Portuguese retailing group Jerónimo Martins has revealed that its preliminary net sales grew by 8.3 per cent to reach €13.7 billion in 2015, adding that the sales delivery of its Biedronka, Pingo Doce and Recheio banners were consistently sound throughout the year.
The offer enhancement in Biedronka led to strong volume growth, which compensated for basket deflation registered in the year, and company sales rose 9.2 per cent to €9.2 billion.
Pingo Doce delivered growth of 5.4 per cent, fuelled by 4.6-per-cent like-for-like sales growth (excluding fuel), while Recheio sales grew by 4.1 per cent to €832 million. Meanwhile, Ara reached sales of €122 million and ended the year with 142 stores in two regions.
Jerónimo Martins’ business in both Poland and Portugal continued to face a market strongly driven by promotions, where consumers remained value oriented.
Food inflation in Poland was negative in the first nine months of the year (-2.2 per cent), but turned marginally positive in October (growing 0.4 per cent) and in November (0.1 per cent).
Biedronka’s strategy in Poland, therefore, was to improve its offer to increase its relevance among shoppers and to grow its share of wallet. As a result, the retailer saw strong volume growth throughout the year and sales of €9,205 million, an increase of 9.2 per cent.
In Portugal, food inflation for the country remained positive across 2015, at an average of 1.1 per cent.
Pingo Doce maintained an intense promotional strategy, but also revamped its stores while improving customer service. Like-for-like sales of 4.5 per cent (excluding fuel) and new store openings led to sales growth of 5.4 per cent in 2015 to reach €3,407 million.
Jerónimo Martins commented, “The achievements in 2015 reinforced consumer focus in all our companies and strengthened the competitiveness of our models, positioning them to continue performing strongly.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.
