Slovenian retailer Mercator Group ended 2017 with a net loss of €184 million, but recorded a growth of net retail revenue to €1.6 billion (+2.5%), the first retail growth since 2011. In the same period, EBITDA increased 145.4% to €90.6 million.
Although one-off events and real estate revaluation adjustments had a significant impact, performance results have improved from the previous financial year. Without the negative non-recurring events, the group wrapped up last year with a profit of €6 million, compared to a loss of €31 million in 2016.
Store Network Refurbishments
The retailer was intensively focused on refurbishing the retail network in 2017. In Slovenia, one new store was opened and 100 existing ones refurbished; in Serbia, 12 retail units were opened and 36 refurbished, while in Montenegro there were eight new openings and 26 refurbishments. In 2017, Mercator re-entered the market of Bosnia and Herzegovina, following the rebranding of Konzum stores.
At the end of 2017, the number of retail units stood at 1,240 (+2.6%), with 7156 located in Slovenia, 333 in Serbia, 113 in Montenegro and 78 in Bosnia and Herzegovina.
Mercator Group is the market leader in Slovenia (30% market share) and Montenegro (21% with the Idea banner), and the second biggest player in Serbia (9%, with banners Idea, Roda and Mercator) and Bosnia and Herzegovina (5%).
2017 Highlights
Other highlights in 2017 included the resumption of the monetisation project that kicked off successfully with the divestment of Mercator Centre Belgrade, and the reduction of debt through deleveraging efforts.
The Group had a total of 1.7 million members signed up to its customer loyalty programs across the region (Pika, Super Kartica), of which 675,000 were situated in Slovenia and 620,000 in Serbia.
Innovations for 2018 include the launch of a digital wallet via the Moj M application in Slovenia. Customers will be able to access operations with the Pika card and use digital services that Mercator offers to its customers.
The majority shareholder of Mercator Group is Croatia’s Agrokor consortium, which owns 69.5% of the shares.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
