Norway-based NorgesGruppen has announced its H1 2019 results, posting a 2.5% increase in sales to €4.37bn (US$4.83bn). Operating profit was €182m (US$201m) for the period, compared with €160m (US$177m) in H1 2018.
The retailer said the sales increase reflects the “good customer growth in [its] grocery chains”.
CEO Runar Hollevik commented, “We get good results from the investments that have been made for more efficient operations, and profitability is strengthened while at the same time providing customers with cheaper and better shopping experiences”.
…driven by MENY
Performance was driven by NorgesGruppen’s supermarket format MENY, which has 3.2% comparable growth. Kiwi, the discount format, continued to develop well in the market with new store openings. SPAR also saw an increase in its store network, while Joker saw a small decline.
During H1 2019, NorgesGruppen took several steps to create a sustainable and climate-neutral business. It reduced 450 tonnes of plastic packaging and are on track to reach its target of reducing 25% of food waste by 2020. The retailer has also established a green framework for bond loans for investments in climate-friendly distribution, environmental construction and renewable energy.
Outlook: to continue delivering shopper expectations
NorgesGruppen will continue to develop its store network and provide shoppers with a more seamless shopping experience. This will see the retailer work with efficient operations and logistics solutions with ASKO. It hopes to “be the player that delivers on the expectations of customers” by responding to consumer trends.