Biedronka powers Jerónimo Martins’ FY 2016 | Progresiv
Portugal-based Jerónimo Martins has said net sales rose 6.5%, 9.8% at constant exchange rates, to 14.6 billion euros in 2016. After a slightly slower period of sales growth, the retailer’s Poland-based discount chain Biedronka saw an acceleration in performance, with net sales rising by 6.3%, or 10.8% at constant exchange rates. 
Jerónimo Martins said that its focus on ‘growing like-for-like sales across Biedronka, Pingo Doce and Recheio drove market share increases [and] strengthened their relevance for the consumers.’
Jerónimo Martins said that despite the Polish market remaining ‘promotionally driven’, some of this had been offset by the positive market environment and food inflation of c. 0.7%. At Biedronka specifically, it said that the strategies implemented in 2015 and into 2016had helped underpin its performance, with the acceleration in like-for-like sales to 11.9% in Q4, versus 9.5% for the full year, underlining their positive effect. The retailer said that its move towards a ‘more integrated and… agile approach… [helped it] fit the consumer needs and aspirations’.
Jerónimo Martins said that like-for-like growth was aided by an increase in the average basket, which, in turn, had been helped by ‘the success of the campaign surrounding the launch of the loyalty card’. At Hebe, total sales growth of 22.1% was driven by the opening of 19 new stores.
The stellar performance of Biedronka was supported by ‘solid’ sales at Pingo Doce, where like-for-like sales rose 1.3% in the fourth quarter, a slight improvement on the whole year, where they were up by 1.2%, excluding the deflationary effects of petrol. At Pingo Doce, the continued implementation of its strategic initiatives – based around its four pillars – helped it to win. A focus on promotions, driving the quality and innovative nature of its private label ranges and updating its stores helped it sustain its growth and ‘improve the overall shopping experience’. (www.igd.com)
