Anniversary for EK Großeinkauf

The Bielefeld operation has made a brilliant start to this anniversary year when all its business segments are taken into consideration. Sales increased by 9.5 per cent in the first quarter, thus continuing last year’s positive tendency and growing contrary to the market trend. The volume of exterior sales generated in 1999 by the members of EK was around 3.83 bn euro (DM 7.5 bn). The volume of sales carried out through the group’s central office showed a plus of 6.6 per cent (4.8 per cent member-adjusted) to 1.31 bn euro (DM 2.57 bn). A figure of 51.6 mio euro (DM 100.9 mio) is put on EK’s gross profit. “The entry of new members on the one hand and the intensified expansion of business operations with group partners on the other hand are the essential factors behind the success of EK’s economic development in the 1999 financial year. This has made EK stand out clearly from the competition in a difficult environment,” is how director Franz-Josef Hasebrink assessed the situation with some satisfaction.
Weak DIY segment
Contrary to the trend in glass, china, ceramics, housewares and giftware (+ 8.2 per cent), domestic appliances (+ 6.4 per cent) and toys (+ 18.8 per cent), sales in the building and DIY, hardware, timber and garden segments fell by 3.9 per cent to 285.6 mio euro (DM 558.6 mio). This sector consequently contributes 21.8 per cent of EK’s overall sales. Since 1998 do-it-yourself, garden and timber activities have been combined in ZEUS, a joint subsidiary of EK and E/D/E. In the course of this current year EK intends to push still further ahead with its policy of specialisation. The group from Bielefeld is going to present a new “Easy Living” goods and service module for home enhancement stores and other large-format retailers. This will introduce a system that bundles goods and services for the wall, flooring, ceiling, bathroom and kitchen segments into complete units covering all possible needs.
International partners
EK is at the moment active in seven countries with a total of 2 464 members: in France, Belgium, the Netherlands, Luxembourg, Austria and Switzerland in addition to Germany. The group is also hoping for positive stimulus from working together with the American Truserv buying cooperative, which began in 1999. “It is not only a question of opening up new marketing channels within the trade in goods worldwide, but also of passing on know-how and improvements in the care and service segment,” emphasised the EK executive.