RUSSIA: X5 Retail H1 LFL sales fall

By Michelle Russell | 13 July 2012

Like-for-like sales drop 2.5%
LFL pressure eases in Q2
Sales at soft discounters improve

X5 attributed the increase in net retail sales to an increase in promo-activities and marketing campaigns

Russian retailer X5 Retail Group has reported a fall in half-year sales, although there are signs its performance could be improving.

In the six months to the end of June, like-for-like sales dropped 2.5%. However, the decline in like-for-like sales eased in the second quarter. Like-for-likes were down 1.1% in the April-June quarter, compared to a decrease of 3.9% in the first three months of the year.

X5, Russia's largest retailer by sales, said its half-year group sales increased 7.2% to RUR240.32m (US$7.35bn).

Second-quarter sales were up 10%. X5 pointed to an increase in promo-activities and marketing campaigns, improvement in availability, improved like-for-like results at soft discounters and the performance of maturing stores added over the past two years, including former Kopeyka stores.

X5 this morning announced the immediate departure of its CEO Andrei Gusev.

Show the press release

X5 RETAIL GROUP REPORTS Q2 & H1 2012 TRADING RESULTS (1)

Amsterdam, 13 July 2012 - X5 Retail Group N.V. ("X5" or the "Company"), Russia's largest retailer in terms of revenue (LSE ticker: "FIVE"), announced today the Company's preliminary consolidated net retail sales and operational performance for the second quarter (Q2) and first half (H1) of 2012.

Q2 2012 Highlights

· Consolidated net retail sales (sales) increased 10.0% year-on-year (y-o-y) in Rouble (RUR) terms to RUR 123,446 million (mln);
· Sales increased y-o-y by 11.1% due to organic expansion, which was offset by a 1.1% decrease in LFL sales;
· Soft discounters LFL sales increased by 2.1% y-o-y;
· In June 2012, total LFL sales increased by 2.9%, driven by a 6.5% increase in soft discounters LFL sales;
· 159 stores were added on a net basis, including the opening of 148 soft discounters, four supermarkets, 19 convenience stores and 12 store closures;
· Net addition of 50 thousand square meters (sq. m.) of selling space.

H1 2012 Highlights

· Sales increased by 7.2% y-o-y to RUR 240,325 mln;
· Sales increased y-o-y by 9.7% due to organic expansion, which was offset by a 2.5% decrease in LFL sales;
· 296 stores were added on a net basis, including the opening of 274 soft discounters, 11 supermarkets, 35 convenience stores and 24 store closures;
· Net addition of 93 thousand sq. m. of selling space.

Original source: X5 Retail

Sectors: Emerging markets, Financials, Private label

Companies: X5 Retail Group

View next/previous articles

13 Jul 2012 -

On the move: Poundland makes strategic move with Higginson appointment

13 Jul 2012 -

UK: Greencore calls for union talks on Hull plant changes

Currently reading -

RUSSIA: X5 Retail H1 LFL sales fall

13 Jul 2012 -

US: Cargill to acquire Fort Worth beef facility

13 Jul 2012 -

SPAIN: Panrico tight-lipped over Valladolid plant closure talks

There are currently no comments on this article

Be the first to comment on this article

Related research

X5 Retail Group N.V. : Retail - Company Profile, SWOT & Financial Report

Synopsis Canadean's "X5 Retail Group N.V. : Retail - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major products and services...

Food Retail in Russia

Food Retail in Russia industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including key financ...

Agricultural Products in Russia

Agricultural Products in Russia industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including ...