Metro Sees Slight Dip In Sales In Home Market In First Quarter
Wholesaler Metro AG has posted a 0.2% decrease in like-for-like sales in its home market of Germany in the first quarter of its 2018/19 financial year.
Reported sales went down by 1.3% in Germany, the group noted, due to the closing of a store the previous year.
In Western Europe, however, the group saw a like-for-like sales increase of 1.0%, due to ‘strong development’ in France, Italy and Spain, it noted. Reported sales in the region were up 1.2%.
Overall, like-for-like sales were up 2.3% in the quarter, with reported sales up by 2.1% in local currency, to €8.0 billion.
“Sales and earnings at Metro are in line with expectations,” commented Olaf Koch, chairman of the management board of Metro AG.
In Eastern Europe, the group posted a like-for-like sales increase of 6.4%, if Russia is excluded. Its Russian business saw like-for-like sales dip by 2.4%, which was less of a decline than the previous year, due to improvements in the pricing model and the expansion of the Fasol franchise model.
In Turkey, meanwhile, reported sales were up 0.8% due to negative currency effects.
The group’s Asian operation saw like-for-like sales rise by 5.9% in the first quarter, with sales growing by 6.9% on a local currency basis.
“Our measures taken in Russia are showing positive results,” Koch added. “Asia, Eastern Europe and the delivery business continue to develop dramatically. The increased focus on HoReCa and traders is paying off. We can confirm the outlook for the financial year 2018/19.”
While listed as a ‘discontinued’ business by Metro, its Real hypermarket arm saw like-for-like sales decrease by 0.6% in the quarter, with reported sales down by 1.7%, to €2.0 billion.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.