HEMA Profit Drops 50%

The store chain HEMA had a net profit of 6.4 million euro in 2012, while in 2011 it had a net profit of 11.4 million. The turnover increased by 0.3 percent to 1.153 billion euro. This was reported on Wednesday. HEMA has had to deal with a worsening economy, a decrease in consumer confidence and the VAT increase, which put pressure on the margins. In light of the circumstances, chairman Ronald van Zetten thinks HEMA has done well. That consumers cut their spending can be seen from, among others, the money they spend on home decoration, like curtains. Food is doing well, especially the one-euro breakfast and the recently introduced one-euro ‘4-uurtje’ (a cup of coffee or tea with cake), which attracts many customers. For clothes HEMA depends traditionally on products like T-shirts, socks and underwear. These have always done well since people need them. The company is waiting anxiously for the results of the last quarter of 2012, during which they started to sell fashion. HEMA expects that it also has to deal with the economic crisis in 2013. The company has been owned by the British investment company, Lion Capital, since 2007. It has 638 shops of which 517 are located in the Netherlands and 121 shops are located abroad.