Finnish S Group has released performance figures for January-March, revealing sales of €2.6bn.
S Group revealed that sales were flat year-on-year, level with Q1 2012 results. Growth in grocery sales compensated for weaker revenues in S Group's consumer goods divisions. Sales of consumer goods were down 4.6% whereas grocery sales rose 5% to €1.6bn. However this growth was driven by price and not volume increases, as economic uncertainty continues in Finland.
Finnish shoppers feeling the pinch
Tax increases and higher production costs is driving up the cost of food in Finland, and shoppers are responding by finding cheaper alternatives. S Group saw the impact of this in private label sales growth of 25% in the quarter. Shoppers are also increasingly reaping the benefits of its co-operative membership, with member sales up 8% and over 17,000 new members joining S Group.
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