German retail conglomerate Metro AG has posted a 0.8% increase in sales in the first quarter of its 2017/18 financial year, posting preliminary sales of €10.1 billion for the period.
Reported sales growth was 0.2%, despite ‘significant negative currency effects’, the group said. Growth in local currency was +1.5%.
"We had a solid Christmas quarter in a challenging market environment,” said Olaf Koch, Chairman of the Management Board of METRO AG. “The group's sales in the first quarter are in line with our outlook for the full financial year; we remain committed to our guidance for the 2017/18 financial year".
Wholesale Growth
The group said that its Metro Wholesale business posted a 1.0% increase in like-for-like sales to €8.1 billion, as a result of a strong performance at the group’s Eastern European operations.
Reported sales growth was 0.6%, despite adverse currency effects in countries including Turkey and China, the group said. Its store network (760 stores) increased by a net nine new outlets since the same period last year.
Real On the Rise
Its Real hypermarket business, meanwhile, posted flat like-for-like sales (0.0% growth) year on year, with sales of €2 billion for the period.
The group said that Real started the new financial year with a ‘solid performance’, posting a reported sales decline of 0.5% that was influenced by the ‘significantly negative effect of reduced trading days’.
Some nine stores in the Real chain have now been re-positioned and renovated, with a stronger focus on fresh and bio products, incorporating the experiences from Markthalle Krefeld.
It currently operates 281 Real stores, one less than at the same period last year.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
