Portugal's Sonae MC Sees Highest Growth In Decade
Portuguese retail group Sonae MC has reported a 9.2% increase in sales in full-year 2019, to €4.7 billion in 2019, while like-for-like sales were up 3%.
This is the retailer's biggest growth in turnover in more than 10 years, with Sonae MC seeing a positive performance across all its banners.
Sales in the group's hypermarkets rose 1.9% to €1.65 billion, while supermarket sales increased 7.9% to €2.24 billion (+3.1% LFL).
In the retailer's 'New Growth Businesses & Others' segment, turnover was up 32.9%, to €810 million, which was boosted by the purchase of the Spanish chain Arenal.
“We are very pleased with our trading performance in 2019, with outstanding total and like-for-like sales growth figures, and a robust fourth-quarter closing the year," commented Sonae MC Luís Moutinho.
"Our strategy was exemplarily executed throughout the full-year, and we continued to make important progress across all aspects of the shopping experience, endorsed by an attractive proposition and record top of mind awareness."
In terms of store formats, Continente hypermarkets showed solid growth, while Continente Modelo and Continente Bom Dia showed a dynamic performance, benefiting from increased demand for convenience.
Highlights include the international expansion of the Health & Wellness business, through the acquisition of Spanish parapharmacy and perfumery retail company Arenal.
Sonae MC opened 91 stores in 2019, of which 13 were Continente Bom Dia stores and three Continente Modelo outlets, increasing the gross sales area by 36,000 square metres. The group ended the year with 1,228 outlets (directly owned and including franchises).
"Now, we look forward to 2020 with a clear focus and solid foundations on which to continue to grow and exceed consumers’ expectations, confident in our ability to navigate with success the challenges ahead," Moutinho added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine