REGION: Mercator addresses profitability in H1 | Progresiv
Slovenian market leader Mercator, which is now operated by Croatian conglomerate Agrokor, has revealed its results for the first half of 2015, reporting a 1% drop in net revenue to 1.3 billion euros, alongside a small net profit of 15.3 million euros versus a lost in the same period last year of 13.7 million euros. 
In the first half, Mercator has prioritised investment in the refurbishment of its stores, where it invested two and a half times more than in the same period last year, with the majority of investment in Slovenian stores. This included ‘twelve neighbourhood stores, five supermarkets, two hypermarkets and one convenience store’. This investment and a focus on cost optimisation is set to continue in the second half of the year. Elsewhere, the retailer is maximising its Pika loyalty programme and range of private label products.
Mercator has also invested in its wholesale operations by completing the takeover of wholesaler Era Good at the end of March.
As Mercator looks to prioritise its grocery retailing business, it has divested some of its non-core operations including bakery and coffee operations. (www.retailanalysis.igd.com)
