During the unfavorable economic situation, Greek consumers voted for Jumbo, this Christmas, by visiting the Group’s stores.
The absolute number of tickets, in Jumbo stores operating in Greece during December, was increased by 5% y-o-y. On the contrary, according to up to date available data, the turnover in the retail sales had declined at the Christmas period due to the economic crisis and other parameters in Greece such as the repeated strikes.
Against the unpleasant messages of the market, Jumbo Group, the largest retail company of toys, baby products, stationary products and other relevant products in Greece, announces that sales during the first half of the current financial year (July 2010 - June 2011) were almost at last year’s level (less than 1% decline). The group at the first half-year period operated 6 new hyper stores which are expected to contribute in the Group’s future growth.
The financial crisis in Greece affected the toy’s market too with many implications. During Christmas period the initial signs of liquidity problems appeared in the market and a competitor located in Northern Greece filed for article 99. This is one implication that it may leads to an increase of Jumbo’s market share since is proven that the company has the best proposition for the consumers as it offers the best possible quality for the price.
The Group’s management had informed to the investment community that its estimate for the annual sales growth was between 0%-2% y-o-y for the current financial year while the gross margin was expected to deteriorate by 6%. As a result the net profits would have reached €60-65m.
The two first quarters of every financial year traditionally are the most significant and indicative ones for the Group’s annual performance. According to the above the Group’s management reiterates its estimate for the net profits as the less than expected decline on the gross margin will counterbalance the marginal decline of the Group’s turnover.
Today, the Group operates 51 stores of which 44 are located in Greece, 3 in Cyprus and 4 in Bulgaria while the Group continues the execution of its investment plan with the opening of six new stores during the next financial year July 2011-June 2012.