RUSSIA: Poor discounter traffic hits sales at X5 Retail Group
- Q3 like-for-like sales slide 0.7%
- Q3 group sales up 10.4%
- 9M group sales climb 8.2%
A positive trend in supermarket traffic boosted X5's consolidated group sales
X5 Retail Group has recorded a decline in third-quarter like-for-like sales amid falling sales at its hypermarkets and supermarkets.
In the three months to the end of September, like-for-like sales slid 0.7%, the Russian retailer reported today (11 October).
Retail sales for X5's hypermarket operations dropped 9.9%, primarily due to the cancellation of the chain's loyalty programme in February and the negative impact of the format's like-for-like sales, which were down 12%.
Supermarket sales were down 5.9%, as its like-for-like sales dropped 2.7%.
The retailer's soft discounter division reported a 15.9% sales increase, 2.6% on a like-for-like basis.
Sales from its convenience stores were up 74.3%, and 11.6% on a like-for-like basis.
Consolidated group sales, which climbed 10.4% to RUR115.88bn (US$3.73bn) year-on-year.
X5 added 174 stores in the quarter, including 157 soft discounters, nine supermarkets and 14 convenience stores.
In the nine month period, like-for-like sales dropped 1.9%, although consolidated net sales climbed 8.2% year-on-year to RUR356.21bn.
X5's share price had climbed 2.6% to RUR20.62 at 09:53 BST.
Russian retailer Magnit has seen profits benefit from improved purchasing terms and cost controls as it expanded its store footprint over the past 12 months....
This week saw the debate around the food industry's role in the obesity epidemic come to the fore once again, as the UK Government warned that the industry must do more or face the possibility of legi...
The release of X5 Retail Group's sales figures has prompted pundits to suggest that Magnit could overtake X5 as Russia's largest retailer this year....
- 10 things to learn: Campbell's plans for growth
- On the money: Unilever aims to get food growing
- Mead Johnson wrestles "irrational" Chinese market
- Will Bonduelle swoop for Green Giant?
- Interview: Flapjacked looks to ride protein wave
- Unilever sees growth in food, refreshments
- Hain Celestial buys plant-based food firm Mona
- UPDATE: Danone merges Dumex with Mengniu
- Danone eyes "return to growth" in fresh dairy
- Aryzta acquires Ireland's La Rousse