Germany's Metro Group announced a 7.6% drop in turnover in the first quarter of their fiscal calendar because of competition from online rivals and a late Easter period. Sales for the period came in at €14.3 billion.
The retailer's net loss widened to €269 million, from a loss of €16 million a year earlier, which the company says is down to charges related to the sale of Hypermarket chain Real Eastern Europe. The company recorded a loss before interest, taxes and one-offs of €40 million, compared with earnings of €14 million last year.
Currency changes in countries including Turkey and Russia also hurt sales, the company said.
The retailer suffered a setback this year after its plans to float a quarter of its Russian cash-and-carry arm on the stock market had to be delayed because of the political turmoil in Ukraine.
Metro has also cut its outlook for its consumer electronics because of falling profits. Adding to the company's troubles, chief executive of Media-Saturn, Europe's largest consumer electronics chain which accounts for about a third of Metro's sales, quit on Tuesday amid a dispute between the firm's founder, Eric Kellerhals, and majority shareholder Metro.
© 2014 - European Supermarket Magazine by Enda Dowling
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