| Type | Public (Euronext: BBED) |
|---|---|
| Industry | Retail |
| Founded | 1981 |
| Founder(s) | Mark Diks Pieter Diks |
| Headquarters | Uden, the Netherlands |
| Number of locations | 1,072 (2010)[1] |
| Area served | The Netherlands, Germany, Belgium, Austria, Switzerland, Spain, Poland |
| Key people | Ton Anbeek (CEO) Duncan van Hoeve (CFO) Dirk Goeminne (Chairman of the supervisory board) |
| Products | Bedroom furniture |
| Revenue | € 358.565 million (2008)[2] |
| Operating income | € 31.208 million (2008)[2] |
| Profit | € 22.126 million (2008)[2] |
| Total assets | € 96.978 million (2008)[2] |
| Employees | 2,227 (2008)[2] |
| Website | www.beterbedholding.nl |
Beter Bed N.V. is a Dutch retail company. Through its subsidiaries Beter Bed Holding N.V. trades in bedroom furniture, mattresses and related products. In this line of business Beter Bed N.V is market leader in the Netherlands.[3] Since 5 December 1996 Beter Bed's shares are being traded on the Amsterdam Stock Exchange.[4] However, Beter Bed does not belong to the group of companies that compose the AEX index but are part of the group that compose the Amsterdam Small Cap Index.
The corporate headquarters are in Uden, in the Dutch province of North Brabant. Beter Bed Holding N.V. is the mother company of several different brands of chain stores, totalling 1072 shops in a number of European countries. These companies operate in various market segments, from cash and carry products to exclusive bedroom furniture, each chain maintaining its own unique retail concept. The development and production of orthopedic mattresses is directed by the subsidiary DBC.
Beter Bed N.V. employs 2,227 full-time employees in seven countries.
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Beter Bed was founded in 1981 in Uden by the brothers Mark and Pieter Diks. They raised capital from their father, Jan Diks, co-owner of Dico, managed to secure a modest bank loan and opened their first shop in Uden.[5] Shortly afterwards three shops, specialising in bedroom furniture, had been opened. At that time shops specialising in bedroom furniture and accompanying products were a new and unfamiliar phenomenon since this market segment was dominated by large department stores and specialist shops concentrating on general interiors. The concept of providing high quality goods and a wide range of products at a low price proved to be successful and was a blueprint for all future activities of Beter Bed. During the second half of the 1980s the company began to grow.[6]
1986 Bedden en Bedden B.V., a factory for the production of MDF panels, was established in Uden.[7] In the 1990s two more production facilities were added to the company by acquiring two factories in Poland, Ecowood (1994) and Interwood (1996).[8]
The flotation of Beter Bed Holding N.V. took place in December 1996. Shares of Beter Bed Holding N.V. are traded at the Amsterdam Stock Exchange. In the same year another company was added to the holding by the acquisition of Dormaël, a company that operates in the higher segment of the bedroom furniture market.[9] The following year Beter Baby was founded, with the goal to gain market shares in the trade with bedroom furniture for babies and small children. At the same time Beter Bed N.V. acquired DFC Comfort ensuring the sole right of representation for orthopedic mattresses and pillows by this company within the Benelux.[6]
In order to comply with the planned expansion and the resulting requirements the company moved to a new location in January 1997, consisting of a larger administrative building and a distribution centre with a surface of 16,000 m², after a construction time of one year.[10]
In the second half of the 1990s the subsidiary Bedden Dump was founded. Originally set up to sell items taken from the Beter Bed range via temporary shops, it was decided in 2002 to expand this formula into a discount chain for bedroom furniture according to a cash and carry concept, targeting the lower market segment.[11] In 2005 this company was renamed BeddenReus.[12]
In 1998 the company expanded into Germany by opening the first two shops in Essen and Dortmund. Also in 1998 Beter Bed N.V. acquired the German company Matratzen Concord whose headquarters were based in Cologne.[13] At the same time Matratzen Concord began its expansion into Austria and Switzerland (1998), as well as the Netherlands (1999), France and Italy (2000).[14] Also in 1998, Mark and Pieter Diks, the holding's founding brothers, sold a large amount of their shares in the company, reducing their commitment to 18%.[15]
The holding's structure began to change in 1999. One of the founding brothers, Pieter Diks, sold his remaining shares and retired from the management. Mark Diks again reduced his share in the company in May 2000 but remained in the management team for the time being.[16] Also in 2000 the production facility Bedden und Bedden was sold off[15] and the subsidiary Dormaël was converted into a franchising formula. Following a management buyout Beter Baby was sold off. In August 2000, it was announced that the Blokker family had acquired 15% of Beter Bed's shares.[15]
Mark Diks resigned as CEO and became a member of the supervisory board of the holding in January 2001. Since January 2001 the office of CEO has been held by Frans Geelen,[15] having joined Beter Bed in August 2000 and after having served as a member of the board of directors of C&A Europe since 1996.[17]
In 2001 all activities of the subsidiary DFC Comfort were discontinued and a new company DBC International was founded. DBC International is active in the development, marketing and selling of mattresses developed under its own direction.[18]
At the end of 2001 Beter Bed N.V. had a total of 555 shops.[18]
In the first half of 2002 investment fund NeSBIC attempted to take over Beter Bed N.V.[19] by offering €16 for every share sold to it.[20][21] In view of the inadequate offer and simultaneous insecurity with regards to the financial backing, the project ultimately failed.[22] At the same time the remaining founder, Mark Diks, sold his remaining shares[23] and subsequently withdrew from the supervisory board.[24]
Matratzen Concord closed all its shops in Italy and France in 2003 due to disappointing sales figures and the lack of short-term prospects.[25]
Beter Bed's strategy changed during this period, returning to its core activities, the trading and selling of bedroom furniture and accessories and turning away from producing its own goods. As a consequence, in May 2005 the last remaining factory in Poland, Interwood, was sold, the second factory in Poland, Ecowood, had already been closed down in 2004.[26] By the end of 2004 some but not all of the Dormaël shops had gone into receivership,[27] Consequently, in June 2005 the first shops of Slaapgenoten, a company created by merging most of the remaining shops of the company Dormaël, founded in 2000 as a franchise formula, were opened.[26] However, some of these still operate under the name of Dormaël. In September of the same year the Spanish chain El Gigante del Colchón was acquired by Beter Bed N.V. At the time El Gigante del Colchón had 20 shops in the region of Barcelona.[28] At the end of 2008 the company had grown to 47 shops[1] covering the whole of Catalonia and expanded into the region of Madrid.[2]
In December 2005 all activities of the subsidiary Beter Bed Deutschland were terminated. The locations were integrated into Matratzen Concord.[26]
In October 2006 a second strategy for selling mattresses in Germany was introduced with the founding of the new subsidiary MAV Matratzen-Abverkauf. Two shops were opened in 2006. At the end of 2008 the company had grown to 30 shops.[2] The activities of MAV Matratzen-Abverkauf are concentrated in the federal state of North Rhine-Westphalia while, at the same time, expanding southwards into Baden-Württemberg.[29]
In September 2007, the first shops of Matratzen Concord were opened in Belgium.[30] By the end of June 2009 the number of shops there has grown to five[1] with the intention to open more in the future.
In the second half of 2008 the first Matratzen Concord shop was opened in Warsaw under the name of Materace Concord. The opening of further shops in Poland is planned,[31] the second shop opening in the first half of 2009.[32]
On 14 April 2009, CEO Frans Geelen announced his intention to resign from the office as chairman of the board of directors by April 2010 the latest.[33] On 9 October 2009, it was revealed that Ton Anbeek, at the time CEO at Koninklijke Auping bv, would succeed Frans Geelen as of 1 March 2010,[34] the appointment being ratified during an extraordinary general meeting of the shareholders of Beter Bed on 5 November 2009.[35]
On 23 April 2009, it was announced that CFO Ric van der Woude had accepted a position as CFO at Zeeman Groep. [36] On 1 September 2009 his responsibilities were taken over by Duncan van Hoeve as non-statutory Finance Director.[37]
On 1 September 2009 his responsibilities were taken over by Duncan van Hoeve as non-statutory Finance Director.[38]
With the opening of the first Beter Bed store in Olen, Belgium on 29 September 2011, Beter Bed B.V. attempts an expansion into the Belgian market.[39]
Beter Bed N.V. owns a number of companies operating in several European countries.
| Company | Country | Turnover share[2] |
|---|---|---|
| Beter Bed B.V. | The Netherlands | 31,7% |
| BeddenREUS | The Netherlands | 3,7% |
| Slaapgenoten | The Netherlands | 2,0% |
| DBC | The Netherlands | 3,7% |
| Matratzen Concord | The Netherlands, Germany, Belgium, Austria, Switzerland, Poland | 54,0% |
| MAV Matratzen-Abverkauf GmbH | Germany | 1,0% |
| El Gigante del Colchón S.L. | Spain | 4,0% |
One company operates on a franchise basis.
| Company | Country |
|---|---|
| Dormaël | The Netherlands |
Whereas in 2001 the objectives of Beter Bed N.V. were simply defined as aiming at fast and profitable expansion in the fragmented European bedroom furniture market whereby the various subsidiaries were supposed to endeavour to become market leaders in those countries they were active in on the one hand, and by developing own brand products which were to be sold by the company's own retail chains as well as through other distribution channels on the other hand,[18] the objectives since 2009 have become more specific and detailed. The company now aims to strengthen further its alleged market leadership in Europe by positioning itself in such a way to make use of any possibility of growth. Also, even though a temporary decrease in net profit is considered to be possible under exceptional circumstances, one of the goals is still to increase net profit. This is to be realised by adjusting various priorities. Furthermore, the target of an EBIT of 12,5% is to be retained as an objective, although the company admits that this will be unlikely in the near future if market conditions were to remain as they had been in 2008. Finally, in view of the uncertain market conditions Beter Bed N.V. considers an impeccable balance sheet and a strong cash flow to be vital to the strength and effectiveness of the company.[2]
Beter Bed Holding's strategy for the realisation of the objectives is to ensure like for like growth in revenue at comparable shops and low investments per shop accompanied by flexibility in relation to rental contracts. Secondly, the existing concept for shops is to be expanded, particularly outside the Netherlands. Additionally, the sales organisation is to be optimised and the sales methods improved through in-house training. Also, by utilising the company's IT systems to its full capability information can be provided to which should enable Beter Bed N.V. to respond quickly to new trends and opportunities and to make capacity adjustments in the event of changed market conditions. Finally, own product concepts are to be further to be developed by utilising technological developments in the field of mattress production and by responding to local trends in demand of these products.[2]
The management board of Beter Bed N.V. consists of the chief executive officer and the chief financial officer.
The supervisory board has five members.[40]
65 % of shares are held by eight companies. The remaining 35 % are free floating.[2]
| Shareholder | Percentage |
|---|---|
| Breedinvest B.V. | 12,8 % |
| Delta Deelnemingen Fonds | 11,6 % |
| Kempen Capital Management N.V. | 9,9 % |
| Aviva plc | 7,6 % |
| Fortis Verzekeringen Nederland N.V. | 6,6 % |
| Menor Investment B.V. | 5,7 % |
| Harris Associates L.P. | 5,6 % |
| Todlin N.V. | 5,2 % |