If the growth continues at the same rate in the second half, the revenue should go beyond RON10 billion, a mark only three companies in Romania’s economy (Automobile Dacia and two entities of the OMV Petrom group) overshot last year.
The significant growth in sales is because of the food VAT cut from 24% to 9% as of June 1, 2015, which drove consumer spending up. Once the base effect of the VAT cut goes away, growth may slow down in the second half.
The second half, however, is the best time of the year for retail companies, because of the winter holidays. December may account for as much as over 10% of a year’s sales.
Kaufland’s growth in sales is in line with the consumer spending increase, about 17% in the first half. Kaufland saw the highest growth in revenue of all the largest companies in Romania in the first half, as the energy companies posted decline and Automobile Dacia’s revenue only went up 10%, ZF has found.
Kaufland officials did not return ZF’s calls for comment on their second half growth estimates or the performance of the first half by the time the story was ready for posting. The retailer’s chief executive officer Marco Hossl has previously said he expects the growth to be the same as last year, 15% given the rise in consumer spending and the opening of five or six new stores.
(English version by Loredana Fratila-Cristescu)