2017 Annual Report of the Coop Group
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2017 ANNUAL REPORT OF THE COOP GROUP 2017 Annual Report of the Coop Group Coop Group business areas 4 Key figures at a glance 5 Foreword 6 Milestones in 2017 8 Strategy and operating environment 10 Profile of the Coop Group 10 Strategies and objectives 10 Economic and political environment 12 To the top with sustainability 14 Retail Business Area 17 Sales formats and range 18 Logistics, IT and property 31 Additional services 32 Wholesale / Production Business Area 36 Transgourmet Group 37 Production 44 Employees 49 Attractiveness as an employer 50 Training and staff development 52 Change management 53 Corporate governance 54 Coop Group in figures 73 Coop Group business areas 4 Coop Group Annual Report 2017 Coop Group business areas As at 1 March 2018 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 Coop Mineraloel Coop Vitality pharmacies Bell Food Group AG ITS Coop Travel Bell Interdiscount Hilcona Microspot.ch Eisberg Dipl. Ing. Fust Nettoshop.ch / Schubiger Coop manufacturing companies Toptip / Lumimart Chocolats Halba / Sunray Import Parfumerie Steinfels Swiss Christ Watches & Jewellery Swissmill Marché Restaurants Schweiz Reismühle Brunnen Betty Bossi Nutrex The Body Shop Switzerland Pearlwater Mineralquellen BâleHotels Coop Bakeries Update Fitness Cave Tropenhaus Frutigen Banana Ripening Plant Tropenhaus Wolhusen Siroop Coop Immobilien Railcare Others RETAIL WHOLESALE PRODUCTION FÜR BESSERESSER. Watches & Jewelry KeyCoop figures Group inat figuresa glance Key figures 745 Coop Group Annual Report 2017 Key figures at a glance Key figures Key figures at a glance Total sales Earnings 29 207 CHF million 1 994 CHF million EBITDA 7.1% of net sales Net sales Group 806 CHF million EBIT 2.9% of net sales 28 152 CHF million of which Profit 19 476 CHF million Switzerland CHF million 8 676 CHF million abroad 485 1.7% of net sales Net sales segments Equity 17 405 CHF million Retail 9 339 CHF million 13 006 CHF million Wholesale / Production 47.9% Equity ratio Net sales online trading Free cash flow 676 CHF million Retail 99 CHF million 1 036 CHF million Wholesale / Production Employees at 31.12 Investments in tangible fixed assets 46 604 Retail 920 CHF million Switzerland 39 714 Wholesale / Production 361 CHF million abroad Trainees at 31.12 Sales outlets / markets 2 648 Retail 2 295 Retail 836 Wholesale / Production 142 Wholesale / Production Net sales Operating result (EBIT) in CHF billion in CHF million as a % of net sales 28.2 30 27.0 27.2 27.3 900 828 806 9.0 25.9 760 763 716 25 750 7.5 20 600 6.0 15 450 4.5 2.8 3.0 2.8 2.8 2.9 10 300 3.0 5 150 1.5 0 2013 2014 2015 2016 2017 0 2013 2014 2015 2016 2017 0 Foreword 6 Coop Group Annual Report 2017 Hansueli Loosli and Joos Sutter Foreword Coop is growing and gaining market share The Coop Group continued to grow successfully in 2017 and steadily expanded its position: On the one hand new formats and product innova- tions coupled with organic growth helped Coop to further consolidate its market position in the Swiss retail sector. At the same time, the Whole - sale and Production business areas staged clear advances. Overall, the Coop Group generated sales of 29.2 billion francs, which equates to sales growth of 3.1%. Our sales from sustainable products grew by 10.4% to 4.3 billion francs. Coop became a world champion in terms of sustainabil- ity and outperformed 147 international retailers in over 100 categories. Net sales in the retail segment rose to 17.4 billion francs. Both super- markets and specialist formats advanced again. This went hand in hand with a clear improvement in market share: we increased footfall by a strong 5.7% in our supermarkets. Once again, we stood out as the innovation leader in Swiss retail. We opened the Karma Shop – a store exclusively for gourmet-quality vegetar- ian and vegan products. With Sapori d’Italia we devoted a store entirely to Switzerland's most popular cuisine. We created an innovative, cross- platform format with Fooby: the latest food trends are now accessible at all times and from anywhere, from the store to mobile devices. We turned shopping into a new experience with fresh, regional produce in a market- like atmosphere at the Coop megastore in Seewen. We also sent out a Foreword 7 Coop Group Annual Report 2017 strong message in logistics and production in 2017: In October, the Coop production centre opened in Pratteln Salina Raurica, in which the produc- tion of Cave and Chocolats Halba / Sunray and the most modern private quality laboratory in Switzerland are housed. Net sales of the second pillar – Wholesale / Production – rose by 6.2% to 13 billion francs in 2017, which is an extremely positive performance. The Transgourmet Group generated net sales of 9.1 billion francs and recorded growth of 6.3%. The wholesale catering supplies company thus remained on course to become the leading European cash & carry and wholesale supplies company. In 2017, the Transgourmet Group again concentrated its efforts on expanding its foodservice business. Having acquired Gastronovi, a supplier of digital solutions for the catering trade, and beverage service provider Team Beverage, Transgourmet now offers the full range of wholesale catering services. Moreover, with the launch of own-label sustainability brand Vonatur in Austria, Transgourmet is now the first international wholesale catering supplies company to supply sustainable products across the board. In a move indicative of its new strategic direction of recent years, in April 2017 the Bell group adopted a new name, Bell Food Group AG. The Bell Food Group has evolved from a Swiss meat processor to Europe's leading meat and convenience food specialist and is now divided into the busi- ness areas Bell, Hilcona and Eisberg. In taking over Hügli Holding AG on 15 January 2018, the Bell Food Group is supplementing its business activ- ities with durable convenience products. We continued our e-commerce drive in 2017 and generated sales growth of 18.5% to 1.7 billion francs. Coop@home was able to greatly expand its service range with a digital meat, fish and cheese counter. Online con- sumer electronics shops posted a sharp rise with growth of 25.8% and sales of 432 million francs. With over 1 100 Pick-up stations, Coop also has the largest cross-platform network of Pick-up stations in Switzerland. With its wide array of innovations, Coop is already delivering the future of retail today. Digitalization and the broadening of expertise in the Retail and Wholesale / Production business areas will ensure that, in future, our products reach customers even fresher and faster. We have more than 86 000 committed employees who have been highly instrumental in this process, to whom we extend our sincerest gratitude. Hansueli Loosli Joos Sutter Chairman of the Board of Directors Chairman of the Executive Committee Milestones in 2017 8 Coop Group Annual Report 2017 Milestones in 2017 January February April Coop’s fourth no. 1 worldwide for Coop launches culinary platform Fooby 10 years of Pro Montagna animal welfare With culinary platform Fooby, Coop intro- Coop celebrated the tenth anniversary of For the fourth time in succession, Coop is duces a new service that regularly up Pro Montagna, the ownlabel brand for ranked no. 1 in international animal welfare dates cus tomers on the latest recipe and authentic products from the Swiss mountains, rating “Business Benchmark on Farm Animal nutrition trends. Related Fooby recipes with a host of measures in 2017. Welfare” (BBFAW). For its high basic standards, can be picked up in selected food aisles. its Naturafarm animal welfare programme Customers can create shopping lists via an Bell becomes the Bell Food Group and its extensive organic range, the BBFAW app with a per sonalized cookery book On 11 April 2017, the Annual General Meeting named Coop the frontrunner among 99 inter and order the required foods directly from of Bell AG resolved to rename the company national providers in the food segment. Coop@home. Bell Food Group AG; it is now divided into the business areas Bell, Hilcona and Eisberg. New store concept for Christ In April, Christ Watches & Jewellery introduced a new store concept at Zurich Airport, which will now be rolled out to the other branches. May June Karma shop opens in Zug 1 100 Pickup stations in Switzerland Coop becomes the world champion The first Karma shop, which opened in May, In May, the network of Pickup stations via of sustainability heralds a brand new store concept: the Karma which customers can also have orders from Rating agency Oekom Research again names shop at Zug station sells the widest range various Coop online shops delivered to the Coop the world’s most sustainable retailer. of exclusively vegetarian and vegan products stores of other sales formats grew to 1 100. In more than 100 categories, Coop beat in Switzerland. As well as fresh products, 147 international retailers, scoring very well the range includes basic foods and vegan or Transgourmet acquires majority in all areas. Importantly, this latest investi vegetarian cosmetic products. in Team Beverage gation rated business activities abroad as well Transgourmet Central and Eastern Europe acquires as at home for the first time. Europe’s biggest woodfired oven 70% of the shares in Team Beverage, gaining begins operating a foothold in the German beverages trade. In May, Coop begins operating Europe’s biggest With system sales in excess of 1.5 billion woodfired oven, in Schafisheim, to produce euros, Team Beverage plays a leading role in even tastier, strongerflavoured breads.