Slovenia-based retail group Mercator has reported a loss of €103.6 million for the 2012 fiscal year, posting flat revenue growth of €2.873 billion.
The retailer, which has a network of stores across south-eastern Europe, said three quarters of its recorded loss is accounted for by write-offs and impairments.
The group has announced its exit from Albania and Bulgaria, with losses recorded in both countries, totalling €2.3 million and €6.6 million, respectively. Its Getro banner in Croatia will be "shrunk".
2013 will see the group restructure its business in an attempt to reverse its negative performance in the current year. Mercator said it will "optimise" its retail unit operations, enhancing supply chain efficiencies in Slovenia and Croatia by the second half of 2014 and focusing on smaller store formats.
The Mercator Group, which is rumoured to be in sales talks with Croatian conglomerate Agrokor, aims to be "the largest, the most successful and the most efficient retailer in the region." (1 Feb)
© 2013 - ESM: European Supermarket Magazine by Kevin Kelly
