Slight Growth Rates of Spar in CEE Region

Published: February 24, 2012; 09:48 · (Vindobona)

For the first time, the Austrian supermarket chain´s sales totaled more than € 12.0bn in 2012. Sales growth amounted to 3.8%.

Slight Growth Rates of Spar in CEE Region / Picture: © Spar

Spar Austria Group recorded sales of € 12.0bn in 2011, sales growth reached 3.8%. In Austria, business growth was 4.0%, sales increased thus to € 5.15bn. The industry recorded a market growth of 2.9%. As Spar Austria performed better than the average, CEO Gerhard Drexel is satisfied with the results in the domestic market. A slight increase in Spar´s market share could be achieved, Drexel argues.

In foreign markets of Eastern and Southern Europe, growth in revenues went down substantially. As a result, only small sales growth in real terms was registered. In 2011, the inflation rate in Austria amounted to 3.3%.

“It is very pleasant that we could achieve sales growth in every single country in spite of significant impacts of the economic crisis in Eastern Europe.” CEO Drexel commented. However, Drexel thinks that the development in the CESEE region is favorable, even in Hungary.

There, Spar Austria Group had to report losses. The Hungarian government imposed extraordinary taxes of 2.5% of sales. As a result, the additional burden was € 25m. “It is obvious that cannot be any profit left.” Drexel says. Though, Drexel does not consider to withdraw from Hungary. Investments will be made more carefully in future, Drexel adds. For Spar Austria, Hungary is the second-largest foreign market behind Italy.

In 2011, investments totaled € 450m: 80 branches were modernized and 70 new were established. Drexel emphasizes that the expansion speed will be maintained.

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