• Top 750 European Distributors generate combined revenues in excess of $112 billion (€88.5bn)
• Focus on consolidation or specialisation to maintain market share
• Europe becoming even more important to global players

(London – 12 March 2009) European distribution has entered the recession from a position of record strength. In 2007, the last full year for which accounts are available, turnover for the top 750 increased by 11.8% to $112.5bn (€88.5bn). Overall, the major groups outperformed the independents with growth of 13.07% (versus 10.32%) partly fuelled by an increase in merger and acquisitions activity. But over the last 6 months in particular, the trend is down with many companies reporting a fall in sales during 2008. These are amongst the findings of “Distributors in Europe – The Top 750”, the latest database report from IT Europa which is published today.

The database report, which provides detailed business profiles of each of the top 750 European Distributors, provides further evidence that the European sector is becoming increasingly polarised between the broadliners who rely on reach and scale to outmuscle the competition and the specialists relying on specific sector expertise to generate value to differentiate and protect their business. The importance of Europe is increasing, especially for the broadliners, who are looking for acquisition opportunities in areas with higher margins.

In terms of geography, the highest growth rates over the last 2 years have been achieved in the Baltics, with Latvia, Estonia, Lithuania and Finland leading the way ahead of Bosnia and Serbia. Larger markets such as UK, Germany and France have shown only modest growth while the distribution sector in some countries, such as Belgium and Ireland has actually contracted.

“What has become evident from this data is that it is important to be a large player now in this European distribution market or have a clear area of expertise,” commented Alan Norman, Managing Director of IT Europa. “There was a considerable amount of consolidation in 2007 and 2008 and not just big distributors buying independents. We have seen the number of multi-national groups operating across Europe drop from 43 to 35 as realignment takes place to address a new tougher market place. In the face of increased competition and pressure on margins, distributors are battling hard to increase productivity and their revenue per head. Ultimately that means adding volume or value while controlling or reducing costs.”

The “Distributors in Europe – The Top 750” database report spans 39 countries and represents the most detailed view available of this key market sector. It has been compiled from detailed interviews by IT Europa’s own research team. The company profiles include sales breakdowns by company activity, which markets a company operates in, and detailed information on staff numbers and development plans, along with contact details for the top executives of each company. The report is available from IT Europa (www.iteuropa.com) at a cost of £2,750 for a single-user licence and £11,000 for a multi-user licence.