JAMIE CARR: Steinhoff; Rex Trueform
Steinhoff remains aggressively acquisitive in its mission to add more scale to what has become a huge operation, meanwhile, at the other end of the retail pecking order, poor old Rex Trueform is struggling on
STEINHOFFA quick shufty at Steinhoff’s website reinforces the idea that a business proposition doesn’t need to be covered in 17 layers of complexity to be successful. The company describes its business model as "sourcing and manufacturing products in low-cost locations and retailing them in developed markets", and you don’t need a doctorate in economics to work out how that could lead to great waves of loot flowing your way.While the concept may be simple, the execution is complex, and this is where Steinhoff is focusing. The company has grown its margins as the scale of the operation has increased, committing to vertical integration along the length of the supply chain and exploiting the synergies generated by its central logistics and sourcing divisions. When translated from the original management consulting jargon frenzy, this boils down to getting hold of decent products and banging them out to consumers at a decent price point.With group revenues coming in at €13.1bn, it’s cle...
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