SPAIN: Eroski nearly triples FY losses
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.
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