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Retail

O'Key Group Reports Growth In Net Retail Revenue In Q2 2020

Russia's O'Key Group has posted 7.4% growth in net retail revenue on a like-for-like (LFL) basis in the second quarter of its financial year.

The company attributed this growth to a 40.4% increase in the average LFL ticket.

Group net retail revenue for the quarter amounted to RUB 41.9 billion, up 6.1% year-on-year, from RUB 39.5 billion in the second quarter of 2019.

Divisional Performance

The company's DA! discounter business saw a 50.8% year-on-year jump in net retail revenue to RUB 6.9 billion in this period.

This was driven by a 34.7% increase in like-for-like net retail revenue and expanded selling space, the company said.

The O'Key hypermarkets division witnessed a 0.2% year-on-year growth in net retail revenue to RUB 34.97 billion, on the back of 3.7% like-for-like net retail revenue growth.

Second-Quarter Highlights

The company witnessed a change in customer behaviour in the second quarter, with shoppers stockpiling on food and reducing their frequency of visits due to the COVID-19 pandemic.

In the food segment, frozen and canned goods; fresh fish and meat; fruit and vegetables; cheese, deli and the wine selection emerged as the top-performing categories in the second quarter.

O'Key hypermarkets benefited from its assortment of non-food items, such as goods for home and garden, clothes and shoes, sports goods, consumer electronics, and home appliances, which saw the fastest revenue growth during the quarter.

The company added that this revenue growth was supported by its ongoing efforts to ensure the availability of goods and offering customers a safe, one-stop shopping experience.

First-Half Results

The retailer reported 7.3% growth in net retail revenue growth on a like-for-like basis in the first half of its financial year, driven by a 19.4% increase in the average LFL ticket.

DA! posted 47.0% year-on-year growth in net retail revenue to RUB 12.6 billion as a result of a 31.3% LFL net retail revenue growth and increased selling space.

Net retail revenue in O'Key hypermarkets increased by 2.0% year-on-year to RUB 71.7 billion.

This was driven by like-for-like net retail revenue improving by 4.3% in the first half compared to 2019, the company added.

© 2020 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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