New stores driving Dixy growth

Date : 16 May 2013

Dixy has reported total sales at RUR 42.3bn for the first quarter of 2013, and retail revenue growth of 22.7% in ruble terms, for the first four months.

Convenience performing well

With competition stepping up in Russia after strong performances from X5 and in particular Magnit, an encouraging Q1 for Dixy bodes well. Year-on-year sales grew by 21.9% to RUR 42.3bn, with neighbourhood stores performing particularly strongly. Dixy neighbourhood store sales grew by 53% and Victoria neighbourhood store sales increased 80.6% year-on-year. This performance is likely to be due to the opening of 53 Dixy convenience stores, accounting for all bar three of the new store openings in the quarter.

Like-for-like sales up 4.96%

LFL sales across Russia increased by almost 5%, with the strongest growth being seen in the Urals region for the Dixy division and in Central Russia for the Victoria division. Despite the average number of customers only increasing by 0.4%, the average basket spend increased by 6.5%, although this may be in part due to a 1.9% rise in consumer prices in Russia.

First four months' sales up 22.7%

Subseuquently, on 16 May, Dixy reported retail revenue growth of 22.7% in Russian ruble terms (+20.4% in USD).  Stores were closed for two days in the first four months (1 January, and one fewer day in February because of leap year); this affected growth which would otherwise have been +24.4% in ruble terms.  Strong organic expansion for Dixy neighbourhood stores, and re-branding of former Victoria outlets, helped boost this division.  Dixy opened 87 stores and closed 18 during the first four months.