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.
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