Swiss retailer Coop has reported a jump in annual sales due to the takeover of wholesaler TransGourmet, as the power of the Swiss franc weighed on its retail sales.
In 2011, total revenues, including wholesale trade and retail, rose 38.9% to CHF27.8bn (US$2.9bn).
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The results were bolstered by the performance of Germany-based food wholesaler TransGourmet, which Coop acquired in January 2011. TransGourmet now has 108 cash & carry stores and generated CHF8.2bn in revenue, which corresponds to a currency-adjusted growth of 5.4%.
Retail sales fell by 0.9% to CHF18.4bn, which the company said is a result of the “extraordinary strength” of the Swiss franc, which caused a sharp increase in “shopping tourism” – where domestic consumers go over the border to France, Italy and Germany to buy cheaper goods in Euros.
Coop said the effect of this was partially mitigated by “tough, fair and successful” price negotiations with international brand manufacturers.
Its online shop grew sales 12.8% to CHF200m, a result the retailer described as “gratifying”. At the end of 2011, Coop had a total of 2097 outlets, a net increase of 177.
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By GlobalData
