Jerónimo Martins spotlights deflation in Q3 results
Pace of food deflation quickens during third quarter
In Poland total sales rose by 9.0% in local currency terms – 10.9% in €’s – to €2.2 billion, while they fell in Portugal by 0.3% at Pingo Doce and 1.9% at Recheio. The retailer noted the quickening pace of food deflation in its markets, with deflation falling to -1.9% in Poland in Q3, from -0.5% in Q2, ‘partly driven by the Russia’s embargo on some Polish exports’, while in Portugal it fell to -2.8% in Q3, from -1.9% in Q2. Deflationary pressures limited like-for-like (LFL) growth in both markets, with LFL sales falling by 1.3% in Poland and 2.0% in Portugal.
Markets becoming more promotional too
In Poland Jerónimo Martins said that ‘the competitive landscape remained promotional and proximity driven’, while in Portugal it said that ‘promotional activities remained strong’. The retailer spotlighted how, specifically in its home market, ‘low levels of consumers’ confidence’ was accentuating the issues and keeping competitive pressure high.
Source: igd.com
