Page 131 - RusRPTAug21

Hypermarket revenue was up 3.1% y/y. LfL sales for hypermarkets remained flat y/y in 2Q21 after falling 2.5% in 1Q21, as the 16% drop in the average ticket offset the 19% growth in traffic. The retailer’s monthly sales dynamics for its hypermarkets differed from other retailers, with O’KEY reporting a very strong April (revenue growth of 7.6% y/y for hypermarkets) followed by a deceleration in May (revenue growth of 1.1% y/y for hypermarkets) and an even weaker June (revenue growth of 0.6% y/y for hypermarkets).
Revenue from discounters was up c. 21% y/y in 2Q21, accounting for almost 19% of O’KEY’s consolidated turnover during the quarter. The growth was driven by the 6.8% increase in LfL sales (thanks solely to traffic) and the 19% y/y expansion in selling space (with four store openings last quarter).
X5 Retail Group, Russia’s largest food retailer, released its preliminary consolidated net retail sales and operational results for Q2 and H1 ended 30 June 2021.
Highlights include:
· Total sales increased by 10.6% y/y, driven by a 9.5 ppt contribution
to sales growth from offline sales and a 1.1 ppt contribution from digital businesses in Q2 2021.
· Revenue from digital businesses increased by 105.7% and totalled RUB10.6bn in Q2 2021. The share of digital businesses revenue in total sales reached 2% in Q2.
· Offline net sales at X5’s Pyaterochka and Perekrestok stores increased by 9.9% y/y and 17.4% y/y, respectively, driven by selling space expansion and LFL sales growth.
· LFL offline sales increased by 4.0% in Q2 2021. Starting from April 2021, LFL traffic became the main driver of LFL sales due to a reversal in the previous trend: customers began making more frequent visits to stores with a normalised basket size compared to 2020.
· Average number of total daily orders for X5’s online hypermarket Vprok.ru Perekrestok and express delivery services from Pyaterochka and Perekrestok stores exceeded 77,000 on peak days in April 2021.
· In Q2 2021, the total MAU of X5 digital services was 13.7mn, an increase of 82% y/y.
Detsky Mir revenue growth comes in slightly below 30% in 2Q21, c. 11% EBITDA margin expected.
The sales results match our expectations and suggest upside to consensus FY21 expectations. At the same time, our FY21 profitability forecasts could be difficult for the retailer to achieve. However, we believe that one should offset the other, resulting in a limited impact on
131 RUSSIA Country Report August 2021 www.intellinews.com