Russian retailer Dixy Group has posted a 19% jump in first quarter revenue in ruble terms, benefitting from consumers who are turning to the discount food group to cut grocery bills.

Inthe three months ended 31 March, Dixy saw sales rise to RUB1.1bn (US$392m). The company saw strongest growth at its large-scale Megamart format, where sales gained 39% year-on-year.

However, in a statement the Russian retailer said that sales gains were held back by logistical and quality issues. During the period, the company invested in increasing its warehouse capacity and implementing new logistics and IT systems.

“We make every effort to fix the existing logistics issues and show positive dynamics in our LFL sales growth by the end of H1,” the company said.