Russia's Lenta Sees Sales Up 4.6% In Third Quarter, As Online Sales Surge
Russian retailer Lenta has posted a 4.6% increase in sales in the third quarter of its financial year, to RUB 102 billion (€1.12 billion), saying it was 'continuing to adapt' to changing consumer behaviour.
Like-for-like sales for the period were up 3.0%, with average basket size growing by 9.2% and traffic down by 5.7%.
Online sales were up RUB 1.3 billon in the quarter, a massive 551% increase year-on-year.
'Swiftly And Efficiently'
"While 2020 has been an unprecedented year for the retail industry, I am extremely proud of how swiftly and efficiently Lenta has adapted to the ever-evolving market conditions due to COVID-19," said Vladimir Sorokin, chief executive, who was appointed during the period.
"At all times we have made the safety and well-being of our employees and customers our highest priority. These measures have paid off as local authorities didn’t close any of our stores and consumers felt it is safer to shop at Lenta. As a result, some customers made Lenta their store of choice and spent more at our stores."
Lenta added a net six stores in the period, with two new hypermarkets and five new supermarkets opening, and one supermarket closing.
Sorokin added that the group is 'looking forward' to unveiling a new long-term growth strategy early next year.
"During 2020, Lenta has again proven itself to be resilient and adaptable to changes in consumer behaviour," he said. "That said, there is further scope to fine-tune the business model in response to shifts in demand patterns and the external environment.
"In the interim, we will remain focused on the key factors that affect the choices our customers make daily, such as an attractive and relevant assortment that emphasizes quality rather than quantity and is a great value for money proposition for a wide range of consumer groups.”
© 2020 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.