German hypermarket operator Globus has reported a 2.4% increase in sales in its financial year to 30 June, to €7.76 billion, with managing director Matthias Bruch saying that the business is seeing "a lot of tailwind" in the market at present.
The group, which also operates stores in Russia, Czechia and Luxembourg, reported a 6.1% increase in operating profit in the period, to €301.3 million, compared to the previous year.
"The coronavirus pandemic has not thrown us off track, but has shown that we can use the challenges that lie ahead of us to develop significantly," Bruch commented at the group's annual press conference.
Germany Performance
In Germany, the group's 49 hypermarkets recorded sales growth of 3.4% to €3.5 billion, with the business noting that the introduction of the Payback scheme and the decision to join the RTG (Retail Trade Group) purchasing group are starting to bear fruit.
Even the lengthy closure of its in-store restaurants and dining areas failed to knock the business off-track, Globus SB-Warenhaus Germany managing director Jochen Baab added.
"We are experiencing a sustained, very positive economic development," he said.
Russia And Czechia
In Russia, the business reported a 5.8% increase in turnover to RUB 124.1 billion, despite the challenging economic situation, however in Czechia, sales fell by 3.8% to €1.02 billion, largely due to prolonged restaurant closures.
The business is also optimistic of future growth – its acquisition of 16 former Real hypermarkets will see its footprint grow by more than a third in the coming years.
Over the past year, it invested €336.6 million in both new store developments and store conversions, including former Real locations at Braunschweig, Krefeld and Essen. It also recently launched a new regional private-label brand, Globus Regional.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
