Belgian retailer Colruyt has posted a 3.0% increase in revenue, to €4.6 billion, in the first half of its financial year, to 30 September.
It attributed its performance to organic growth, sales price inflation, and sales area expansion, noting that there was a negative calendar effect of 2.0% this year, due to fewer sales days.
Market Leader
The retailer also increased its position as a market leader in Belgium during the period, seeing its market share rise to 32.4%, up from 31.9% in the same period last year.
Operating profit for the period was €252 million – a 9.2% increase on the €232 million that it reported for the same period last year.
‘The retail market became less competitive in the second half of last year, a trend that continued in the first half of 2018/19,’ Colruyt noted in a statement. ‘The Colruyt banner continues to deliver on its brand promise and guarantees its customers the lowest price for each product at each moment.’
Banner Performance
In terms of the performance of its banners, the revenue of Colruyt in Belgium and Luxembourg saw a 1.7% sales rise, while in France, the Colruyt banner increased by 11.6%.
Its Okay, Bio-Planet and Cru brands reported aggregate revenue growth of 6.9%. Dreamland and Dreambaby saw store revenue decline by 7.1%, however.
Revenue from the group’s wholesale and foodservice segment rose to €469 million – an increase of 1.2%, compared to last year. The wholesale business accounted for 10.2% of the group’s consolidated revenue for the period.
Looking ahead, Colruyt said that it ‘expects the retail market to remain competitive in the financial year 2018/19. The group does not anticipate a significant upturn in the economic climate for the consumer in Belgium and France in the short term.’
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine
