Croatian grocery retailer Konzum has reported an 11% annual drop in revenue, to HRK 9.1 billion (€1.2 billion), in 2017.
The data has been sourced from the revised financial report of the company, according to the local daily Poslovni dnevnik.
The negative result was due to a drop in the number of customers and the closure of 80 stores last year. The takeover of Konzum’s drugstore chain, Kozmo, by Germany’s Müller in 2017 also contributed to the losses.
Konzum Continues To Lead
Despite the drop, Konzum continued to lead the Croatian grocery market, with a 22.4% market share.
While the company's results place it ahead of the second- and third-placed rivals put together, the differential between Konzum and its competitors has reduced significantly.
Lidl's revenues increased by 15%, to HRK 4.64 billion (€627.2 million), while its sister company, Kaufland, reported a 6.9% revenue drop, to HRK 3.6 billion (€486.6 million).
Croatian retailer Plodine's revenue went up by 10%, while Spar’s revenue increased exponentially, to 45%, albeit off a smaller base, due to the takeover of Billa’s operations in Croatia.
Period Of Stabilisation And Improvement
Konzum has pointed out that the second half of 2017 was a period of stabilisation and business improvement, leading to an increase in market share in Q4.
Overall, the turnover of retail trade in Croatia during the period from January to May 2018 was 5.3% higher year on year, compared to 4% for supermarkets and hypermarkets.
By the end of 2017, the total number of customers decreased by more than 6%, with the largest drops reported in April, May and June. The primary causes were lower liquidity and unavailability of goods. Market research shows that the restructuring process has resulted in improved price consideration on the part of consumers.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.
