The population of Russia is switching to a model of lean consumption against the backdrop of a reduction in real incomes, said the largest retailer in the country in terms of revenue, X5 Retail Group.
In Q2, the company’s revenue growth slowed down compared to Q1, while LFL sales growth was driven mainly by an increase in average ticket.
Food inflation in the II quarter amounted to 19.5% (13.5% in the I quarter). At the same time, the growth rate of food prices slowed down throughout the quarter (to 17.8% in June), X5 said in a statement. Deflationary factors were the strengthening of the ruble and the growth of supply in certain categories (fruits and vegetables, eggs, sugar).
On July 18, the company disclosed operating results for the second quarter. Its revenue grew by 18.6% to 647.3 billion rubles. The average bill increased by 10.8% (up to 465.1 rubles). In April, the ticket growth was 9.3%, in May – 12%, in June – 11%. The number of buyers for the quarter increased by 7.3%.
Like-for-like sales (LfL) of Х5 in the II quarter increased by 11.7%, mainly due to an increase in the average ticket – by 11%. At the same time, buying traffic increased by 0.6%.
In the first quarter of 2022, X5’s revenue grew by 19%, the average check increased by 7.4% (to 484.2 rubles), traffic by 10.7%. The retailer’s LfL revenue grew by 11.7%, while the contribution of changes in the average check and traffic was more even (+7.8% and +3.7%, respectively).
At the end of June, the company managed 19,779 stores, including 18,558 Pyaterochka convenience stores.