Balance Sheet Disclosures


29. Inventories

Breakdown of Inventories
in million €31 Dec. 201731 Dec. 2016
Finished goods and merchandise3,426.03,215.5
Work in progress144.9107.6
Raw materials, consumables and supplies62.659.4

Inventories increased in 2017 primarily due to an increase in finished goods and merchandise. The increase in inventories resulted primarily from the National Specialist Stores and Retail Germany business segments. The increase in inventories in the National Specialist Stores business segment was attributable primarily to an increase in order volume so as to avoid out-of-stock situations. The increase in the Retail Germany business segment resulted mainly from the first-time consolidation of REWE Dortmund SE & Co. KG, Dortmund (see also note 4 "Acquisitions").

In addition, work in progress also contributed to the increase in inventories. This concerned in particular the Travel and Tourism business segment and resulted primarily from greater brokered travel revenue overall, which was due among other things to the ability to book trips earlier than in the previous year.

Allowances for slow-moving merchandise and for individual risks amounted to 237.5 million euros as at the balance sheet date (previous year: 247.1 million euros). Reversals of impairment losses on inventories amounted to 4.1 million euros in the financial year (previous year: 2.3 million euros); they were recognised as a reduction in material expenses.

As in the previous year no inventories were pledged as collateral for financial liabilities during the financial year.