Slovenia-based Mercator has announced first quarter results saying that ‘persistently negative economic trends’ had led to revenue contracting by 2.6% to €658 million.
Economic crisis keeping ‘consumption… conservative’
Mercator highlighted the economic difficulties being faced by shoppers in all the markets it operates in. For its home market, Slovenia, the retailer said that ‘the negative effects of the economic crisis are felt by an increasing number of consumers’, which led to revenue falling by 3%.
In the retailer’s international markets, revenue fell by 2.1%, with Mercator saying that spending had been hit, with shoppers ‘very conservative regarding the purchase of durables’ and also ‘rationalising their consumption of fast-moving consumer goods’. Mercator pinpointed lower sales in Croatia and the exit from Albania and Bulgaria as also limiting growth in its operations outside of its home market.
Strategy to focus on ‘three-dimensional marketing approach’ in future
Confirming what it said in late 2012, Mercator said that it would continue to implement a three pronged strategy in its markets, centring on ‘coordinated management of categories, customer segments, and store formats and services…’
In terms of store formats, Mercator said that in 2013 it would place ‘particular focus on redefining the neighbourhood store concept’, while for category management it would look at adapting its promotions, focusing on its ‘grown in Slovenia label’ and shrinking some categories, amongst other items.