BELGIUM: Colruyt sees 9m sales growth
- Colruyt 9M sales up 6.1%
- Gains market share in Belgium
- Wholesale, retail arms report growth
Colruyt sees market share gains
Belgian discount supermarket group Colruyt booked an increase in sales for the first nine months of the year, with growth reported at both its retail and wholesale units.
The company said that overall sales rose by 6.1% to EUR6.26bn (US$8.44bn), while underlying sales were up 6.4%.
The company's retail arm, which sells direct to consumers, booked growth of 5.1% to EUR4.75bn. Colruyt said that gains were driven by its discount campaigns and strong footfall over Christmas. Colruyt said that its value focus enabled it to grow market share in Belgium.
Meanwhile, the group's wholesale unit reported sales of EUR1.04bn, up 7% on the year.
CONSOLIDATED REVENUE FIGURE
SALES OF THE FIRST NINE MONTHS OF 2012/2013
Sustainable sales growth thanks to strong sales performance at year end and a consistent strategy of lowest prices
During the first nine months of financial year 2012/2013 (period from 01/04/2012 to 31/12/2012)
Colruyt Group recorded a consolidated sales increase of 6,1% to EUR 6.260,8 million compared with EUR 5.898,9 million in the same period last year. Taking the divestment of Intrion into account, the comparable revenue increased by 6,4%. The revenue figures of the different group segments are detailed in the table below.
Sales from the group's retail business activities, mainly driven by our Colruyt banner stores, grew by 5,1% to EUR 4.752,4 million. By the end of December 2012, the food retail trade consisted of
227 Colruyt, 86 OKay and 8 Bio-Planet stores in Belgium and 61 owned stores (Colruyt) in France.
The DreamLand activity comprises 48 non-food stores in Belgium and France.
Revenue from Colruyt Group's wholesale and food service activities grew by 7,0% to EUR 1.036,0 million. This increase can be attributed mainly to Spar Wholesale and the French Food service activity.
Revenue from the other activities grew by 12,5 % to EUR 567,2 million. This increase was realised mainly by the DATS 24 petrol stations, the revenue of which progressed as a result of price and volume increases as well as 11 new openings.
Important elements that had an impact on the revenue figures of the first nine months of
- Strong year-end sales and the success of the additional discount campaigns on top of our lowest prices translated into further revenue growth, despite the unfavourable calendar effect. Combined with the consistent application of our lowest prices strategy these elements led to further market share gains.
- Due to the uncertain economic climate consumers remain very critical and cost-conscious, resulting in a shift in purchasing behaviour towards cheaper products.
- Although today the French consumer market is characterised by a highly competitive climate, putting purchasing power under severe pressure, the French retail activities recorded strong revenue growth led by store expansion and volume growth.
- Our independent Spar entrepreneurs, who invest firmly in service, quality and extended opening hours, were also able to post excellent sales results in the third quarter. The reference made in their campaigns to their very competitive prices achieved through the cooperation with Colruyt Group, is also starting to bear fruit.
- In a stagnating French Food service market, the French Food service activity managed to gain a competitive advantage through its customer-oriented approach, which led to strong sales results.
Original source: Colruyt
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