S-Group reported a 1.5% increase in retail sales to €14.5 billion, attributing this growth to strong market activity even amidst consumer caution and economic uncertainty.
S-Group, which encompasses regional cooperatives and the central cooperative SOK, reported a turnover of €14.5 billion in retail sales last year, reflecting a 1.5% increase compared to the previous year. This growth was notable considering the challenging economic environment, where consumer caution was evident, and intense price competition was present. While the overall sales showed resilience, the sales in specialized retail suffered due to diminishing consumer confidence.
The group noted positive outcomes particularly in the grocery sector, with sales up by 2.5%, contributing nearly €11 billion last year. The fast-food and café sectors also saw growth, indicating a shift in consumer behavior towards convenience and quick dining options. However, the overall trend of consumers pulling back on spending in specialized retail outlets points to a broader uncertainty in the economy that could affect future sales performance.
Looking ahead, S-Group's leadership underscored the need to strengthen consumer confidence in the current year marked by economic unease. CEO Hannu Krook highlighted the importance of avoiding VAT increases, arguing that such measures could further deter consumer spending and impede recovery. The call to maintain stable tax policies indicates S-Group's proactive stance in addressing the looming uncertainties that may impact the retail sector in Finland.
