International News - Strong international arm buoys Tengelmann growth

The international divisions of Tengelmann's Plus, Obi and Kik chains generated the most significant growth in the German retailer's stable for the year to June.

The privately-owned retailer, which has almost 7,000 stores across 14 countries, has revealed that group sales increased by 7.3 per cent to EUR28.48 billion (£18.16 billion) in the year to June 30.

Tengelmann chief executive Karl-Erivan W Haub described sales increases at the European-focused Plus supermarket chain as 'outstanding'.

Total sales for Plus's Eastern European division increased by 19.3 per cent to EUR2.1 billion (£1.34 billion). Altogether, Plus increased store numbers from 788 to 858. Spain's Plus Supermercados expanded most dramatically - 25 new stores opened in the period.

DIY business Obi, which Tengelmann estimates will have 100 stores in China in 10 years through its partnership with the local Haier Group, managed a 7.1 per cent sales rise to EUR4.45 billion (£2.84 billion).

Obi now has 111 stores internationally and 342 in its home market. In Germany, Obi is pursuing a strategy of relocating to larger sites.

General merchandise discounter Kik increased sales by 10.4 per cent to EUR501.8 million (£319.9 million).

Haub said the US business, A&P, suffered due to restructuring and the downturn in consumer spending, but in Canada the development of sales was 'shining'.

Sales in North America increased by 3.3 per cent to US$10.97 billion (£7 billion) across the 769 branches, of which 235 are in Canada.

The international business now accounts for 56 per cent of group sales.