RUSSIA: Retailer X5 reports drop in Q1 like-for-like sales
- LFL sales down 3.9%
- Net sales up 4.4%
- 42,000 sq m selling space added
X5 saw LFL sales fall for second consecutive quarter
X5 Retail Group saw its like-for-like sales fall almost 4% in the first three months of the year, the Russian retailer reported today (11 April).
Like-for-like sales declined 3.9% in the three months to the end of March, X5, Russia's largest retailer by sales, said.
Like-for-like sales were hit by cannibalisation, a low level of advertising and promotion and tough year-on-year comparables. In addition, the firm said that its hypermarket business was "in transition" as it is separated from the supermarket business, but emphasised that profitability at this format had been preserved.
In the fourth quarter of 2011, X5's like-for-likes fell 2%.
However, year-on-year, the retailer's top line increased in the first three months of 2012. Consolidated net sales increased by 4.4% during the period, rising to RUB116.87bn (US$3.86bn) thanks to new stores.
During the period the company added 42,000 square metres of selling space. This, CEO Andrei Gusev said, positioned the company for "another record year of growth". X5 is targeting sales growth of 15-20% in the full year and and EBITDA margin above 7%, Gusev added.
Click here for the full release.
Jan Fuchs has become the latest senior executive to leave Russian retailer X5 Retail Group....
- How Danone aims to meet its 2020 objectives
- Greencore's food-to-go focus paying dividends
- Interview: Ritter sees growth potential in US, EU
- Will Belvita win at breakfast in China? - analysis
- Interview: How American Halal rides ethical wave
- Pinnacle to buy Boulder Brands in $975m deal
- Genius Foods buys UK gluten-free firm Chapel Foods
- Nestle combats Thai seafood supply forced labour
- US FDA approves genetically engineered salmon
- Nestle to sell Jamaican dairy unit