Israeli supermarket chain Shufersal Ltd. (TASE:SAE) reported weak results for the first quarter of 2022. The company attributed the poor performance to the end of Covid lockdowns, and the timing of the Passover holiday, which last year boosted sales by falling in the first quarter.
Shufersal's revenue in the first quarter of 2022 was NIS 3.5 billion, down 7% from NIS 3.8 billion in the first quarter of 2021. Net profit in the first quarter of 2022 was NIS 27 million, down 76% from the first quarter of 2021.
Shufersal's new appointed CEO Ofer Bloch told "Globes," "We were in a quarter where we returned to routine after the closures and also among the world's biggest retailers like Walmart we see a fall in results as a consequence of returning to routine, and this mainly hit food retail. In addition, as happens every few years the Passover holiday and the days preparing for it fell in the second quarter. This is a very significant holiday in terms of sales and so it influences the company's sales.
"The return to routine includes the fact that there are less shoppers. The fact that some of them are abroad and some of them go out to eat in restaurants influences sales. We are working to strengthen our institutional arm and promote Shufersal activities with businesses, and see here a significant engine of growth because the return to routine means people are eating out."
Shufersal also sees online sales and Be Pharma as engines of growth. Be Pharma reported revenue of NIS 269 million in the first quarter of 2022, up 25% from the first quarter of 2021.
Published by Globes, Israel business news - en.globes.co.il - on May 31, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.