Konzum Sales Down 10.8% In Five Months
Croatian supermarket chain Konzum has experienced a decrease in sales of 10.8% in the first five months of 2017 compared to the same period last year.
In an interview for the N1 TV station, the Croatian government commissioner for Agrokor, Ante Ramljak, said that the drop was lower than expected. He expects that, once the financing for new goods and stocks is secured and stores are supplied, Konzum will see revenue growth and will end the year with profit.
Asked whether this will lead to the closure of unprofitable stores, Ramljak did not want to mention any figures, but said that the restructuring process will start at the end of summer and will involve closing a certain number of outlets.
The financial problems suffered by Agrokor and its retail chain Konzum have led to some small and mid-sized suppliers distributing their products to other retail chains in Croatia. Index reports that 15% of farmers have started supplying their products to other supermarkets.
Lidl and Kaufland seem to be the main beneficiaries, with mainly fruit and vegetable producers switching their business to these chains. Also, Croatian confectionery producer Kraš has started supplying its chocolate products to Lidl for the first time.
The report suggests that if Konzum survives by the end of the year, there could be a massive exodus of suppliers to other retailers during the period when negotiations on supply contracts are held.
© 2017 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