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Lenta Reports Retail Sales Growth Of 7.3% In FY2020

Published on Jan 25 2021 11:29 AM in Retail tagged: Trending Posts / Lenta / Russia / Annual Report

Lenta Reports Retail Sales Growth Of 7.3% In FY2020

Russian retailer Lenta has posted retail sales growth of 7.3% to RUB438 billion (€4.8 billion) in full-year 2020.

Despite changes in consumer behaviour due to the pandemic, the retailer saw an 11.6% growth in average ticket in hypermarkets as well as supermarkets.

Sales in hypermarkets were up 7.1% year-on-year to RUB399 billion (€4.4 billion), while supermarket sales increased 9.3% to RUB38.2 billion (€420 million).

The company reported ‘strong’ like-for-like sales growth of 5.4% in its financial year 2020.

'Solid' Growth

Lenta chief executive, Vladimir Sorokin, “Lenta closed the year on a strong footing, with solid retail sales growth across our hypermarket, supermarket and online formats.

“I’m proud that we managed to achieve these results while maintaining our unwavering commitment to the safety and well-being of our customers and employees.”

Online sales increased 716% to RUB6.3 billion, with online orders up 566% to around 3.2 million.

The retailer expanded its online services to 88 Russian cities, up from 27 cities in the corresponding period in 2019.

In 2020, Lenta added 13 new stores to its network, taking the total number of retail outlets to 393 and total selling space to 1.52 million square metres.

Quarterly Performance

In the fourth quarter, Lenta reported a year-on-year sales growth of 5.7% to RUB122 billion.

The company attributed this growth to a 12.4% increase in average ticket, which was partially offset by a 3.9% decline in the number of tickets.

During the quarter, online sales amounted to RUB3.1 billion, up 933% year-on-year, while orders grew more than tenfold.

Sorokin added, “December sales were traditionally strong, as seasonal shopping drew customers into Lenta stores ahead of the extended January holidays, which many of our customers spent at home.

“In addition, our freshly-revamped loyalty programme and successful seasonal promo activities provided strong momentum into the new year.”

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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