REGION: Mercator group sees revenue and profit growth in 2016 | Progresiv

Slovenia-based retailer Mercator Group has reported optimistic projections for 2016, forecasting revenue of 2.6 billion euros and a profit of 55.3 million euros – up on the estimated 50 million euros for 2015.

Revenue growth is expected across all markets, except for Croatia, with the highlights being Slovenia (representing 56.2 per cent of the total) and Serbia (35.7 per cent). The remaining revenue will be achieved in Montenegro (4.8 per cent) and Croatia (2.3 per cent).

In Slovenia, Serbia and Montenegro, sales growth will primarily come from the opening of new sales units, while in Bosnia and Herzegovina, an increase in rental income is expected.

Mercator Group will allocate 34 million euros for investment, mostly for refurbishment of existing hypermarkets and supermarkets, and primarily in Slovenia and Serbia. Investments in Slovenia will reach 31.5 million euros (58.2 per cent of the total), while for Serbia, the company will earmark 14.7 million euros (27.2 per cent).

The retailer will also continue to pursue its current real estate management strategy. Three new shopping malls will be opened in Slovenia in late 2016, as well as several market stores in Serbia throughout the year. Also planned is the building of a modern logistics and distribution centre in Ljubljana (Slovenia).

Since June 2014, Mercator Group is majority owned by Croatian food-to-retail consortium Agrokor. (www.esmmagazine.com)