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Russian O`KEY Group S.A., owner of the Discount Retail Chain DA! has announced its unaudited operating results for the second quarter and the first six months of 2020. Q2 2020 operating highlights DA! discounters net retail revenue jumped by 50.8% YoY to US $95 mln, realising $ 457 per-square-meter, in Q2 2020, driven primarily by a 34.7% LFL net retail revenue growth, and supported by the expanded selling space. H1 2020 operating highlights DA! discounters net retail revenue grew by 47.0% YoY to US $172 mln in H1 2020, as a result of a 31.3% LFL net retail revenue growth and expanded selling space. Operating review Group Net Retail Revenue in Q2 and H1 2020 DA! discounters As stores with a well-balanced, high-quality assortment at competitive prices, DA! discounters were the main growth drivers for the Group in Q2 2020. During the pandemic months, the customers greatly appreciated both the shopping experience and selection of products on offer. The ongoing efforts to improve customer value proposition and the quality of its products and services, while aiming to continue offering competitive prices for essential goods, resulted in higher customer loyalty and impressive top-line growth. Compared to the sustainable average growth of over 30%, the DA! stores showed a significant acceleration in revenue growth during Q2 2020. DA! discounters net retail revenue soared by 50.8% YoY to US $95mln, realising $ 457 per-square-meter, driven mainly by LFL net retail revenue growth and supported by expanded selling space. The DA! stores delivered a 34.7% LFL net retail revenue increase during Q2 2020. The growth is attributable to a 47.2% increase in the average LFL ticket, while LFL traffic was down by 8.5% in Q2 2020. Customer traffic fell year-on-year in April and May as a result of less frequent store visits due to the COVID-19 restrictions. However, this accelerated to a growth of 11.5% YoY in June, as the self-isolation was eased. The average ticket growth, conversely, peaked in April-May due for the most part to the higher number of items per basket. Thanks to the balanced selection on offer, the brand showed an impressive growth in sales across all product categories without any substantial changes in the sales mix during Q2 2020. The share of private labels totalled 50% of all DA! sales in Q2 2020. O'KEY Group opened three and closed three DA! Discounters in Q2 2020, and operates 100 discounters with 69,313 sq. m. of selling space as of 30 June 2020. OVERVIEW O'KEY Group S.A. is one of the leading grocery retailers in Russia, operating hypermarkets under the O'KEY brand and discounters under the DA! brand. As of June 30, 2020, the Group operates 177 stores across Russia (77 hypermarkets and 100 discounters) with a total selling area of 589,894 square meters. The company opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. O'KEY is the first Russian food retailer to launch e-commerce operations in St. Petersburg and Moscow, offering a full range of hypermarket products for home delivery. The Group has six e-commerce pick-up points in Moscow and six e-commerce pick-up points in St. Petersburg. In 2015, the Group launched the first discount chain in Russia under the DA! brand. The Group operates four distribution centres throughout the Russian Federation - two in Moscow and two in St. Petersburg. The company employs 20,000+ people. In 2019, Group's revenue totalled US $ 2.24 billion, while EBITDA reached US $ 190 million and net income climbed to US $ 10.15 million. The O'KEY shareholder structure is as follows: NISEMAX Co Ltd - 44.79%, GSU Ltd - 29.52%, free float - 25.69%. Click here for more: https://okeygroup.lu/upload/iblock/cef/Q2%202020%20ENG_final.pdf

Discount Retail Chain DIA Group, that operates in Spain, Portugal, Brazil and Argentina (owned by Russian LetterOne), published its financial results for the second quarter and first half of 2020. Sales and EBITDA figures evoluted positive, thanks to the effective response to the COVID-19 crisis and the initial results of the transformation initiatives launched that have continued after the confinement. Financial position strengthened in the first half of 2020, with an improvement in working capital, the generation of positive cash and a reduction in net debt. Country-level leadership empowered and complying with the strategic roadmap during the first half of 2020 - accelerated deployment of the online service in all countries, launch of new Private Label branded products and improvement of the assortment. MAIN FINANCIAL DATA 2Q20 (all figures are in US DOLLAR): Net Sales: $ 2,141 million (2Q19: $ 2,014 million), an increase of 6.3% thanks to the positive effect of transformation initiatives and consumer behavior in relation to confinement due to COVID-19, despite the reduction of the network stores and the adverse monetary effects caused by the Brazilian and Argentine currencies. Like-for-Like Sales : 14.9% increase, with all markets positive for the first time since Q4 2016, driven by an increase in the average size of the shopping basket that offset the decrease of the number of tickets. Spain: +20% (LFL) Portugal: +9.2% (LFL) Brasil: +14.7% (LFL) Argentina: +4.0% (LFL) Gross Profit, Margin: $474 million, 22% (2Q19: $357 million, 17.7%) which represents an increase of 4.4% as a percentage of net sales, due to increased sales and the first positive results of the operational excellence program launched in H2 2019. Personnel costs: $225 million, 10.5%, which represents a slight increase since the impact of the personnel efficiency measures implemented in 2019 have been offset by the payment of the bonus and the personnel needs related to the COVID-19 situation. Operating Expenses: decrease of 1.4% as a percentage of net sales, thanks to the adoption of cost reduction measures and the decrease in investment in advertising during the confinement caused by COVID-19. Adjusted EBITDA: $71 million, 3.3% (2Q19: -$79 million, -3.9%), driven by the increase in sales volume and the improvement in the gross margin brought about by a firm discipline of costs. Net Income: -$53 million, -2.4% (2Q19: -$314 million, -15.6%) with an improvement in interest expenses and the negative monetary effect of $19 million, 0.9%. Stable available liquidity at $512 million (1Q20: $500 million) with an improvement in the debt maturity profile after the refinancing agreement reached in 2019. Net Financial Debt: drops to $1,475 million. MAIN FINANCIAL DATA 1H 2020 UPDATE OF THE 1H 2020 TRANSFORMATION ROADMAP Optimization of the commercial assortment: Implementation in around 500 stores in Spain during the H1 2020, prioritizing the supply of fresh fruits and vegetables. Private Label Brand: Development and introduction of new products in Spain and Brazil within the framework of a new proposal that combines quality, quality / price ratio and more attractive packaging. Online sales and express delivery: In operation in all four countries after its introduction has been accelerated to meet customer demand during the COVID-19 lockdown period and beyond, and as a priority to meet customer purchasing trends long-term. In close cooperation with Amazon. Franchises: Introduction of an improved franchise model based on incentives and focused on the customer, implemented in 470 stores in Spain, and the launch of an adapted offer in other markets. Operations: Focused on cost efficiency and the reduction of complexity in the relationship with suppliers, stocks, logistics and management of purchases and supplies; start of new logistics plans and renegotiation of rentals in all markets. Store location optimisation: With 409 stores less than 2019. Having a total of 6.400 stores. Regarding the results, the President of DIA, Stephan DuCharme, has stated: "The financial results for the second quarter demonstrate the positive impact of the response adopted to the situation of COVID-19 and the transformation of the business that we have been executing. Clients are responding to our attractive proximity offer and our new online sales capabilities , and the positive figures for comparable sales (like-for-like) in June and July after the confinement are a good indicator of this progress. We have controlled costs in light of increasing demands across the sector for protection and staffing measures, thanks to efficiency decisions made in 2019, along with key financial indicators - such as improving working capital and positive cash flows - moving in the right direction. Looking ahead, during the second half of the year, we will continue to deploy transformation initiatives within the framework of the adopted roadmap, focusing on the fundamental pillars of our franchise model and improved commercial value proposition, which are supported by the optimization of efficiency. operational. "

Discount Retail Chain Dollar General (DG) announced plans to build three additional facilities to support its expanded rollout of fresh and frozen goods to stores, according to a DG news release. Each DG Fresh facility will create 65 new jobs and support around 1,500 stores. Two 160,000-square-foot (49,000-square-meters) DG Fresh facilities, one in Bowling Green, Kentucky and the other in Ardmore, Oklahoma, will begin construction this fall. The Oklahoma location is expected be completed by spring 2021, whereas the facility in Kentucky is estimated to be done by summer of next year. A 200,000-square-foot (61,000-square-meters) distribution facility will begin operations this fall. Dollar General also announced it will open a 630,000-square-foot (200,000-square-meters) traditional warehouse in Walton, Kentucky in January. Dollar General currently operates six DG Fresh facilities distributing fresh and frozen items to more than 9,000 stores. Feels the increased competition of the German Discount Retail Chains Aldi and Lidl in the USA. The pandemic isn’t slowing Dollar General’s progress on its DG Fresh initiative, which the company has said will serve 12,000 stores by the end of this year. In addition to the three announced facilities, Dollar General recently opened a $26 million warehouse in Montgomery, Alabama serving 1,500 stores in the region. DG Fresh aims to save on distribution costs and boost Dollar General’s assortment of fresh and frozen products at most of its nearly 17,000 stores. To further increase sales volumes, the company is installing additional coolers, including high-capacity coolers that hold 45% more product, in its stores. Last year, it added 40,000 cooler doors across its stores, and this year it will add 50,000. Despite a reputation for selling mostly cheap, shelf-stable goods, Dollar General wants to become the go-to grocer in many communities where it operates. Fresh produce, currently available at around 750 stores, will be in around 1,000 locations by the end of this year. The assortment includes roughly 80% of the categories found in grocery produce departments along with the top 20 selling items. During the company’s May earnings call, CEO Todd Vasos said he expects DG Fresh to begin benefiting operating margins by the end of this year. Self-distribution has also helped boost in-stock levels during the pandemic, he said. Click here for more: https://www.grocerydive.com/news/dollar-general-continues-fresh-distribution-push/583039/

Journalists are rarely allowed to look behind the scenes at Aldi. The German broadcaster Deutsche Welle (DW) was allowed to shoot in a logistics center of Aldi Nord and shows how the discounter chain works. The article tries to explain what the success criteria behind the discount chain is. Pallets and slashed cardboard boxes, no advertising and the claim to always have the cheapest price: This was the principle Aldi invented in 1946 as the discount store's recipe for success. A lot has happened since then, and the global discount chain now has around 11,000 branches worldwide. Despite the low prices, Aldi Nord makes record sales per square meter of retail space compared to other discounters. However, due to the low prices, profit margins are only slightly above the purchase price. How did Aldi achieve this unique success? A video from the radio station "Deutsche Welle" now gives a rare glimpse behind the scenes at Aldi Nord. He gives answers to the question about the success secret of the discount chain. The camera team was allowed to be there early in the morning when the goods were loaded in one of the almost 80 Aldi Nord regional logistics center. It is very rare for journalists to receive filming permits and interview appointments with Aldi managers, because the Aldi Group has always shielded itself as best it can from the public. One of Aldi's secrets to success is the distribution via the logistics centers. Stores are supplied from there because the shops themselves hardly have any storage space. That saves costs. At 6 a.m. in the morning, the branch employees then have to fill 30 percent of the shelves fresh in a hurry, the DW report shows. Since the customers come from 7 a.m., the placement process has to go so quickly that the branch manager says in the article: “You automatically do sport here.” The employees at Aldi are known for their speed, which is also considered the recipe for success Discounters. For this they are paid above the average tariff, say some employees to journalists at DW. Click here for more: https://www.dw.com/de/der-aldi-code-erfolgsgeheimnis-des-globalen-discounters/av-54392976

Discount Retail Chain Lidl Lithuania (Lietuva) was among the most successful retailers in 2019. They not only increased market share, but also its profitability. Last year was one of the most flourishing year for retail chains in Lithuania. Last year, Lidl Lithuania and Norfa Retail managed to grow faster than the overall retail market. Looking at the net profit, the most successful years are presented by Rimi, Norfos mažmena and Lidl Lietuva. If Lidl Lietuva maintains its pace of development, it can also take the third position in Lithuania. The Lithuanian newspaper Verslo žinios made an overview of the results of the financial reports submitted, the taxes retailers paid to the Lithuanian State and the remuneration paid to their employees. Click here for more: https://www.vz.lt/prekyba/2020/08/02/prekybos-tinklu-apzvalga-lidl-pelningumo-rodikliu-vejasi-maxima#ixzz6UADevida

Discount Retail Chains are growing rapidly, taking significant market shares also in Colombia. As well in number of stores as in sales volume per store. Discount Retail Chains USD sales / store: D1: increased from $600K (in 2015) to $1.03M (in 2019), a +58% ARA: increased from $730K (2015) to $1.38M (in 2019), a +89% Justo Y Bueno: increased from $270K (in 2015) to $972K (in 2019), a +260% Average: increased from from $729K (in 2015) to $1.1M (in 2019), a +48% Supermarket chain USD sales / store: Exito (marketleader): decreased from $6.6M (in 2015) to $5.9M (in 2019), a -11% Showing discount retail is a big success in Colombia and expands further into other American countries.

Discount Retail Owner Mr. Michell Olmi, CEO of the #Reve Group (located in Panama), has been the brain behind the best retail businesses in the world in the last decade, comparable to the giants as #Amazon, #Alibaba, #Ikea and #Wallmart. He first told about the meaning of what he calls "democratization of consumption." "It is key that everyone, all economic strata have access to a much broader, more inclusive basket that previously the consumer could not buy." MICHELL OLMI In the sector, the discount business models that Olmi has created are admired, but some see it as a threat to department and neighborhood stores. Currently, the market for hard discount stores in #Colombia increases by almost $ 2.5 million a year. If today Olmi and Reve owned Discount Retail Chains D1 and Justo y Bueno, they would have 60% of the Colombian retail market. Following this line it is expected to reach US $ 6.5 billion sales in 2023. According to Olmi's vision Discount Retail Chains are successful when: - looking for countries where there is a significant difference between the cost of a basic goods basket and the minimum wage. - trying to learn with trial and error. Perfection is not part of the discount philosophy. Not trying to make everything perfect, but minimize risks - focusing on meeting goals, not seeing where it is taking market share from. Discount Retail Chains do not aim at at department stores, independent supermarkets, or neighborhood stores. Its strategy is global, trying to keep growing generating more volume to have better production costs and to be closer to the consumer. Click on this image for more:

Discount Retail Chains fight with the big supermarket chains offering customers quality products at low prices. Discounters' success has been seen in the growth that these companies had during 2019, which exceeded 30%, showing a great challenge since they have large debts and negative assets. Discount Retail Chain D1, belonging to Koba Colombia, which was ranked 24 in the general ranking of the Superintendency of Companies and consolidated as the largest discounter in the country, achieved a turnover of US $ 1.3 billion, which meant a growth of 30.74 % vs. FY 2018 and a loss of US $ 10,000,000. Fernando González, President of Koba Colombia, highlighted that "this growth was based on a strong development of the company's perimeter, reaching 1,300 stores and with more than 390 openings during 2019". The debt-to-assets ratio is 105%, which is normal at discounters and means D1 owes more than they have and that their assets are backed almost all by third parties mainly goods suppliers. This was followed by Jerónimo Martins Colombia 's discounter is ARA, with 616 stores, had operating income of US $ 0.8 billion, which represented a growth of 40.04% compared to FY2018 and a loss of US $ 120 mio. ARA has equity of US $ 17 million and although the debt percentage is at 98%. REVE Group owner of Mercadería SAS, the Colombian company behind Discounter Justo & Bueno, is the third largest discounter in the country. In 2019, it managed to increase its income by 56.81%, reaching US $ 0.7 billion, a loss of US $ 70 mio, with the percentage of debt over assets of 140%. A good year for the retail sector According to the December version of the Monthly Manufacturing Survey, a study presented by Dane, real sales had a significant rebound last year, growing 7.1%. In a year in which there was a steady increase in unemployment, it is noteworthy that retail trade ended 2019 with 2.9% more employees. Click here for more: https://www.larepublica.co/especiales/las-100-mas-grandes/los-discounters-incrementan-su-facturacion-pero-con-aumentos-de-sus-deudas-3039441

Discount Retail Chain D1 owning company Koba Colombia SAS achieved revenues of about US $1.4 Billion (5 trillion pesos) in 2019 and became the 19th largest company, and the third largest food retailer in Colombia. In the ‘ranking’ of Supersociedades, the D1 stores outperformed Cencosud (Jumbo), which sold US $1 Billion (3.8 trillion pesos), one of its main competitors and largest retailer in the country. Regarding the growth of D1, it is one of the strongest businesses in Colombia today. Opening one new store every day. D1's DNA has been constantly good, also during the COVID-19 epidemic, for its employees. Click here for more: https://www.pulzo.com/economia/d1-ganancias-tiendas-2019-PP944178

Discount Textile Retail Chain Primark, an international clothing brand that offers "amazing fashion at amazing prices" opens its first store in Poland in the Galeria Młociny shopping center in Warsaw on Thursday, August 20th 2020. The Warsaw store, which has created 250 jobs, occupies 3,660 sq m. commercial space on two floors. The store will offer collections in line with the latest trends in women's, men's and children's fashion, including footwear, accessories, as well as underwear and home furnishings. Customers will also be able to buy Primark products made of sustainably sourced materials, including organic and recycled materials. The design and layout of the showroom were based on the latest, modern concept of Primark stores. There are 30 cash registers in the store and, among others, access to free Wi-Fi. With the safety of employees and customers in mind, the store has numerous protective measures. Poland is an important market for the Primark chain and is another milestone in our expansion in Central and Eastern Europe - he emphasizes. Primark is an international apparel brand that offers the very latest in fashion, cosmetics and home furnishings at "Amazing Fashion at Amazing Prices". Established in Dublin in 1969, the company currently operates over 380 stores and nearly 1.5 million sq m. retail space in 12 countries: Ireland, Great Britain, Spain, Portugal, Germany, the Netherlands, Belgium, Austria, France, the United States, Italy and Slovenia. Primark employs over 70,000 people and opened 15 stores in the 2018/19 financial year, creating more than 4,500 jobs and receiving over 42,000 job applications from these stores. Primark works a bit differently than other retailers. It does not run large TV or outdoor campaigns, and we sell our products only in stationary stores. There is no online store or extensive supply network. Click here for more: https://handelextra.pl/artykuly/239774,znamy-date-debiutu-sieci-primark-w-polsce

Discount Retail Chain Aldi UK is developing its own cashierless Amazon Go rival and is on the hunt for automatic product recognition technologies. Aldi Süd, the subsidiary of the German discounter which trades in the UK, has placed an international call out to tech startups specialising in computer vision and artificial intelligence. At the same time Amazon plans 30 'Amazon Go' convenience stores for the UK as first country in Europe. The German discounter has reached out to potential partners on a its new English-language website, asking entrepreneurs with test-ready solutions to register and introduce their companies and product. It has specifically requested companies who have developed technology which will enable the automatic recognition of products, either through cameras in store, in shopping carts or via users smartphones. Aldi also explicitly mentions shopper apps which can help display additional information like stock levels, allergen and special dietary information in line with the recently introduced and successful Lidl Plus App. While it has not yet been confirmed by the grocer, the request heavily suggests it is developing its own alternative to Amazon’s Go grocery stores. Amazon Go stores will track items shoppers put in their basket automatically and charge their Amazon accounts without them ever having to queue or pay physically. Queuing at the discounter's cashier is one of the major customer irritation points and can be solved this way. It comes days after reports that Aldi could be on the verge of launching an e-commerce arm in the UK, as its logistics operators says it has the systems in place to “seize the opportunity which e-commerce offers”. Armstrong Logistics, Aldi’s long-term logistics partner, has built and launched a dedicated home delivery division which it says will become a “major part of our business in the future”. Click here for more: https://www.chargedretail.co.uk/2020/08/03/aldi-plans-to-launch-amazon-go-style-cashierless-stores-as-it-requests-product-recognition-tech/?mkt_tok=eyJpIjoiWkRnMlpXUXlOak01WXpjMCIsInQiOiJuT0sxTWdWRWYwV213XC9zVW1zYjdLcmxoK0hmSHJPOWFlNkZTY3oxamhJRGpORTZFY2k3cGRaUjZ4ampsbjNIMXorZ0VuSmFwSmQzM0hQbjZTbjE4UkNDbldObUJcL1JBZFlRNWowM1NjZkdRNDFhb1lScXgxTkJSQnJMODNhK2NPIn0%3D

Discount Retail Chain Aldi is introducing the trendy Japanese vending culture at its discount stores, with an Aldi vending machine. While supermarkets like Edeka and Rewe often open their stores until late in the evening, the situation at the discounter Aldi is different. This usually ends much earlier. But Aldi Süd also obviously wants to win over customers who still need some groceries late at night - using a method that was previously unusual for the discounter. The discounter has now set up a 24-hour machine outside its store in Haßloch, as Aldi recently announced via Instagram advertising. The discounter calls the project "ALDImat". Those who can no longer make it to the store in time in the evening or are already hungry in the morning before it even opens, can now use the ALDImat at least in Haßloch. The vending machine is filled with a very limited selection for emergencies. As reported by the “heidelberg24” portal, there are between 25 and 40 Aldi products that you can buy there. Above all, customers should get things for breakfast or the grill party at the machine and at the same prices as in the store. Click here for more: https://www.businessinsider.de/wirtschaft/aldimat-aldi-testet-automaten-an-dem-kunden-24-stunden-einkaufen-koennen/