Baltic States – CIS, EU – Baltic States, Financial Services, Markets and Companies, Retail

In January–September, the S Group’s grocery sales increased by 4.0% year-on-year, climbing to EUR 4,258.0 million. Consumer goods sales increased by 11.3%, totalling EUR 811.9 million.

Retail sales of the regional cooperative enterprises totalled EUR 6,622.2 million, up 5.8%.

“Sales developed favourably in the summer and early autumn also in business areas which are sensitive to economic fluctuations, such as the Tourism and Hospitality Business. The good summer also had a positive impact on the Grocery Trade which developed better than the industry average,” saif BC Kuisma Niemelä, SOK’s Chief Executive Officer.

Sales by business area

The S Group’s Supermarket sales increased by 5.7% in January–September. This figure includes the grocery and consumer goods sales of Prisma, S-Market, Sale, Alepa and Kodin Terra stores as well as the grocery and consumer goods sales at other Supermarket Trade units.

Service Station Stores and Fuel Trade sales increased by 13.3%. Retail sales in the Department Stores and Speciality Stores decreased by 0.7%.

In Tourism and Hospitality Business, sales increased by 2.3%. Automotive Trade and Accessories sales increased by 1.0%, and Agricultural Trade sales decreased by 5.0% on the previous year.

“Sales in the ABC service station stores were brisk. The warm summer increased travel, and volumes grew in July–September in the Supermarket Trade in particular. Restaurant sales were boosted by the discounted VAT, which was transferred directly in the prices in full. The Group’s consumer goods sales increased particularly favourably in the Prisma and Kodin Terra stores,” says CEO Niemelä.

Neighbouring countries

Retail sales in Finland’s neighbouring countries totalled EUR 180.8 million in January–September, up 29.9% on the corresponding period in the previous year. Grocery sales in Finland’s neighbouring countries totalled EUR 128.7 million, an increase of 37.1%. This year, SOK opened two new Prisma stores in St. Petersburg as well as one store in Narva, Estonia. At the end of the year, Prisma stores will also open in Tartu, Estonia, and Kaunas, Lithuania. In 2011, a third Prisma will open in Riga. In the summer of 2011, a seventh Prisma will open in St. Petersburg and an eight in the same autumn.

“Economic growth in the St. Petersburg area has had a positive impact on the hotel business as well as on Supermarket Trade. The increased travel within Russia in particular shows in the hotel business. In the Baltic countries, economic growth has slowly begun. In Tallinn, the recession decreased hotel rates, and although customer volumes at the Sokos Hotel Viru increased, the sales have remained at last year’s level. Sales in all Prisma stores in Tallinn, with the exception of the Kristiine Prisma currently under renovation, are on the increase,” says CEO Niemelä.

Co-op membership

The S Group’s cooperative enterprises gained 73,275 new co-op members between January and September. At the end of September, the S Group had 1,908,702 co-op members.

In January–September, S Group’s Bonus sales increased by 4% year-on-year, climbing to EUR 6,162.6 million. Co-op members were paid EUR 238.5 million in Bonuses, an increase of 4%. The payment method-related benefit received from using the S-Etukortti card amounted to EUR 3.1 million, showing an increase of 13%.

Outlets

At the end of September, the S Group had 1,637 outlets. Between January and September, 39 new outlets were opened.

S Group’s retail sales by business area, 1 January–30 September 2010 (VAT 0%)
(* including retail sales in the neighbouring countries)

 
SOK Corporation (SOK + subsidiaries) 

SOK Corporation’s revenue in January–September totalled EUR 6,756.1 million, up 5.9% on the same period last year. 

Revenue generated by the operating companies totalled EUR 1,166.1 million, representing a decrease of 0.7%. The aggregate revenue of the sourcing function (Inex Partners Oy, Meira Nova Oy, North European Oil Trade Oy) amounted to EUR 4,200.1 million, an increase of 19.0%.

The Tourism and Hospitality Business generated revenue of EUR 191.4 million in January–September, showing an increase of 2.3%. The Automotive Trade generated revenue of EUR 159.8 million in January–September, showing a decrease of 7.5%.

Total revenue for the Agricultural Trade during the first nine months of the year was EUR 662.8 million, showing a decrease of 5.1% compared to the same period a year earlier.

Revenue of SOK Corporation’s Supermarket Trade was EUR 152.1 million in January–September, an increase of 30.3% compared to the corresponding period in 2009.

The S-Bank

Between January and September, the S-Bank issued 213,000 S-Etukortti Visa cards, or, on average, 24,000 cards per month. At the end of September, 589,000 S-Bank customers had a Visa card. The number of Visa cards issued increased by 57% during the first half of the year.

At the end of September, S-Bank had more than EUR 2.3 billion in deposits from private customers. Deposits from private customers increased by EUR 70 million in January–September.

The S-Bank obtained 107,000 new customers during the first half of the year. By the end of September, 902,000 customers were using S-Bank’s online services. 

At the end of September, the S-Bank had 2,281,000 customers.