X5 Retail Group, Russia’s largest retailer by turnover, forecast “conservative” sales growth today (9 October), despite an increase in net retail sales for the first nine months of the year.
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Consolidated net retail sales increased 38% year-on-year in rouble terms to RUR196.61bn (US$6.64bn) or 2% in US dollar terms.
Like-for-like sales grew 11% in rouble terms year-on-year on the back of 5% traffic
growth.
Throughout the first nine months of 2009, X5 said it continued to invest in its customer value proposition and restrain price increases despite inflationary pressures.
Prices on X5’s shelves increased on average by 7.3% year-on-year compared to officially reported food inflation in Russia of 9.9% for the same comparison period.
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By GlobalDataAs a result of the persistence of trading down trends among consumers and expected
pressure on average purchase size in the fourth quarter 2009, X5 revised its full-year
revenue growth outlook to a more “conservative” range of around 24-25% in rouble
terms on a pro-forma basis.
“X5 delivered another strong quarter of customer traffic growth in a tough economic
environment. We continue to win market share and outperform the competition thanks to our ‘close-to-the-customer’ strategy and ability to hold down prices,” said Lev Khasis, X5 Retail Group CEO.
However, Khasis added: “Trading down persists and we do not yet see signs of recovery in consumer behaviour. We expect these external factors to put further pressure on average purchase size and top line performance in the fourth quarter, which is the reason for our more conservative sales growth outlook.”
