Slovenia-based retailer Mercator, which runs over 1,700 stores across south-eastern Europe, has blamed worsening economic conditions in the second half of 2011 for a fall in annual earnings.
Mercator booked net profit of EUR23.5m (US$31.3m) for 2011, down 22.5% on the year. The retailer said a “notable aggravation of the economic circumstances” during the back half of the year hit sales and led to a greater need for promotions. Unemployment, Mercator said, had reached “new historical highs” in some of its key markets in the region.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Pre-tax profits were down 20.8% at EUR31.9m, the retailer reported
The company saw its revenue improve, rising 5.3% to EUR2.93bn. Sales in Slovenia, which accounts for over half of Mercator’s revenue, fell 0.2%.
Mercator’s sales increased in each of its markets outside Slovenia. In total, sales outside Slovenia increased 13.9%, with the retailer pointing to acquisitions in Montenegro and Serbia.
In 2011, Slovenia accounted for 57.7% of Mercator’s sales, down from 60.9% a year earlier.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
