Sonae annual retail sales grow 7.2% driven by e-commerce growth and expansion
Portuguese retail company Sonae has reported its financial results for 2016, revealing retail sales of 5.2 billion euros, up 7.2% on the previous year.
The company said growth was underlined by the constant improvement of the expansion of convenience formats, success of new store concepts, and investment in the omnichannel, as well as the reinforced business portfolio and growing internationalisation of Sonae core brands.
The Sonae SR division, responsible for the company’s non-food retail operations, reported sales of 1.4 million euros, up 11.2% on 2015. The division encompasses the company’s fashion and sports businesses, including childrenswear brand Zippy, Berg Outdoor and low-cost fashion brand Mo, as well as electronics and household goods retailer Worten.
Excluding Worten, sales in the sports and fashion division increased by 31.3%, recording like-for-like sales growth as it benefited from the positive results of its original brand portfolio and the addition of fashion brands Salsa and Losan last year.
The results include Losan’s performance since January 1 2016, but only include Salsa’s numbers from the second quarter onwards.
According to the group’s report, the sports chain Sport Zone performed well, growing sales per sqm by 1.9%. The chain’s ecommerce offering also achieved good results, with turnover growth of 26% in Portugal and 18% in Spain.
Zippy was able to consolidate the performance delivered throughout the last quarters and grew LfL sales by 9% in Portugal and 4% in Spain in 2016.
Finally, Mo continued to readjust its value proposition and has been showing some positive signs, particularly in the fourth quarter, with a high variation of LfL sales.
Sonae is an international company that manages a wide range of businesses in the areas of retail, financial services, technology, shopping centres and telecommunications. With a presence in more than 70 countries, the company reported turnover of more than 5 billion euros in 2015.
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