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Retail

Lenta Reports Sales Growth Of 8.6% In FY 2021

Russian retailer Lenta has reported an 8.6% year-on-year growth in sales to RUB483.6 billion (€5.51 billion) in its financial year 2021.

Retail sales amounted to RUB475.8 billion (€5.42 billion), up 8.8% compared to the same period last year,

Like-for-like sales increased by 2.4%, while the LFL average ticket grew by 4.7%.

The company saw a 208% growth in online sales during the year, to RUB19.3 billion (€220 million), with online orders up 221% to 10.4 million.

Commenting on the company’s performance, Lenta chief executive, Vladimir Sorokin, said, “In addition to our robust operational performance in 2021, the year also was marked by several significant milestones in Lenta’s development, setting the stage for the company’s continued growth.

“After announcing our new strategy in March, we quickly got to work with multi-format organic expansion, digital business development, and the strategic acquisitions of Billa, Semya, as well as Utkonos.”

Other Highlights

The company opened 376 new stores and 12 stores were closed, resulting in the addition of 364 new stores in 2021.

New openings resulted in a 15.6% year-on-year growth in its total selling space.

The total number of stores operated by the company as of 31 December 2021 was 757, comprising 254 hypermarkets and 503 small-format stores.

Fourth-Quarter Performance

In the fourth quarter, the retail chain reported an 18.6% increase in sales to RUB147.3 billion.

Retail sales generated RUB144.8 billion, representing an 18.9% growth compared to the fourth quarter of 2020.

Like-for-like sales increased by 7.0%, while the LFL average ticket grew by 10.4%.

Sorokin added, “The fourth quarter of 2021 was the best-performing quarter of the year in terms of sales, thanks to traditionally strong seasonal shopping in December at our hypermarket stores, expansion in small formats, and the continuing development of our online business.

“This was made possible by the commendable efforts of Lenta’s employees, despite the continuing challenges caused by the COVID-19 pandemic.”

Online sales saw a 128% year-on-year growth to RUB7.0 billion, with online orders up 114% to 3.6 million.

The retailer accelerated the rollout of its Mini format during the quarter, adding 85 new stores.

Outlook

In 2022, the company plans to focus on its overall performance, enhance the efficiency of its core business, accelerate the rollout of small-format stores, and develop its online business further.

The company will also work on the phased integration of the Utkonos business, with which it hopes to capture meaningful synergies and unlock long-term value in its combined online business.

“Despite the challenging macroeconomic situation due to rising inflation and the ongoing COVID-19 pandemic, we stay committed to our mission to help our customers live a better life by spending less,” Sorokin added.

© 2022 European Supermarket Magazine. Article by Dayeeta Das. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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