Eroski blamed the loss on weak consumer spending

Eroski blamed the loss on weak consumer spending

Eroski has almost tripled its net losses in its last financial year, as the Spanish retailer battled a slowdown in consumer spending in its domestic market.

In the 12 months ended 31 January, the retailer recorded a net loss of EUR121m (US$156m). This compared to losses of EUR43.01m in the prior year.

Eroski blamed the loss on weak consumer spending and a "stagnant" real estate market. Without the effect of non-recurring items, the retailer made a net loss of EUR70m.

Sales in the period amounted to EUR6.2m, a drop of 5.3% on last year. Despite this, Eroski said its new hypermarket and supermarket models have shown sales growth of 15% and 9%, respectively, in store traffic.

Eroski opened 64 stores in the period and said it plans to open a further 65 supermarkets, both owned and franchised, in the next fiscal year.

Click here to view the full earnings release.