Inflation and not an increase in sales volumes helped drive revenues at Baltic retailer Maxima during 2011, its chief executive has admitted.
Maxima saw sales rise 6.5% last year to EUR2.25bn (US$1.87bn) on the back of increased revenue in each of its markets. The company did not disclose its profit numbers.
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General manager Mindaugas Bagdonavicius said Maxima’s higher turnover was due to the investment the retailer made in its store network and food inflation.
“It would be premature to say that consumption has been recovering. The growth of turnover in 2011 was determined by undergoing shopping network development and increasing inflation, but not by growth in quantity of product sales. Consumers still remain rational; they save, buy sale products and actively use discounts,” Bagdonavicius said.
The Maxima chief said 2012 was unlikely to see a “sharp recovery” in consumption. The retailer, he said, would focus on developing its fresh food offer and plan “sustainable development abroad”.
Maxima, which entered its fifth market in December when its acquisition of Polish retailer Aldik Nova, secured anti-trust approval.
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By GlobalDataThe acquisition added 24 outlets to a Maxima network that comprises 463 stores across the Baltic states, Bulgaria and Estonia.
