2016 ANNUAL REPORT of the COOP GROUP 2016 Annual Report of the Coop Group
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2016 ANNUAL REPORT OF THE COOP GROUP 2016 Annual Report of the Coop Group Coop Group business areas 4 Key figures at a glance 5 Foreword 6 Milestones in 2016 8 Strategy and operating environment 10 Profile of the Coop Group 10 Strategies and objectives 10 Economic and political environment 12 Sustainability as an overarching concept 13 Retail Business Area 17 Sales formats and range 17 Logistics, IT and property 27 Additional services 29 Wholesale / Production Business Area 33 Transgourmet Group 33 Production 37 Employees 43 Attractiveness as an employer 43 Training and staff development 44 Change management 46 Corporate governance 47 Coop Group in figures 65 Coop Group business areas 4 Coop Group Annual Report 2016 Coop Group business areas As at 1 March 2017 COOP GROUP RETAIL WHOLESALE / PRODUCTION Coop Supermarket Transgourmet Group Coop City Transgourmet Central and Eastern Europe Coop Building & Hobby Transgourmet France Coop@home Transgourmet Österreich Coop Restaurant Transgourmet Switzerland Toptip / Lumimart Import Parfumerie Bell Group Christ Watches & Jewellery Bell Switzerland Interdiscount Bell Germany Microspot.ch Bell International Coop Mineraloel Hilcona Dipl. Ing. Fust Nettoshop.ch / Schubiger Coop manufacturing companies Coop Vitality pharmacies Swissmill Marché Restaurants Schweiz Chocolats Halba Betty Bossi Sunray The Body Shop Switzerland Steinfels Swiss ITS Coop Travel Coop Bakeries Bâle Hotels Reismühle Brunnen Update Fitness Nutrex Tropenhaus Frutigen Pearlwater Mineralquellen Tropenhaus Wolhusen Cave Siroop Banana Ripening Plant Coop Immobilien Railcare Others RETAIL WHOLESALE PRODUCTION FÜR BESSERESSER. KeyCoop figures Group inat figuresa glance Key figures 665 Coop Group Annual Report 20162016 Key figures figures at a glance Key figures at a glance Total sales Earnings 28 322 CHF million 2 044 CHF million EBITDA 7.5% of net sales Net sales Group 763 CHF million EBIT 2.8% of net sales 27 259 CHF million of which Profit 19 251 CHF million Switzerland CHF million 8 008 CHF million abroad 475 1.7% of net sales Net sales segments Equity 17 162 CHF million Retail 8 928 CHF million 12 248 CHF million Wholesale / Production 47.8% Equity ratio Net sales online trading Free cash flow 565 CHF million Retail 61 CHF million 824 CHF million Wholesale / Production Employees at 31.12 Investments in tangible fixed assets 46 637 Retail 992 CHF million Switzerland 38 364 Wholesale / Production 517 CHF million abroad Trainees at 31.12 Sales outlets / markets 2 705 Retail 2 250 Retail 800 Wholesale / Production 226 Wholesale / Production Net sales Operating result (EBIT) in CHF billion in CHF million as a % of net sales 30 26.7 27.0 27.2 27.3 900 828 9.0 25.9 760 763 737 716 25 750 7.5 20 600 6.0 15 450 4.5 2.8 2.8 3.0 2.8 2.8 10 300 3.0 5 150 1.5 0 2012 2013 2014 2015 2016 0 2012 2013 2014 2015 2016 0 Foreword 6 Coop Group Annual Report 2016 Hansueli Loosli and Joos Sutter Foreword The Coop Group on a growth path Coop can look back on a successful business year in 2016, despite the fact that we felt the after-shocks in the Swiss retail sector of the abolition of the euro-Swiss franc minimum exchange rate. Consumer sentiment remained uncertain, and cross-border shopping continued at a high level. The Coop Group generated total sales of 28.3 billion francs with the Retail and Wholesale / Production business areas, corresponding to an impres- sive 5.2% growth in sales. Sustainability sales for the Coop Group grew by 8.8% to 3.9 billion francs. Net retail sales amounted to 17.2 billion francs, which was in line with the previous year. Coop was able to maintain or expand its market share in all sectors and saw a substantial increase of 2.6% in footfall at its supermarkets. In 2016, Coop introduced a large number of innovations in its retail business in particular. We surprised customers with new fast-food con - cepts such as Zopf & Zöpfli and Marché Express and also expanded Coop to go. At the beginning of January 2017 we also took over the Swiss Foreword 7 Coop Group Annual Report 2016 Aperto Group, which has a strong position at railway stations. This move enables us to further consolidate our position in the convenience market. Our new store concept for the supermarket of the future is innovative and features a market atmosphere and plenty of fresh products. At the end of 2016 we opened the first two stores with the new design, and by the end of 2017 their number will rise to around 45. The commissioning of the new distribution centre in Schafisheim in 2016 marked the completion of the largest construction project in Coop’s history and set environmental standards. The opening of the first public hydrogen filling station in Switzerland in November was another sustainability milestone. The Wholesale / Production business area – the second pillar of the Coop Group – performed especially well in 2016. Net sales grew by 15.4% to 12.2 billion francs. Worthy of mention is the Transgourmet Group, which advanced by 14.5% and continued to expand its position as the second- largest company in the European cash & carry and wholesale supplies sector. Activities at Transgourmet in 2016 focused on the group-wide introduc- tion of an own-label sustainability brand and expansion into Austria. By taking over the market leader in catering supplies we gained a foothold in a new country and made substantial strides with our strategy. The Bell Group, one of the leading meat and convenience foods processors in Europe, expanded its expertise in 2016 through acquisitions. Produc- tion highlights included the construction of the new Swissmill grain store and the commissioning of the new industrial bakery and confectionery unit in Schafisheim. We made considerable investments in expanding our online expertise in 2016, consciously linking in-store with online business. Group-wide net sales in the online business amounted to 1.4 billion francs, which is an increase of 14.6%. Digitalization offers lots of new opportunities and poses a particular challenge to us and our employees. In future we intend to rely less on tried-and-tested aspects and to invest more in innovative, forward-looking formats and concepts. We are well placed to meet this challenge with around 85 000 dedicated employees to whom we owe special thanks. Hansueli Loosli Joos Sutter Chairman of the Board of Directors Chairman of the Executive Committee Milestones in 2016 8 Coop Group Annual Report 2016 Milestones in 2016 January February March Transgourmet expands into Austria Multi-award winning sustainability Bell acquires Hubers Transgourmet acquires the whole of Austrian- commitment The Bell Group wants to continue achieving based C+C Pfeiffer. The company is a market Coop is awarded the Watt d’Or 2016 special sustainable growth and acquires the Austrian leader in the Austrian wholesale catering “Corporate Strategy” prize for its energy / CO2 company Hubers, which specializes in the supplies segment. With the takeover, Trans- vision. The renowned Swiss energy prize is production of high-quality poultry meat. gourmet forms the new national company awarded annually by the Swiss Federal Office Transgourmet Österreich and is now operating of Energy. April in a total of seven countries. Coop is also a pioneer in animal welfare matters: on the Business Benchmark on Farm Animal Majority stake in the Update Fitness group Welfare, it is one of the best of 90 internation- Coop acquires a majority stake of 51% in the ally leading companies in the food sector – and Update Fitness Group, gaining a foothold in a is the only provider from Switzerland to feature. promising business area. The fitness services provider is the market leader in eastern Switzerland. May June Bell acquires Eisberg Coop expands its Executive Committee Opening of the biggest logistics site Having acquired convenience salads specialist Coop establishes the new IT / Production / The new, ultra-modern Coop logistics centre in Eisberg, based in Dänikon, the Bell Group is Services Business Unit. As a result of the Schafisheim commences operations. It expanding its own activities in this product reorganization, the three areas are now comprises the biggest bakery and confectionery area. represented on the Executive Committee and unit in Switzerland, a new national distribution enjoy even greater strategic importance. centre for frozen products and a regional National launch of Siroop.ch distribution centre. Coop is setting new The regional pilot phase of Siroop.ch, which Introduction of the Veganz brand and standards in terms of logistics and sustainabil- has been running since November 2015, is expansion of Karma own-label brand ity with this pioneering construction project. complete. Switzerland’s first open online Coop concludes an exclusive partnership with marketplace is now online throughout German- German company Veganz and continues to Revamp of four online shops speaking Switzerland. It was created in a joint expand the range of its own-label brand Karma. Coop continues to broaden its expertise in venture between Coop and Swisscom. This strengthens Coop’s leading role in vegan online trading, giving the e-shops of and vegetarian food. Coop@home, Import Parfumerie, Toptip and Lumimart a new, ultra-modern look. Milestones in 2016 9 Coop Group Annual Report 2016 July September October Transgourmet Österreich: Three specialist formats celebrate an an- Bell Schweiz acquires Cher-Mignon and Environmental management certificate niversary Geiser AG The market leader in the wholesale catering sup- Dipl. Ing. Fust AG, a specialist in electrical Bell Schweiz acquires the Valais-based plies segment becomes the only Austrian food household appliances, is 50 years old. charcuterie company Cher-Mignon SA and retailer to hold the stringent ISO 14001 certi - Coop Building&Hobby, the leading Swiss DIY Geiser AG, which specializes in supplying ficate for environmental management systems.