘Our shop is the brand’’ »
For the third time
Runnersworld
best chain
of sports
shops
21
Euretco flag since 1994 – offers the right response. “The
formula works excellently, not least thanks to the specialist
and professional engagement of retailers and their staff.”
The management of Runnersworld will in 2012 and the
years ahead focus on controlled growth. We know from research that there are completely untapped opportunities in
the ‘Randstad’ area. We are also in contact with a number
of retailers who are very serious in their ambition to open
new branches. ”In the near future, Runnersworld will increase its number of outlets from 30 to 35. Also in the retail
services division, Euretco will actively strive for collaborations within the formulas.
reported a much less severe decrease in sales and thus performed better than the market. In the hardware category,
sales for SPORT 2000 remained at the 2010 level, which
is good to note. In other segments, the weather was the big
killjoy during the major seasons. Evers: “You can work as
hard as you possibly can on your own structure and ways of
operating, but at the end of the day it’s all about getting the
consumer over the threshold. And getting the consumer to
make purchases. And our retailers were left in the lurch a
little in this respect. The weather is a crucial factor in business planning in the sports sector. In addition to the basic
sales, there are always two peaks: in the winter when cold
weather means skating and in the summer for swimwear
SPORT 2000: the wrong weather
and beach fashion.” 2011 brought some dramatic disapThe total sports market in the Netherlands reported a 9.2 pointments in this respect. We saw a glimpse of summer
per cent decline in sales for 2011. SPORT 2000 as a whole in May; after that it was predominantly wet and cool. Sales
SUMMARY OF NEWS REPORTS 2011
« Slijkhuis Interieur Design: ‘We are driven by passion’ » « Van Schuppen Wooncentrum: ‘Customers don’t have a number, they
Lodewijk Mode voor Mannen:
Runnersworld’s
success rolls
out further
22
‘The best retailers
are born in times
of crisis’
of winter clothing, skis, skates, moon boots and such like
were far below expectations both at the start and the end
of 2011 because of a lack of snow and ice. “Retailers whose
basic turnover is from a less functional range suffered less
from the impact of the weather. Retailers who compiled
their offer carefully and took this into account to some
extent had a lucky escape in 2011. Anyone largely dependent on fashion and seasonally-related articles such as skates
and beachwear conversely took a hard hit. A number of
SPORT 2000 retailers also faced these problems, but fortunately the majority did not.”
In 2011, the leadership of SPORT 2000 was handed over to
a new management team. In addition, the complete logistics process was outsourced. This has enabled the number
of deliveries per week to the various shops to be increased.
Furthermore, virtually all the own-name shops have been
sold, as planned. Only in Gouda is SPORT 2000 still under
direct management; that branch is currently being used as
a test bed for new concepts and developments. In the year
under review, the FreeBees savings programme was for the
first time applied within the formula. Consumers can cash
in FreeBees at SPORT 2000 shops.
Furthermore, in collaboration with premium suppliers, a
shop-in-shop was implemented in fifteen shops in 2011.
This has been so successful that extending the scheme
across several shops is now being considered. At the same
time, there has been intensive work on the web store project. Finally, SPORT 2000 also needs to make a dynamic
move from ‘bricks’ to ‘clicks and bricks’ – including in the
form of a functional web store and successful commercial
tactics.
y have a name’’
The merger between Euretco and Intres has forced us
to make a choice. The Articles of Association from both
these international sport organisations do not permit both
the sports formulas to operate within a single retail service
organisation. In addition, the Netherlands Competition
Authority (NMa) has determined that it is not desirable to
have both formulas under one roof. If the merger actually
goes though, Euretco will choose the Intersport formula.
“Intersport and SPORT 2000 both have a strong position
in the Dutch market. These are powerful formulas with a
robust market share, firmly anchored in the Dutch sports
retail landscape, with every opportunity of a successful
future. Ultimately, Intersport’s more dominant market position was a deciding factor in the decision-making,” says
Evers.
‘Intersport and SPORT 2000
both have a strong position
in the Dutch market. They
are powerful formulas with a
robust market share, firmly
anchored in the Dutch sports
retail landscape, with every
opportunity for a successful
future’
» « Van Tilburg mode and sport: ‘The feeling that you can mean something better for a customer. That’s what counts’ »
‘There isn’t much
that beats going
shopping with
your daughter’
23
Decorette: spectacular turnaround
The Decorette retailers of course also faced a stagnating
home market, and more specifically the further decrease
in the number of home moves. Home furnishings is likely
to be a sector that is highly sensitive to the economic situation in the next few years. Nevertheless, the formula is reporting good results. Following a difficult start, Decorette
recovered in 2011 from a position of having fallen behind
and managed to turn things around. This was in particular thanks to the change in strategy, whereby price is
temporarily being used as a weapon in the fight for consumer favour. “The course was determined at the end of
2010 with implementation following in 2011: Decorette
wanted to shake up the market with a price argument it
has never used previously. The message was conveyed in
a major advertising campaign.” A drastic change of course,
as Evers too was aware when he personally took the helm
for the formula within a year of joining. “I cannot deny that
‘Decorette symbolises quality
and professional advice.
Campaigns and offers were
not really ‘Decorettes’.
SUMMARY OF NEWS REPORTS 2011
there was considerable resistance from retailers. Decorette
symbolises quality and professional advice. Campaigns and
offers were not really ‘Decorettes’. But I wanted to create
some temporary movement. Because wherever all sorts of
impacts outside your sphere of influence, such as the stagnating housing market, threaten to define policy, you have
to take action for yourself on the things where you can do
something. Recognition of the name was excellent, but
that wasn’t what it was about. However consumers look at
the price as well. And this was an area where Decorette had
never really been prominent. The price campaign is temporary, but at a certain point we need to return to the original
brand values.”
Evers praises the retailers, along with his core team which
acted more than superbly in dialogue with the retailers. He
expects that over time, the focus can again shift away from
price, and the balance with quality and expertise can be restored. “We should not want to move away from price totally as a tool. The consumer is set on it; as long as they care
about price, we also need to use it.” For the Decorette formula, growth is a tool but not an aim in itself. As a result of
this, there will in 2012 be a focus on further optimisation
of the retailers.
Lampenier: further roll-out
In comparison with 2010, Lampenier still managed to realise an increase in turnover. That is a great achievement
in an extremely difficult and declining market. A market
in which the number of specialist providers is declining
year on year and the competition, in part from builders’
merchants and the internet, is strongly increasingly. “The
number of shops in the lighting sector has fallen dramatically in the past years: from 500 a few years ago to fewer
than 300 now. Causes: succession issues and strong competition from other sectors such as the builders’ markets.”
Lampenier of course also faces the changing market condi-
« Lodewijk Mode voor mannen: ‘The best retailers are born in times of crisis’ » « Tuerlings Fashion Group: From jackets with ho
ROETGERINK MODE, THE FASHION STREET IN TWENTE
‘Dad, when can
I work behind
the till?’
24
tions. The new shop concept tested in Katwijk is working
well but is too expensive for most retailers. Evers: “We
considered the consequences. The result: we will gradually
move across to a simpler business model in which the internet will play an important role. On the one hand, we want
to further roll out Lampenier as a concept, on the other
hand we are going to introduce Lampenier as a shop in the
shop in a number of furniture business run by our retailers who are active within our Wonen division. In addition,
we are giving priority to e-commerce applications as part
of which physical and digital efforts will reinforce one another. What you might imagine here is that the consumer
looks for a fitting on the internet and within the Lampenier
environment is directed to a suitable choice in the range.
This all happens on a central web store. At the end of the
process he can then select his own branch. At that point he
is linked to the nearest Lampenier retailer.”
The first shop in shop has now opened in Vlissingen.
Autonomous branches opened their doors in 2011 in
Zwolle and Drachten. The web store has also been updated. “Lampenier is within Euretco the example of a formula where even with very few resources and people, great
things are being achieved. 2012 will be an important year
for Lampenier. In the planning is further investigation into
the opportunities for more intensive collaboration with
Decorette.”
Development
In 2012, Evers wants to keep all his staff’s energy focused
on maximum support to the retailers. We want to facilitate
them to reach micro-level. We have in recent times invested heavily in our management’s skills and knowledge. The
knowledge and expertise of those colleagues concerned
are raised systematically. As a result we have shifted from
being a purely product-focused organisation involved in
development to become a complete retail partner.”
Quick’s managing director
John Ouwejan:
‘You
generate
traffic
together’
» « Chris Koot agenturen: remain independent of the banks »
H
to am
th be
e rg
R
oy mo
al d
ho e p
us ur
eh ve
ol yo
d r
orns and bells to a stably growing family company
25
Wholesale
SUMMARY OF NEWS REPORTS 2011
« Ten Wolde of Krommenie: From manufacturing via small business through to casuals » « Chairman Hans Biesheuvel, SME Ne
Profile:
A special on
the backbone
of the
Dutch economy
26
Euretco Label Company (ELC) reported a slight
improvement in operating profit in 2011.Turnover increased by almost 15 per cent compared
with the previous year. It was primarily the increase in turnover from the LCKR and Babyface
brands which contributed to the positive result.
The addition of the new brand Blue Rebel – a jeans
brand for children – also contributed to the pleasing figures for 2011. However the margin in 2011
came under heavy pressure from increased raw
materials prices and the foreign exchange results.
As a result, the increase in turnover did not unfortunately result in the same increase in profits.
The so-called Flash programmes were well received in the
shops. ELC will focus increasing attention on this with the
aim of reaching the retail trader at the right time with the
right articles and collections. There is also demand for this
from the shops. Certainly now the market is under pressure, the retail trader wants to be in a position to add products during the season. This is achieved with ELC through
Flash collections from the LCKR and Blue Rebel brands.
Babyface
Babyface is a strong brand in the current baby market, both
nationally and internationally. Babyface opened the first of
a series of ‘shop in shops’ within V&D. In August 2011,
The Hague experienced the first one. The second one will
open in September in Nijmegen. ‘Shop in shops’ are also
being developed for the independent retailers.
Blue Rebel
In mid-2011, ELC entered into an intensive collaboration
with a logistics partner Promese in Breda. The entire physical logistical process is now outsourced. This results in
optimisation of this process as well as new opportunities
in terms of flexibility and e-commerce business for retail
traders.
LCKR
A lot of time and energy has been invested in the experience
aspect of the LCKR brand. During the year under review,
the logo and the house style were completely revised. New
brand values were defined and a new communication plan
devised that will be expressed among other things in folders, POS material and the look and feel of the website. The
results will be visible on the shop floor starting from the
new 2012 collection.
etherlands: The innovative power of retailers
Blue Rebel is, together with the trademark rights for the
children’s brands Rags and Eager Beaver, accommodated
within ELC. Blue Rebel in particular has great potential;
this is also evident from the initial results. At the beginning
of 2012 there were 140 points of sale in the Netherlands,
including de Bijenkorf with 7 branches.Business abroad are
also looking on.
‘We are developing
to become a complete
retail partner’
» « Decorette is forging ahead with new campaign »
Max Bakers, Bakers Zitmeubelen:
max dohle of hoogeveen
‘Most achievable
is succession
by external
retailers’
‘Family
companies
are a step
ahead’
27
Euretco achieved a good year in 2011. Despite the
unfavourable economic period, we reported normalised EBITDA of €8.7 million. This amount excludes one-off merger costs which are chargeable
under 2011. The result represented an improvement in comparison with 2010 of €2.1 million,
or 31%. In 2010, normalised EBITDA was €6.6
million. Net profit was €2.2 million. The Euretco solvency ratio rose further in 2011 to 45.1%
(2010: 40.0%).
Financial
data
Standing by the retailer
“In 2011, retail services more emphatically gave shape to
our responsibilities towards our independent retailers and
franchise-holders,” says chairman of the board Harry Bruijniks. “For example we have put a lot of energy into supporting retailers who faced economic difficulties, or the
threat of them. Where possible, we helped them fight to
survive and return to a promising position for the future.”
Bruijniks maintains that Euretco is adopting a realistic and
honest position in these circumstances: “We analyse clearly and are honest in our assessment as to whether there is
a future or not. And retailers can expect that of us. It also
means standing by the retailer. And not, as a lot of banks
and other financiers often do: giving retailers an umbrella
when the sun starts to shine but taking it away again when
it starts to rain.” Bruijniks talks of ‘a professional duty of
care, but it is an obligation’.
New digital world
In addition, Euretco last year actively facilitated and supported the associate retailers in developing and applying
modern marketing techniques, such as social media and
e-commerce. “We have, after making an inventory of our
ICT infrastructure in 2010, last year worked intensively on
SUMMARY OF NEWS REPORTS 2011
« Euretco Wonen introduces new private label seats » « FreeBees savings programme has SPORT 2000 as new partner » « E
Slijkhuis Interieur Design
‘We are
driven by
passion’
28
creating a comprehensive digital platform for both retailers and suppliers. After all, the parties concerned all have
an interest in being digitally connected and thus reinforce
one another,” says Bruijniks. In the autumn of 2011, retailers had the opportunity to become familiar with the set-up
and lots of interesting opportunities offered by the digital
platform. “Via special training courses, the first retailers
became familiar with what for many of them was the completely new, but at the same time challenging and opportunity-rich digital world.” This process will be continued in
2012 and will run for the entire year as a minimum, even
just to develop the system itself which will then offer new
options and opportunities.
With an eye on changes
In addition to giving day-to-day substance to the partnerships with retailers, maintaining and strengthening relationships with suppliers and – where necessary – offering
concrete support in adverse times, there is intensive work
in preparing for the proposed merger with Intres. “Of
course any such process requires an awful lot of consideration, energy and research. We have passed the exploratory
phase; the feeling each way is good since we are now talking
about completely concrete aspects such as finances, limiting conditions, structure and organisation.” Bruijniks is at
the moment not prepared to issue any statements about the
outcomes. “Of course developments as part of this process
also have a direct impact on the sales figures and profit for
2012. The members of Intres gave the merger the green
light at the beginning of March and both works councils
have agreed the plans. Definitive completion ofmerger is
still dependent on approval by the Netherlands Competition Authority (NMa). It is expected that the merger will be
completed this spring,” says Bruijniks.
Euretco Finance
The operating profit of Euretco Finance was better during
the year under review than one year previously. The biggest
reasons for the improved results are an increase in revenues
Euretco Wonen reports great success
from payment discounts and penalty interest and reduced
additions to the debtors’ provision. While efforts will continue to focus on further reducing the balance of accounts
receivable, including loans, a stabilisations is now being
endorsed. The approach of entering into dialogue with the
retailer at an early stage is bearing fruit. However current
market conditions mean that a number of debtors will have
to pull out all the stops if they are to pay Euretco on time.
The number of retailers in payment areas - which means
with a balance beyond 30 days – is hardly becoming less. It
is evident that a number of retailers have clearly already
eaten into their capital in 2009 and 2010. For them, the
‘lean times’ cannot last much longer. In the Wonen division, it seems the‘pain threshold’ has already been reached.
However we are now seeing more fashion and sports retailers hit problems. The collaboration with commercial account management was therefore further intensified in
2011 in order to achieve timely solutions with the retailers
in question.
Internal organisation
As the result of extensive research carried out in 2009 and
2010 into quantitative, but primarily also into qualitative
HR needs in the medium term, a start was made in 2011
with further professionalisation of the commercial teams.
In particular when it comes to the balance between thorough sector knowledge and experience and broad management skills – including in the fields of HR policy, administration and marketing – Euretco needs a strong framework.
After all, retailers and Euretco employees not only need to
speak the same language, the intensive contacts must certainly deliver added value for the retailers.
At the end of 2011 Euretco had 212 employees. This was
11 fewer than a year earlier (-5%), when there was already
discussion about reducing staff numbers - at the time by no
fewer than 30 FTEs.
» « Exclusive collaboration between Dyanne Beekman and Euretco Fashion retailers »
Van Schuppen Wooncentrum
‘Customers don’t
have a number,
they have a name’
Woninginrichting Jaring de Wolff
‘Our shop is
the brand’
29
Key figures Euretco Holding B.V.
2011
2010*
1.293
226
1.725
1.408
242
1.875
725.121
739.729
34.433
35.693
standardised operating result
EBITDA
standardised EBITDA **
5.251
6.302
7.608
8.659
2.538
4.234
4.923
6.620
net result
2.239
596
group assets
capital base
balance sheet total
property, plant and equipment investments
depreciations cash flow
13.564
33.464
74.247
952
2.357
4.596
11.432
29.595
74.049
394
2.385
2.981
solvency ratio
45,1%
40,0%
personnel expenses
15.324
19.165
212
223
number of entrepreneurs
including formula participants
number of formula participants
number of affiliated shops
turnover (excl. VAT)
gross results
operating result
number of employees (FTE)
amounts are in thousands of euros
* figures of 2010 are made comparisive
**Normalised in 2010 for the provisions for the restructuring process, among other things,
and for merger costs, for example, in 2011
SUMMARY OF NEWS REPORTS 2011
« Slaapkenner adds 5 top dealers to its network » « LCKR updated » « SPORT 2000 intensifies overall strategy »
Tuerlings Fashion Group
FROM GENERATION TO GENERATION
From suit jackets with
all the trimmings to a
consistently growing
family company
‘‘The idea that
you can make
a difference for
a customer is
what counts’’
30
31
Euretco Holding B.V.
Stadionstraat 2
NL-4815 NG Breda
T +31 76 578 57 11
[email protected]
www.euretco.com