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FRANKFURT/M, Germany (May 11) – According to analysts Merck, Finck & Co. there are some serious pitfalls to consider for German MIFA if they go public. The firm’s dependence on customers like Neckermann, Karstadt, Metro and Aldi makes them vulnerable, considering that these companies are involved in a ‘intensive price-war’. This may be one of […]

FRANKFURT/M, Germany (May 11) – According to analysts Merck, Finck & Co. there are some serious pitfalls to consider for German MIFA if they go public. The firm’s dependence on customers like Neckermann, Karstadt, Metro and Aldi makes them vulnerable, considering that these companies are involved in a ‘intensive price-war’. This may be one of the reasons that MIFA saw it’s turnover grow just € 800.000 (to € 63.3 million) last year. The analysts of Merck, Finck & Co. even expect the price war among the retail giants in Germany will intensify over the coming period…plus they are convinced that the German market is saturated. Therefore it is imperative that MIFA expands outside the country in the near future. The company also needs to focus more on IBD’s, as the profit margins are much healthier than when supplying to mega-markets and mail order companies; according to Merck, Finck & Co.(MH)

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