Dixy's Growth Slowdown Continues, FY Target Missed
Published on Jan 29 2014 11:36 AM in Retail
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