Reitangruppen has reported its 2018 results, with REMA 1000 discount turnover increasing by 4.8% to €7.3bn, while Reitan Convenience turnover increased by 1.4% to €1.7bn.
REMA 1000 turnover increased by 4.8% to NOK 70.2bn (€7.3bn)
REMA 1000 turnover including franchises increased by 4.8% to NOK 70.2bn (€7.3bn). Operating profit increased by NOK 243m to NOK 1.9bn (€197.9m), which represents a 0.2% increase in operating margin to 2.8%.
Norway: revenue growth of 4.4%
In Norway, which accounts for most of the REMA 1000 business, revenue increased by 4.4%, while like-for-like revenue increased by 1.6%.
Denmark: revenue growth of 11%
Meanwhile in Denmark, REMA 1000 saw revenue increase by 11% to DKK 15,407m (€2.1bn), while like-for-like revenue increased by 4.9%
Henrik Burkal, CEO of REMA 1000 Denmark has partly REMA’s success to the fact that all stores are operated as franchisees, with each franchisee only able to run one store.
REMA 1000 also launched over 20 new stores in Denmark in 2018, bringing its total store count to 326. This year, the discounter plans to launch 15 to 20 new stores in the country, with it seeing the potential for 400 stores in the future.
REMA 1000 2018 highlights: new DC, store data system and chicken factory
During the year, the discounter has established new distribution centres, a new store data system and a new chicken factory.
Reitan Convenience: turnover increased by 1.4% to NOK 16.1bn (€1.7bn)
Reitangruppen’s convenience channel, Reitan Convenience has reported its results for 2018, where turnover increased by 1.4% to NOK 16.1bn (€1.7bn), alongside operating profit of NOK 409m (€42.6m).
Norway: turnover declined by 0.9%...
Most formats saw turnover decline, with Narvesen kiosk sales declining by 1.9% to NOK 2,280m (€237.5m). Meanwhile, 7-Eleven City store turnover declined by 4.2% to NOK 705m (€73.4m) and 7-Eleven forecourts saw turnover decline by 0.3% to NOK 820m (€85.4m).
Meanwhile the Northland concept, which operates just five stores saw turnover increase by 41% to NOK 109m (€11.4m).
…While in Sweden turnover increased by 2.2%
Most formats saw turnover increase, with Pressbyrån kiosk sales increasing by 3.8% to NOK 2,862m (€298.1m). 7-Eleven City store turnover also increased by 5.5% to NOK 861m (€89.7m).
…In Finland turnover increased by 1.5%
The retailer’s R-Kioski banner saw turnover increase by 1.5% to NOK 3,001m (€312.6m), while comparable sales turnover increased by 5.0%
…In Denmark turnover increased by 0.6%
Denmark accounts for the highest share of 7-Eleven sales in the Nordics, including 7-Eleven City stores and 7-Eleven gas stations. At the 7-Eleven City stores, turnover increased by 1.2% to NOK 2,008m (€209.1m), while at 7-Eleven gas stations, turnover declined by 1.0% to NOK 750m (€78.1m).
Earlier this year, 7-Eleven Denmark invited us to see a new concept convenience store in Copenhagen. IGD Retail Analysis subscribers can access our exclusive store visit presentation here.
Source: IGD Research
Smaller Baltic markets reported strongest growth
- In Latvia, Narvesen store turnover increased by 6.2% to NOK 616m (€64.2m), while like-for-like sales increased by 6.5%
- In Lithuania, Reitan Convenience store turnover increased by 14.9% to NOK to NOK 339m (€35.3m), while like-for-like sales increased by 12.3%
- In Estonia, R-kiosk store turnover increased by 5.3% to NOK 281m (€29.3m), while like-food-like sales increased by 2.9%
Reitan Convenience highlights: new stores, coffee shop acquisition
During 2018 Reitan Convenience established around 50 new stores and acquired the Baltic coffee shop chain Caffeine, which has 60 stores in the region.
2019 will see the introduction of a new YX 7-Eleven forecourt concept
This year, Reitangruppen will introduce a new forecourt concept under the YX 7-Eleven.
IGD Retail Analysis subscribers can learn more about 'Global best practice in forecourts' including what's shaping development and how the format could innovate in the future.
Source: IGD Research
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