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Dixy's Growth Slowdown Continues, FY Target Missed

Published on Jan 29 2014 11:36 AM in Retail

Dixy's Growth Slowdown Continues, FY Target Missed

Russia's third largest retailer group Dixy reported a slowdown in sales growth during the final quarter of last year, a time when most supermarkets experience the opposite trend.

In a statement released by the company yesterday, Dixy said that increased competition on consumer confidence issues were to blame for the falling growth. 

Sales at Dixy increased 17% in December compared to the same period in 2012. In October of last year, Dixy recorded a sales growth of 25% which fell to 24% in the month of November.

Other key Russian supermarket chains said their sales grew more slowly in the month of December, with Magnit forecasting a slowdown in the coming year.

Reteurs reported that Dixy reduced working hours in most neighbourhood stores last month in response to increased competition.

It also cut it full-year 2013 sales growth guidance from 25% to 23.5%.

FY sales were up 22.7% in the 12 months to the end of December, which was just off its revised target.

© 2014 - European Supermarket Magazine by Enda Dowling

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