CHEP’s Growth Opportunity

Germany

Germany food retail sales only account for 11% of total private consumption.  Non-food accounts for about 20% of total sales and the German grocery market is worth in excess of $300 billion.

Domestic operators dominate the market and there is a strong tradition for independent supermarkets and co-operatives.  Germany operates as a collection of regional markets with pockets of activity, resulting in short distribution/relocation distances.

Over the last 5 years, the total number of small traditional grocery outlets in Germany has declined; this has been offset by a strong increase in discounters.  Germany has a strong culture of co-operative agreements, and environmental awareness among consumers and industry.

CHEP has been operating in Germany since 1985.  It has developed a strong product offer in the pooling of half pallets and quarter pallets. Building on what has been achieved so far and following a strategic review of the European market, CHEP believes that  Germany offers considerable opportunity for significant growth.

Poland

Poland has been identified as a market that offers considerable opportunity for CHEP, due to a combination of dissatisfaction with current equipment solutions available and the significant market growth potential. This is due to the supply chain and logistics operations in Poland becoming more sophisticated and better integrated with the European Union and beyond. 

CHEP’s current business in Poland was established in 1999.  It is currently experiencing double digit annual growth based largely on export activities.

CHEP is confident that there is significant additional  business to be won in Poland and is in the process of  assembling a team to address this opportunity.

Interest in CHEP’s  services is coming from three main directions;

• The “modern retail” sector that has seen and experienced CHEP services in other countries;
• The major international brand owners who use CHEP in other countries and want to have a single solution across Europe; and

The substantial number of companies continuing to move production away from Western Europe to Poland, Bulgaria and other central European countries.