Belgium-based Colruyt has announced first quarter results for the period ending 30 June saying that consolidated revenue increased by 2.8% to €2.1 billion, aided by its 'consistent application of the lowest prices strategy'.
Colruyt banner drives growth
The retailer's performance was driven by its Colruyt banner, where revenue grew by 3.4% to €1.6 billion. Colruyt said that its shoppers remained appreciative of its 'lowest prices strategy', which it said had helped it gain share in the market. While strong, the pace of growth is below the retailer's guidance of sales growth of between 4-6%, which it attributed to 'a negative calendar impact and poor weather'. Revenue through other operations grew by 2.4% to €185.9 million, aided by the addition of new DATS 24 stores and greater volume sales across all sites.
Wholesale driven by SPAR success
The retailer said that its wholesale division had seen revenue growth of 2.9%, which Colruyt attributed 'mainly... to the strong sales figures of the Spar business activity'. However, the Wholesale and Food service division saw flat sales overall due to a 4.3% contraction in sales at the food service arm, which Colruyt said was 'caused by the optimisation of the French customers portfolio, resolutely carried through to allow the French organisation to prepare for more profitable growth opportunities'.