Slovenian retail group Mercator opened 37 new stores and two distribution centres in the first nine months of 2015.
Mercator Group also sought and evaluated new potential locations for expansion of the retail network for all Mercator programs, as well as for a new logistics and distribution centre in Slovenia.
The retailer has a total of 1,429 sales unit at the end of September, of which 940 were of the FMCG type.
IN the nine months, investments amounted to €47.4 million, nearly three times the amount invested in the equivalent period of 2014. Of this amount, 57% was invested in Slovenia, for the refurbishment of 17 neighbourhood stores, seven supermarkets, three hypermarkets, and one convenience store.
Mercator Group generated €1.95 billion of net sales revenue (-2% y/y), while operating profit increased threefold to €61.2 million.
The improvement is a result of focus on the core trade activity in the markets of Slovenia, Serbia, and Montenegro, better performance in non-core activities, considerable cost cuts resulting from cost rationalisation efforts, and divestment of some non-strategic operations.
In the private label segment, Mercator introduced yeast-free bread, a new line of grilling product called Grill Chef, new flavours of ice cream and fruit beverages and a new collection of Olea Sun products. Also under development is a product redesign from 'Bio to 'Biozone'.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
