Norway-based NorgesGruppen has released its 2018 results. The retailer reported that operating revenue increased by 2.1% to NOK 87.8bn (€9.0bn), while profit before tax increased by 20% to NOK 2.4bn (€247m). Operating margin remained stable at 3.6%.
Growth driven by KIWI
Performance continued to be driven by the KIWI discount format, with existing store revenue increasing by 4.1%.
2018 investments of NOK 3.6bn (€370.5m)
During the year, NorgesGruppen invested NOK 3.6bn (€370.5m) in stores, operations, technology, energy and people. Future investments are expected to focus on efficiency and customer-focus.
CEO Runar Hollevik added, ‘In 2018, our competitors have established more stores than us, while we have concentrated on improving and developing existing stores. The pace of establishment will increase somewhat in the future with stores that are adapted to their customer base locally’.
MENY.no online grocery turnover: NOK 250m (€25.7m)
NorgesGruppen’s MENY chain achieved online grocery sales of NOK 250m (€25.7m), while estimated turnover for 2019 is NOK 420m (€43.2m).
Commenting on performance, Hollevik said, ‘Even though the turnover development is good, we must acknowledge that it is difficult to get this profitable, because most people will have the goods [delivered] completely home'.
Other highlights: plastic, waste and meals for one
• KIWI, SPAR, MENY and Joker reduced plastic packaging in produce by 256 tons in 2018, having set a longer term goal of reducing plastic by 20% by 2025
• Store food waste has been reduced by 21% since 2015, driven by an improvement in refrigeration at the ASKO Central Warehouse, as well as re-pricing food that is approaching the end of its shelf-life. KIWI has also reduced food waste by over 30% in the last two years
• KIWI’s 'Cheap Dinner for One' concept, which includes fresh meat, fish and non-meat proteins suitable for smaller households
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