RUSSIA: Discounters drive X5 sales
By: just-food.com | 9 April 2010
 |
X5's LFL sales in the last quarter of 2009 also rose 7% |
X5 Retail Group, Russia's largest retailer by sales, this morning (9 April) posted a 7% rise in quarterly like-for-like sales despite slowing food inflation in the country.
The company said the growth came from a "powerful" performance from its discount stores and despite "persistent pressure" on its supermarkets and hypermarkets.
"Overall, X5 achieved strong results against a backdrop of weak consumer spending and drastically lower food inflation in Russia of approximately 5% compared to 16% a year ago," CEO Lev Khasis said.
Net sales jumped 20% to RUB75.75bn (US$2.56bn) in the three months to the end of March as X5 opened 27 more stores.
Russia's retail sector was hit particularly badly by the economic downturn but Khasis was looking to the future with optimism.
"We believe consumer spending will begin to show improvement towards the end of the year. This, in combination with stepped up new store openings and stronger Paterson sales post-integration should enable X5 to deliver on its full year objectives and benefit from future economic recovery," he said.
X5 reiterated its capital expenditure plan and sales growth forecast for 2010. Sales growth this year will be “comparable” to 2009, when growth reached 25%, X5 said in January.
Sectors: Emerging markets, Financials, Retail
Companies: X5 Retail Group
View next/previous articles
9 Apr 2010 -
9 Apr 2010 -
Currently reading -
RUSSIA: Discounters drive X5 sales
9 Apr 2010 -
9 Apr 2010 -
Related research
Datamonitor's Food Retail in Russia industry profile is an essential resource for top-level data and analysis covering the Food Retail industry. It includes data on market size and segmentation, plus textual and graphical analysis of the key trends a...
Retailers became less optimistic as they witnessed the worsening scenario of Russian economic recovery at the end of the review period. Despite government optimism, business expect a longer recovery period compared with previous forecasts. The necess...
After years of buoyant growth Russia's retail prospects have worsened as deteriorating macroeconomic conditions and a recessionary environment feed through to weaker demand and declining retail sales. Despite this many retailers and suppliers are con...
Related articles
RUSSIA: X5 Retail Group completes Ostrov acquisition
Russian grocery retailer X5 Retail Group announced today (29 September) that it has completed the acquisition of Moscow-based chain Ostrov.
RUSSIA: X5 Retail Group faces store disposals with quest for Kopeika
Russia's anti-monopoly service has granted X5 Retail Group permission to acquire local grocery chain Kopeika but said Russia's largest retailer by sales must offload stores to secure a deal.
There are currently no comments on this article
Be the first to comment on this article