Showcase store at Linz's Taubenmarkt ready in September. Revenue fell in the corona year, profit expected to increase.
Betten Reiter is investing EUR 4.5 million in new business premises this year. The family company with its headquarters and own production in Leonding near Linz opens a flagship store in Vösendorf in May. In September they move from the Volksgarten to the Graben in Linz. Branches in Klagenfurt and Villach are being renewed, the company reported on Tuesday at a press conference in Linz.
Sales fell in the 2020/21 financial year (until February 28) by around 10 percent to EUR 73 million; for the current year, the company is expecting sales of EUR 89.5 million, assuming the stores remain open. That would correspond to an increase of 22 percent. Due to the reduced advertising spending by Corona, the business result before tax in 2020/21 will – probably – be slightly higher than in the financial year before the pandemic, in 2019/20 the EGT was 661,000 euros. “Our principle of not growing too quickly and continuously financing us from cash flow has saved us from liquidity problems,” said managing director Peter Hildebrand.
New flagship store in Linz
The company operates branches both in city centers and in peripheral locations. The new flagship store in downtown Linz near the Taubenmarkt will be the largest and most modern store in Upper Austria to date with a sales area of 1,330 square meters. There are 10 parking spaces and e-charging stations in the associated garage for customers. As a highlight and surprise for the opening in autumn, the managing director announced the new mattress department. This year, a new range of hemp products is added to the product range of the Leonding factory. According to Hildebrand, hemp can be produced very ecologically.
Although the online business increased by around 400 percent in 2020, the 18 Austria-wide branches could never compensate for it. Things have been going well since trading reopened. “In February we achieved the same turnover in three weeks as last year in February in 4 weeks”, reported the managing director. Betten Reiter currently employs 348 people, compared to 346 a year ago.
