Sonae SGPS : reaches sales of 5,200 million euros in retail in 2016

Preliminary retail sales reveal leadership positions and success of new formats and omnichannel

Joint sales of Sonae retail units grew 7.2% compared to previous year, surpassing 5 billion euros for the first time

Sonae retail businesses registered an accelerated growth in 2016, as all units contributed to increase sales. This performance translated the constant improvement of the value proposition, expansion of convenience formats, success of new store concepts, and investment in the omnichannel, as well as the reinforced business portfolio and growing internationalisation of Sonae insignias.

Sonae MC, Sonae's food retail business, reached a 5.6% growth, increasing turnover by 6.6% over the last quarter, in a performance driven by an increase in LfL sales. In 2016, food retail strengthened its presence in convenience formats, having also opened its first supermarket fully dedicated to healthy food.

Sonae SR, Sonae's specialised retail unit, increased turnover by 11.2% in 2016, as sales increased 14.4% during the last quarter of the year. Once again, Worten strengthened its leadership position in Portugal and increased market share by 10 bps, growing the online operation by 50% in December. Sports & Fashion grew 31.3%, increasing LfL sales as it benefitted from the positive results of its original portfolio, to which Salsa and Losan were added as positive reinforcements over the last two years. Internationally, Sonae retail businesses continued to expand and entered new markets by opening their own stores, establishing franchising partnerships and exporting products, leveraging their competitive advantages.

Concerning performance in food retail, Luís Moutinho, CEO of Sonae MC, states, 'I am particularly pleased with 2016 results. We were able to increase turnover by 5.6% and to reinforce our leadership despite the very tough market environment. This growth was driven by a LfL sales increase of 1.9%, at the same time that we kept betting in the expansion of our Continente Bom Dia urban stores, and the continued improvement of our value proposition and price perception.

These results are also important for the upcoming quarters, as they demonstrate that we have the right strategy and the right resources to reach our objectives'.

As regards to performance in specialised retail, Miguel Mota Freitas, CEO of Sonae SR, says, 'Sonae SR turnover reached €1,439 M, resulting from a turnover growth both at Worten and Sports and Fashion divisions. At Worten, we gave important steps in the consolidation of our Iberian position, pursuing a successful omni-channel strategy, and strengthening our competitive position with market share gains in Portugal and solid growth in e-commerce both in Portugal and Spain.

Sports and Fashion division posted a combined turnover growth of 31.3%, with positive contributions both from the acquired companies, Salsa and Losan, and the original portfolio, thus positioning the division for future growth'.

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