Netherlands: contrasting quarterly results

Date : 25 April 2016

As Sligro-owned EMTÉ and Coop announce first quarter results that showed a difference in performance and Hoogvliet appoints a new commercial director, we round up news from the market.

Sligro affected by EMTÉ results

Sligro said that at a corporate level sales rose 4.5%, including the benefits felt from recent acquisitions, to €633m in the first quarter, while they rose 1.5% excluding the acquisitions. However, underlying the headline growth was a story of a continued rise in sales at its Foodservice division, where they were up 7.3% including acquisitions and by 2.7% excluding this effect, which offset the performance of its Food Retail arm, EMTÉ.

EMTÉ suffered a 0.8% contraction in total sales, to €204m, while like-for-like sales were down 3%. This suggests EMTÉ has lost share, with market estimates putting growth at 2.9% for grocery retailing in the Netherlands during the first quarter. To turnaround its recent performance, EMTÉ is trialling a new version of its EMTÉ 3.0 format, with early results proving ‘promising’. Sligro has said that it has started to convert further stores and expects to have 15 with the new design by the end of the year.

Expansion underpinning Coop performance

Coop has said that it has continued its good 2015 performance into 2016, with total sales rising by 6%, aided by the opening of eight new stores. The company announced its first quarter performance as it reflected on 2015, when at a group level it said revenues reached €920m, helped by the addition of 13 stores. Sales to consumers reach €1.083 bn in 2015, up from €1.007 bn in 2014. However, when compared to market estimates for the grocery industry more widely, it is clear that Coop is gaining share in the market.

Coop has said it will maintain its pace of expansion in 2016 and will be rolling out its ‘Coop Today’ format, if its initial trial of the design proves successful. Also, Coop will celebrating its 125th anniversary in 2016, with various campaigns, promotions and events organised to commemorate the year.

Hoogvliet appoints new commercial director

Hoogvliet has appointed Henk Kessen as commercial director and to its board, a role he will take up from the start of June following the retirement of Jan Korevaar. Kessen left rival Detailresult Group in March, where he was sales director for two years, and brings with him long standing experience in grocery retailing following a career of nearly 40 years at supermarket chains in Belgium.