Belgian retailer Colruyt has increased its market share to 31.5 per cent, while also seeing its revenue rise by 2.9 per cent to €9.1 billion, according to its full-year financial results.
In the statement, Colruyt said that its gross profit was up 4.6 per cent (gross profit margin rose to 25.3 per cent), and that it ‘continues to invest in the long term’.
Revenue from retail activities grew by 4.0 per cent to €7.062 million. Retail accounted for 76.9 per cent of the group’s consolidated revenue.
‘Price pressure, fierce competition and a persistently difficult economic climate continue to characterise the Belgian and French retail market,’ the statement read. ‘There were few signs of economic recovery, and consumer confidence remained negative.’
Commenting on its performance, Barclays said, “Even though Colruyt continued to gain market share in Belgium at a dynamic pace last year (+50bps to 31.5 per cent), thanks to its continuing aggressive pricing strategy, this failed again to translate into a robust earnings growth. […] Operating expenses rose from 17.0 per cent to 17.4 per cent of sales, as Colruyt continued to recruit new employees (+1,500 full-time employees, representing an approximate 5-per-cent increase in its total workforce), while depreciation rose by 4.4 per cent, as the group also continued to invest in stores and build new DCs.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.