Finland's largest retailer, S Group has released a healthy set of results for 2012, seeing year-on-year sales grow by 5%, reaching €12bn.
Finnish consumers more price conscious
Grocery retail sales grew positively, increasing 7.4% to €6.7bn, which includes sales across its Prisma, S-Market, Sale and Alepa banners. CEO of SOK, Kuisma Niemelä commented, "Our grocery sales developed according to our expectations, despite the uncertain economic situation." He went on to explain that S Group is seeing increasing demand for affordable products, stating "Responses to discounted products are stronger and these products are selling in larger volumes than before. Demand for private labels is also on the increase."
Strong growth outside Finland
Grocery sales outside of S Group's domestic market grew an impressive 35.4%, totalling €358m in 2012. During the course of the year, SOK opened a logistics centre and 5 new Prisma stores in St. Petersburg, Russia; 1 Prisma store in Tartu, Estonia; 2 in Riga, Latvia; and 1 in Kaunas, Lithuania. The Group's total number of outlets increased by 28, and it now operates a total of 34 stores outside of its domestic market.
Membership tops 2 million
S Group also increased the number of co-op members in 2012, adding over 61,000 new members taking the total to just over 2m. The payout to its members increased by 5% on last year, rewarding them with a payout totalling €378.5m based on their
purchases using the S-Etukortti bonus card.