French retailer Système U has reported a turnover of €23.88 billion in its 2022 financial year, a 4.0% increase excluding fuel, while turnover including fuel topped €30 billion for the first time.
The retailer, which holds a 11.6% share of the French grocery market – 'reinforcing its position' as the fourth biggest player in the sector, it said in a statement – said that all its formats were in growth last year, however its proximity stores performed the strongest.
Proximity Leads The Way
Its Utile proximity channel reported a 12.3% increase, while U Express was up 8%, Super U rose by 3.9% and Hyper U reported a marginal turnover increase of 0.3%.
'Mostly located in towns with less than 5,000 inhabitants, Système U is at the heart of the lives of French people living in rural areas,' the company said. 'This proximity enables the brand to support them better in their purchasing behaviour, which has been observed since the COVID-19 pandemic.'
The group reported that heightened inflation is leading to a decrease in the average basket value at its stores, to €39.40, however store visits have returned to pre-pandemic levels, with some 523 million transactions reported last year.
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Products At Cost Price
Its Hyper U and Super U banners have implemented a price promise on 150 U-branded products, which are being sold at cost price, easing the burden for shoppers in a high inflationary environment. Elsewhere, it has reinforced the benefits of its loyalty programme, as well as increased the number of promotions it offers, it said.
The group's e-commerce channel also continue to grow, with CoursesU.com, seeing sales up 1.8% year-on-year. This comes after it topped the one-billion-euro mark for the first time in 2021.
"These results confirm once again the relevance of our model, based on proximity with our customers, but also the trust of our partners," commented Dominique Schelcher, president of Système U.
© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.
