Belarus-based retailer Eurotorg has posted 7.6% year-on-year growth in net retail sales to BYN 1.13 billion (€500 million) in the third quarter of its financial year, ended 30 September 2019.
However, the company's like-for-like sales declined by 3.5% during the quarter.
Negative like-for-like traffic of 4.0% was partly compensated by moderate growth of 0.6% in like-for-like average ticket, the retailer said.
Despite being in the red, Eurotorg's like-for-like traffic has been gradually improving in the last two quarters.
'Changes In Priorities'
Eurotorg chief executive, Andrei Zubkou, said, "The operating results for the third quarter of 2019 reflect changes in the company’s priorities for its future development.
"Due to our focus on high-quality growth and the stability of our customer offer, we have moderated the pace of retail chain expansion."
Net retail sales for the first nine months increased by 11.7% year-on-year to BYN 3.34 billion (€1.5 billion).
The company’s online grocery services – E-dostavka.by and Gipermall.by – generated 2.7 million orders and revenue of BYN 153.1 million (€67.8 million), up 13.9% year-on-year, in the nine months to 30 September.
Other Highlights
Eurotorg expanded its regional presence to 15 new localities across Belarus in the third quarter. It is now present in 346 localities in the country, with 1,011 stores and total selling space of 355,600 square metres.
The retailer continued to focus on developing smaller format stores, with an average selling space of 155 square metres for new grocery stores launched in the third quarter.
Most of the new outlets were opened in leased premises, in line with the company’s strategy of asset-light expansion.
It also continued to expand the new Hit! banner of grocery discounters, with 15 new openings during the quarter.
The retailer also closed some Magia drogerie stores during this period, as part of a regular review of the optimal store format for the business.
The move did not affect the company’s financial results due to flexible lease agreements, the retailer said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
