Belgian discounter Colruyt has seen first-quarter sales rise 14.7% thanks to its policy of keeping prices low at a time when consumers are looking to tighten their belts.
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Total sales rose to EUR1.57bn (US$2.47bn) during the quarter, the company said yesterday (28 July).
Colruyt’s retail sales at the group’s Colruyt, OKay and 5 Bio-Planet stores were up 13.2% to EUR1.2bn. Wholesale and food service revenues rose 14.5% to EUR260.5m and sales from other activities rose 33.5% to EUR109.3m.
The supermarket operator said that first-quarter sales growth was driven by its low pricing policy and Belgium’s increased inflationary climate, which has intensified competition between retailers.
“The Colruyt banner stores as well as the OKay stores provide an answer to the demand for the lowest prices in combination with high quality products,” the company said in its earnings statement.
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By GlobalDataColruyt said that by getting this offer mix right it had managed to increase its share of the market. However, the group did not elaborate on the size of its share gain.
Colruyt said it would be provide full-year profit guidance at its AGM in mid-September.
At the end of June, the retailer said it anticipated sales at its Colruyt banner stores to grow by 7.75% this year.
