Reitan Retail 2021: Solid platform for profitable and sustainable growth
2021 marked a new beginning for REITAN’s retail business with the establishment of Reitan Retail. Solid results, efficient operations and important strategic measures provide a solid platform for profitable and sustainable growth as a leading Nordic and Baltic retail company.
“I am very pleased with our first year as one retail company, both strategically and operationally. We deliver solid results and strong underlying operations, thanks to 42,000 positive and proactive people, who have ensured secure supply of critical goods to our customers – at home, on the go and on the road,” says Ole Robert Reitan, CEO of Reitan Retail.
Reitan Retail has operations within discount grocery, convenience and mobility, with 3 843 sales outlets across seven countries, 1.9 million transactions per day and total systemwide sales of NOK 104 billion in 2021. Operating profit was NOK 3.8 billion, compared to 4.4 billion in 2020.
2021 results were affected by the Covid-19 pandemic and restrictions, contributing to lifting sales in the discount grocery part of the business compared to pre-pandemic levels, while it weighed negatively on convenience, where restrictions contributed to a significant reduction in customer traffic.
“It has been a special year, marked by the pandemic, limited predictability and market fluctuations. On that background, I am particularly impressed that we have had the ability and courage to invest in renewal and strategic measures that position us for the future,” Reitan says.
“We have what it takes to strengthen our position, renew our portfolio and create profitable and sustainable growth,” he says.
Among key strategic measures are:
- The establishment and development of Kolly, competing in the market for hotels, restaurants and catering (HoReCa) in Norway
- The opening of a new factory for Norwegian Chicken (Norsk Kylling), an advanced, energy- and climate-efficient facility for more sustainable poultry production at Orkanger in Trøndelag, Norway
- The roll-out of Nordic Swan ecolabelled car wash in Norway
- The investment into ultra-fast EV charging, with the opening the first Uno-X ultra-fast EV charging facility in April 2022
- New and innovative concepts: 7-Eleven Market in Oslo, Norway, and PBX in Stockholm, Sweden, in 2021, as well as developing a new grocery city concept, Innom, launched in Oslo, Norway, in 2022
Reitan Retail has four business areas: REMA 1000 Norway, REMA 1000 Denmark, Reitan Convenience and Uno-X Mobility. In addition, Reitan Retail operates a portfolio of retail properties to support the core business.
REMA 1000 Norway delivered systemwide sales of NOK 47.6 billion in 2021 and an operating profit of NOK 1.8 billion, compared with NOK 2.2 billion the year before. The decline versus 2020 was mainly driven by investment in lower prices for our customers. REMA 1000 won five out of five grocery price indexes in Norway’s biggest newspaper (VG) and continues to strengthen its price position.
REMA 1000 Denmark had systemwide sales of NOK 25.7 billion and an operating profit of NOK 1.1 billion, compared with NOK 1.2 billion the year before. The REMA 1000 brand received recognition during the year and was named both Denmark's leading brand by YouGov and as Denmark's most sustainable brand by the Sustainable Brand Index.
Reitan Convenience, consisting of well-known brands like 7-Eleven, Narvesen, Pressbyrån and R-kioski, had systemwide sales of NOK 12.9 billion in 2021 and an operating loss of NOK 89 million, compared to a NOK 59 million loss in 2020, both years affected by significant pandemic-related restrictions and financial support to retailers.
Uno-X Mobility, which includes liquid fuel, Nordic Swan ecolabelled car wash and ultra-fast charging for electric cars, had an operating profit of NOK 972 million in 2021, compared with NOK 803 million in 2020, in a year characterised by solid operations and high energy prices.
Reitan Retail's financial position is robust, with a low debt ratio and strong liquidity.
Reitan Retail AS is a wholly owned subsidiary of REITAN. REITAN is exploring the possibility of listing shares in Reitan Retail AS, making a minority of the shares available to other shareholders.
Facts about Reitan Retail
Reitan Retail is a leading retail company in the Nordic and Baltic region with operations in discount grocery, convenience and mobility across seven countries.
We’re a family of 42,000 positive and proactive people and great brands including REMA 1000, Innom, Narvesen, R-kioski, Pressbyrån, Uno-X, YX and 7-Eleven.
Based on strong values, efficient operations and local ownership, we create the best customer experiences in people's everyday lives and contribute to a more sustainable future.
Øyvind Breivik, Head of Media Relations, Reitan Retail: +47 402 26 686, oyvind.breivik(a)reitanretail.no