Orell Füssli Book Retailing Division
The ongoing severe competitive pressure from new bookstores, aggressive pricing in the Internet environment and weak consumer sentiment for long periods in 2009 resulted in a slight decline in sales after adjustment for changes in selling space at Orell Füssli bookstores. The Internet business remained at much the same level as in the previous year. One encouraging feature was a strong increase in business with large customers, where Orell Füssli gained a number of new contracts. The division posted an overall increase in sales of 0.7% to CHF 123.6 million. The cost-cutting action initiated in 2008 had the expected impact in the year under review. The division was therefore able to maintain profit margins in its traditional business, despite slightly lower sales. The trend in business at the new bookselling premises opened in 2008 did not come up to expectations, which had a very negative impact on the division’s operating earnings. Orell Füssli Book Retailing posted overall annual earnings of CHF 6.3 million due to a book profit from the sale of a property which was surplus to requirements.
Events:
The re-opening of the large-format bookstore in St. Gall in February 2009 resulted in a pleasing, double-digit increase in sales at this outlet. This trend continued throughout the year and resulted in record sales in Christmas trading. In the autumn, Orell Füssli opened a new Restseller outlet in Kreuzlingen, which developed positively from the outset. This expanded the Restseller line to eight stores, and it will continue to be developed further. The new electronic gift card launched in time for Christmas trading, which replaced the existing paper gift vouchers, was very well received by customers and generated an increase in voucher sales compared with the previous year.