Hema - Newsbites from today's release

All,

Please refer to our existing analysis here.

Hema’s press release today contained no news that would change our mind with respect to the name, but the statement contained a few data points that are worth mentioning: 

1) The Jumbo deal reached a final agreement and more importantly that resulted in HEMA receiving “a first substantial part of the agreed fee”.

2) HEMA seem to record significantly higher basket size among Dutch customers shopping in recent weeks. So footfall is down significantly, but those who still come shopping are the better customers.

3) Online sales have tripled. HEMA had approx. 10% of online sales before, so its a meaningful jump that can perhaps also be extrapolated to other retailers with similar metrics.

4) The company has managed to reduce rent in the Netherlands and is taking part in government programs in every jurisdiction where it does business.

Wolfgang