Lekkerland: Challenging year completed successfully
- Balance sheet for 2017: the Lekkerland Group increases result from operations before financial result with slightly lower sales
- Important contracts are extended and new contracts are concluded
- Strategy is developed further and places focus on customer experience
In 2017, Lekkerland maintained its position as one of Europe’s leading convenience specialists with important contract extensions, acquisitions of major new customers, and successful solutions and concepts. In spite of a number of challenges and an ongoing fiercely competitive market environment, the Group succeeded in driving forward the positive business development achieved in previous years. In 2017, the Lekkerland Group generated sales of 12.8 billion euros (previous year: 13.0 billion euros). The result from operations before financial result was 104.3 million euros.
“We are able to look back on 2017 with a great deal of satisfaction. We had to overcome a number of challenges as the intensity of competition got fiercer overall, the tobacco market declined and a major customer gradually switched to a competitor. We were successful, as the result demonstrates,” said Patrick Steppe, Chief Executive Officer (CEO) of Lekkerland AG & Co. KG.
Sales fell slightly
In the business year 2017, sales fell back slightly in all segments. In the Germany segment, sales came down by 2.1% compared with the previous year to 7,571.0 million euros. In the Rest of Western Europe segment, sales eased by 1.0 % to 5,213.3 million euros.
Overview of the sales performance for the three product ranges at Lekkerland: Sales in the tobacco goods product group fell by 2.7 % to 10,120.7 million euros, whereas sales in the higher-margin range of food / non-food climbed once more by 2.6 % to 2,544.4 million euros. In the commissions on electronic value (e-va) / miscellaneous product group, the Lekkerland Group was able to expand sales by 2.1 % to 119.2 million euros.
Strategy adjusted – focus on customer experience
Against the background of the changed needs of consumers and the development of even fiercer competition, Lekkerland has modified its growth strategy. The focus is now on customer experience. “The customer experience is the key success factor in competition – both in relation to the target group of consumers and in relation to our customers,” commented Patrick Steppe. The goal of Lekkerland is to be “Your most convenient partner” for its customers. Cooperation with the company is intended to be maximally easy and convenient at all contact points.
On this basis, Lekkerland has expanded its strategy by two additional strategic thrusts: the focus on “Retail Enablement” and the organised food service market segment. As part of the first of these strategies, Lekkerland provides its customers with solutions and concepts that are tailored to the current needs of consumers. Furthermore, Lekkerland intends to expand its market position in the area of organised food service. This encompasses areas such as burger and coffee shop chains as well as casual dining concepts. Digitalisation plays a key role for Lekkerland on its journey to the target of becoming “Your most convenient partner” for its customers.
Customers value convenience competence
In the context of intense competition, oil companies and other companies value the convenience competence of Lekkerland. “Our services and products enable our customers to optimally satisfy the needs of consumers as easily as possible – and this empowers them to be successful over the long term,” commented Patrick Steppe.
In 2017, Lekkerland succeeded in extending a large number of contracts and acquiring new customers. One of the results is that Burger King Spain extended its contract with the Spanish national company Conway. In Germany, sev-eral oil companies extended their contracts with Lekkerland. Coffee Fellows is one of the most important new customers – Lekkerland is responsible for the supply chain to the coffee shop chain throughout Europe.
Retail Enablement: New solutions convince customers and consumers
In 2017, Lekkerland once again continued to successfully roll out or launch food service concepts on the back of its “Retail Enablement” approach in different countries, with the aim of supporting its customers as they compete with providers such as bakeries and food retailers. When concepts are developed, the wishes and needs of consumers are of highest priority.
One example of this is the “Frischwerk” shop concept of Lekkerland in Germany. This received two prestigious sec-tor prizes. In June 2017, the concept received an “Honourable Mention” from the convenience and fuel retailing as-sociation NACS in the “small formats” category of the respected “International Convenience Retailer of the Year Award”. At the beginning of 2018, the “Frischwerk” test shop in Aalen (Germany) earned the title of “Shop of the Year” in the category filling/service station from the trade magazine Convenience Shop. At the end of this year, availability of the “Frischwerk” concept is planned for cus-tomers of Lekkerland throughout Germany.
Internal development continues
In 2017, Lekkerland continued to also ramp up internal de-elopment. Switzerland was the first operational company to implement Become One. This is a system platform for group-wide harmonisation of business and IT processes. Intensive and comprehensive preparations are now being carried out for introduction in Germany during 2019. Other national companies will follow.
Forecast modest but optimistic
In 2018, the Lekkerland Group will focus on implementation of the advanced strategy. Owing to the ongoing increase in competitive pressure and the challenging tobacco market, the key success indicators in the business year 2018 are likely to be lower than in the business year 2017, although it is anticipated that they will match the good level of the year 2016.
About the Lekkerland Group
Our customers' success is what drives us.
The Lekkerland Group has set itself the goal of becoming “Your most convenient partner” for its customers and the preferred full-service concept provider for all aspects of the convenience store business. Lekkerland employs around 4,800 people and services around 91,000 points of sale in six European countries. Our customers include service stations, kiosks, convenience stores, bakeries, food retailers and quick service restaurants. The Lekkerland Group turned over 12,8 billion euros in the 2017 financial year.