Russia's O'Key Cites Competition, Inflation, As Reasons For Sales Decline
Russian retailer O'Key Group has reported that weakened consumer sentiment, rising inflation and increased competition were all factors that contributed to its reduction in revenue in full-year 2018.
The group reported that underlying group revenue, excluding the effect of the sale of its supermarket business, fell by 1.1% for the year. IFRS [International Financial Reporting Standards] group revenue decreased by 8.4% year on year, to RUB 161.3 billion (€2.2 billion).
At its hypermarket operations, revenue was down 3.4% (IFRS revenue down 10.9%), while its DA! discounter business saw revenue rise by 31.9%.
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