Israeli supermarket chain Shufersal has reported a 3.1% increase in revenue in the first half of its financial year, to NIS 7.4 billion (€1.8 billion).
In the second quarter, revenues totalled NIS 3.7 billion (€900 million), on a par with last year, the Tel Aviv-based group said.
Operating profit in the first half came in at NIS 303 million (€73.8 million), up from NIS 209 million (€50.9 million) in the corresponding period last year.
'Stability And Diversification'
"The performance in the second quarter testifies to the strength of the group and its ability to navigate a challenging business environment," commented Itzik Abercohen, chairman of the Shufersal board of directors and Uri Waterman, CEO of the Shufersal Group.
"We are witnessing stability and diversification in the core activity in retail, while consistently improving the profit indicators. The focus on profitability has brought us to a position of strength and an improvement in the flexibility of our operating model, following the process of streamlining."
Retail sector revenues at the business came in at NIS 3.42 billion in the second quarter, a 0.4% decline on the same period last year, due to seasonality effects, it added.
Online And Private Label
The group maintains a strong online retail presence, with its Shufersal Online business totalling approximately 17.1% of all retail sales in the second quarter – this is down from 18.2% for the same period the previous year, due to the weakening of the COVID-19 crisis, as well as a reduction in non-food sales.
Elsewhere, private-label sales accounted for 26.6% of total food retail sales in the second quarter, on a par with that of last year (26.7%).
"We continue on a clear and consistent path of long-term growth while strengthening trade, improving the structure of expenses, establishing the technological infrastructure, promoting online trade through Shufersal Online and deepening the synergy between the group's various activities," Abercohen and Waterman said.
"The group is advancing in food retailing alongside a variety of growth areas, including Shufersal for businesses, the Be chain, the stock network and the real estate activity, which is now a separate company working to initiate and improve its assets."
SPAR Agreement
Last December, Shufersal announced plans to establish a network of SPAR outlets in Israel, under a partnership with SPAR International and Israeli businessman Amit Zeev.
That deal was confirmed in March, with the joint company to run the operation set to be 19.9% owned by Shufersal and 80.1% owned by Zeev.
