Reitan AS reported a solid financial year, with revenues increasing and a stable operating result for its Rema 1000 business, despite uncertainties in its convenience segment.
Reitan AS, a prominent family-owned company in Norway, showcased robust financial performance in its latest annual report, with total revenue rising from 149 billion to 153 billion NOK. The company posted a pre-tax profit of 4.7 billion NOK, indicating a healthy growth trajectory. With significant operations spanning retail, real estate, and investments, Reitan Retail represents the largest segment, boasting over 3,400 outlets across the Nordic and Baltic regions. In this context, Reitan Retail recorded an operating profit of 3.9 billion NOK, reflecting an upward trend compared to the previous year.
Specifically, Rema 1000 Norway saw approximately five percent growth last year, maintaining an operating result of 2.1 billion NOK, highlighting a stable operating margin of 3.7 percent. This performance underscores the resilience of Rema 1000 in a competitive retail environment. However, while the retail segment thrives, the convenience store sector under Reitan Convenience, which includes brands like Narvesen and 7-Eleven, faces challenges ahead, primarily due to corporate restructuring initiatives.
The restructuring plan involves the closure of about 70 outlets, predominantly Narvesen kiosks located in shopping centers, as the company seeks to optimize its portfolio in the ever-evolving consumer landscape. The CEO's comments about continual adjustments reflect Reitan's proactive strategy to remain competitive and relevant as it adapts to changing market conditions, particularly in a sector susceptible to fluctuations in foot traffic and consumer preferences.
