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Retail

Fix Price Sees Like-For-Like Sales Up 4.4% In Third Quarter

Russian retailer Fix Price has reported a 4.4% increase in like-for-like sales in the third quarter of its financial year, with like-for-like sales up 25.9% on the same period two years ago.

Like-for-like traffic rose by 0.3% in the period, supported by promotional activities, while average ticket rose 4.1%, supported by the gradual repricing of the assortment and the introduction of new price points, the retailer said.

In terms of the first nine months of the year, Fix Price said that revenue was up 24.3% with like-for-like sales rising by 9.0%.

“Fix Price delivered strong results for the first nine months of 2021 despite the unprecedented challenges that all Russian non-food retailers have been facing," commented Fix Price CEO Dmitry Kirsanov. "As always, our number-one priority is to continue bringing our customers the most attractive pricing proposition in all of the markets where we operate."

Russia And Other Markets

In Russia, like-for-like sales were up 5.4% in the third quarter, however sales at company-operated stores in Kazakhstan and Belarus were heavily impacted by COVID-related restrictions, as well as a 'challenging macroeconomic environment'.

Reported revenue was up 17.8% in the third quarter, to RUB 57.9 billion (€710 million), driven by both new store openings and sales growth, Fix Price said.

Retail revenue increased 18.6% to RUB 51.2 billion (€630 million), while wholesale revenue rose 12.4% to RUB 6.6 billion (€81 million).

Gross profit was up 16.5% to RUB 18.4 billion (€230 million), with the group reporting a gross margin of 31.8%, which was broadly in line with that reported for the same period last year (32.1%).

Increased Store Count

During the third quarter, Fix Price saw its total number of stores increase by 168 to 4,753, of which 516 are franchised outlets, with the business on track to open approximately 730 new outlets during calendar year 2021. The total number of Fix Price loyalty card holders increased by 1.5 million in the period, to 15.4 million.

In terms of the first nine months of the year, Fix Price said that revenue was up 24.3% to RUB 164.0 billion, with like-for-like sales rising by 9.0%.

Like-for-like traffic was up 5.8%, while average ticket rose by 3.1%.

Remainder Of The Year

Looking ahead to the rest of the year, Fix Price exercised a note of caution amid rising coronavirus cases in its home market.

“While it is difficult to assess the overall impact of new measures being introduced to contain rising levels of COVID infections in Russia, we expect that the vast majority of our stores will remain open, as has been the case throughout the past 18 months, given that Fix Price is a systemically important retailer selling essential products, including food," commented Kirsanov.

"We were able to successfully adapt to the restrictions imposed in spring 2020 while continuing to maintain our growth trajectory. Amid the uncertainty, what we know for sure is that we will take all steps necessary to safeguard our employees and our customers."

In September, the group unveiled a new distribution centre in Krasnodar Krai to support its expansion. During the summer, it announced the opening of its 4,500th store.

© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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