The large drugstore chain Rossmann generated approximately ten billion euros in sales last year and has now decided to invest 90 million euros in German real estate in the current year. However, improvements are planned not only in Germany, but also abroad.
A total of €215 million will be invested worldwide this year. The chain currently has over 3,900 stores in seven European countries, and 200 new stores are now planned, 110 of which will be in Germany. However, the announced €90 million will not only be invested in the 110 new stores, but also in the modernization of 175 existing stores. Rossmann currently employs approximately 56,000 people and has a 15.2% share of the German food retail market. The new stores will have an average size of 700m2, which means that Rossmann's average store size will be 580m2.
Managing Director Dirk Rossmann justified the investment by saying that the drugstore business has hardly changed despite online retail, as consumers prefer to buy drugstore and food products in stores rather than online. Rossmann currently has 60 million visitors to its website and generates 30 million euros in sales.
However, as good as this sounds, stores will nevertheless be closed this year, which means that, on balance, "only" around 160 new stores will be opened.
Last year, domestic sales totaled 9.46 billion euros, representing an increase of 5.1%. Abroad, sales totaled around 2.8 billion euros, an increase of 7.7% over the previous year. This year, Rossmann is now planning sales of 9.9 billion euros.
