Praktiker: losses both at home and abroad

Sales of the German Praktiker group of companies in the first quarter of the current business year caved in by 10.4 per cent to a total of € 570.1 mio by comparison with the same period last year. The deficit amounted to 8.8 per cent like-for-like. Not included is the group’s business either in Turkey or in Luxembourg; the company is withdrawing from both of these countries. The operating result has deteriorated to a loss of € 91.7 mio (Q1 2013: € 59.1 mio). Altogether sales in Germany saw a reduction of 9.9 per cent (7.7 per cent like-for-like) to € 457.7 mio. The distribution of sales across the trading channels is marked by the continuing conversion of Praktiker stores to the Max Bahr banner. While Praktiker’s sales went down by 25.4 per cent, Max Bahr’s increased by 22.0 per cent. Sales abroad contracted even more severely than at home. They amounted to just € 112.4 mio – without Turkey and Luxembourg –or 12.5 per cent down on the comparable period last year (12.9 per cent like-for-like). Sales in Turkey went down by 19.5 per cent to € 14.8 mio and in Luxembourg by 8.8 per cent to € 7.6 mio. The group intends to be in the black again by 2014. Included among the points in their repositioning concept is the conversion of the Praktiker trading channel to a discounter. A range of 20 000 articles will then be offered in stores that have a maximum floorspace of 5 000 m². What is more, the company intends to go for substantial expansion of its online business through a multi-channel concept. The reduction of personnel in both the stores and head office is one of the measures that have already been announced to reduce costs.