ITALY: Sales up but profits down at Esselunga
Italian food retailer Esselunga has said it saw operating profit fall in 2013 as it moved to keep a lid on prices in the face of the country's weak grocery market.
Esselunga, which runs over 140 stores in Italy, said it estimated its operating profit at "over" EUR300m (US$406m), less than it generated in 2012. It did not publish a figure for net profit.
The company said the fall in profits was "partly" due to its "pricing policy". Esselunga said suppliers had pushed up prices by 1.8% but it held its own prices at the same level as 2012.
"Over the past two years in the face of price increases received for approximately 4% Esselunga has not transferred any price increase to their customers," the retailer said.
Sales were EUR6.9bn, up 1.7% on 2012. Esselunga said the result compared to a market that saw "a significant contraction in the consumption of food".
In 2013, the Italian grocery category continued to witness a relatively poor performance in value sales, with Italian consumers increasingly moving away from expensive discretionary spending, rational...
Introduction Food Retail in Italy industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The profi......
Agricultural Products in Italy industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2009-13, and forecast to 2018). The profile ...
Organic Food in Italy industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The profile also contains descri...
- 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
- Greencore profits lifted by on-the-go food focus
- Nestle to sell Jamaican dairy unit