Supermarket chain Shufersal Ltd. (TASE:SAE) continues to report weak results. This morning, the company released third quarter financials showing retail sales of NIS 2.97 billion, compared with NIS 3.06 billion in the corresponding quarter, representing a 2.8% decline, mainly attributable to price reductions. Same store sales fell 3.5%.
Revenue from Shufersal's real estate activity totaled NIS 45 million, compared with NIS 46 million in the corresponding quarter, representing a decline of 2.2%.
Shufersal made an operating loss in the third quarter of this year of NIS 3 million, 0.1% of sales, compared with an operating profit of NIOS 106 million, or 3.4% of sales, in the corresponding quarter. The company made a net loss of NIS 24 million in the third quarter of this year, compared with a net profit of NIS 34 million in the corresponding quarter.
Shufersal chairman Rafi Bisker and CEO Yitzchak Abercohen said, "Shufersal continues to implement its strategic plan, which includes the 'great price reduction' in all its retail formats, closure and downsizing of inefficient branches, streamlining and savings with an emphasis on the corporate headquarters, cut backs on discount vouchers and customer clubs, strengthening of the company's private brand, and so on.
"The current quarter's results, like those of the previous quarter, reflect the execution of a new work plan that started in the second quarter of this year. This plan was launched in the light of the changes taking place in the food retailing market, characterized by a decline in the level of private consumption and continuingly rising competition between the chains, particularly in the discount segment."
Shufersal's share price is currently down 3.3% on the Tel Aviv Stock Exchange.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2014
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