French retailer Leclerc has reported sales growth of 7% excluding fuel for 2012, confirming the success of its EDLP strategy.
Low prices main driver behind six years of constant share gains
Sales for 2012 reached €43.7bn, up 7.5% including fuel. On an ex-fuel basis sales were up 7% to €34.9bn. In France, where the retailer has the majority of its operations, sales were also up 7.5% to €40.7bn inc. fuel and 7% to €32.3bn ex-fuel. The group's low price position is behind the strong performance, with local store ownership also important. Management claims that it has gained 0.5% of market share each year for the past six years, with sales increasing by over 50% over the past ten years.
Consumption to remain stagnant in 2013
Looking ahead, the trading environment in France looks set to remain challenging, with household buying power likely to decline by 1% in 2013 according to the retailer. However, Leclerc remains confident it can grow sales by 4 - 6% over the course of the year.
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