Store Renewals Impact Mercator Revenue In H1
Slovenian retailer Mercator Group has ended the first half of 2016 with revenue of €1.25 billion, down by 3.3 per cent on last year due to harsh market conditions and the cost impact of store refurbishments.
The drop in total revenue is a result of fewer retail units, especially in the home products, apparel, and beauty sectors, in the markets of Slovenia and Serbia, where the number of stores decreased by 15 per cent.
The largest drop of revenue was in Croatia, where the entire FMCG program was included by the end of June 2015 into the consolidation process within the Mercator Group.
The Slovenian market accounted for 57.1 per cent of total revenue, followed by Serbia (35.1%), Montenegro (4.5%), Croatia (2.3%) and Bosnia and Herzegovina (1.0%).
Operating profit in the same period was €21.19 million, while net profit amounted to €7.05 million.
Mercator Group investments in H1 amounted to €32.3 million (+21.6%), with 102 stores renovated fully or partially in the last 18 months.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.