Central & Eastern Europe news & analysis

13 February 2019
Russia’s retail market in 2018 faced stagnant household incomes and food price inflation. This led shoppers to become more economical with their spending. As a result, retailers had to compete more for their share of spend in groceries, which has led to a slowing in real sales growth rates. We look at the 2018 full year results and highlight how the leading Russian retailers managed in the fac...
12 February 2019
Hungary’s competition authority (GVH) has approved MediaMarkt’s acquisition of Tesco’s electronic business in nine of its stores. Although this impacts a small number of its 112 hypermarkets in the country, there are clear benefits to be gained by both retailers. Repurposing store space is already part of Tesco Central Europe’s strategy… Matt Simister, Tesco Central Europe CEO, announced ...
07 February 2019
ICA has reported that 2018 consolidated net sales increased by 5.4% to SEK 115,354m (€11bn). Operating profit excluding items affecting comparability marginally increased to to SEK 4,651m (€446m). Meanwhile, Axfood reported that consolidated net sales increased by 4.6% to SEK 48,085m (€4.6bn). Net profit increased by 7.5% to SEK 1,577m (€148.9m). ICA Sweden: net sales +3.9% ICA Sweden saw ...
06 February 2019
The ‘last mile’ has become an increasingly competitive place, as the food industry and disruptors continue to create solutions that make online shopping even more convenient. We know that the convenience and ease of online shopping is extremely appealing to shoppers. We’ve identified several examples of last mile solutions that help online shoppers embrace this convenience. Increase in un...
31 January 2019
Russia’s top two retailers, X5 and Magnit, have added small in-store concessions of Post Bank in several stores as part of pilot projects being run by them both. These are in partnership with Russia Post, the parent of the banking service. Capitalising on the traffic generated by post offices and banking services will help both in their attempts to halt their declining or marginally growing like-...
31 January 2019
We look at how Carrefour is investing in its organic ranges and offer in France and Poland as it rolls out its Act for Food initiative. France: co-creates organic crowdfunding project Carrefour France has joined with other food companies to launch ‘MiiMOSA Transition’, a crowdfunding project that will support farmers as they switch to organic production methods. Food group Herta and coopera...
29 January 2019
Magnit and X5 have been investing in a range of supply chain initiatives to boost cost efficiencies. This is crucial to both retailers as they look to protect their profit margins, so they can sustain their 1,000-plus annual store opening strategies. From consolidated delivery to various transport modes, we look at how Russia’s top two retailers are looking to benefit. Magnit and X5 opt for co...
24 January 2019
Dixy, Bristol and Red & White have decided to merge their retail networks. The combined business is expected to generate revenue of over RUB650bn (US$9.8bn) and operate over 13,000 stores at the end of 2019. The owners of Dixy and Bristol, Igor Kesaev and Sergey Katsiev, will take a 51% share in equity, with Red & White owner Sergey Studennikov holding the remaining 49% stake. Merger places pr...
23 January 2019
France-based Carrefour said total sales, at constant exchange rates and including VAT, fell by 0.8% (excluding various accounting changes) in the fourth quarter to €23.0bn. A better than expected result in France, where like-for-likes fell by only 0.1%, was aided by its performance in Latin America, but hindered by continued weakness in Europe, excluding France, and Asia. France: hypermarkets’...
23 January 2019
Ahold Delhaize has released its Q4 results, reporting that net sales increased by 3.0% at constant exchange rates to €16.6bn. Meanwhile net sales for the full year increased by 2.5% at constant exchange rates to €62.8bn. USA Q4 net sales: +2.6% to €9.8bn The retailer’s business in the USA, which accounts for around 60% of sales, saw Q4 net sales increase by 2.6% at constant exchange rates t...