OREANDA-NEWS. On 25 June 2009 was announced, that Lenta’s turnover in the first quarter of 2009, in comparison with the first quarter of 2008 has grown for 17 %. This growth goes on in the background of general decrease of 1,1 % in retail trade turnover of Russia for the same period.

With turnover of 2,34 million dollars in 2008, the company’s operational profit in the last year made 223 million dollars, the debt - 400 million dollars (it remains stable for already several years).*

However, "Lenta" is expecting not to increase but to reduce the debt load. At the same time, investments with the company's own resources will be realized. With such goals in view, about 55 million dollars have been allocated to the budget in 2009 for renovation, reconstruction of the already working shops (this is not only and not so much due to wear of the equipment, but mainly to the need to provide better service to customers); besides, investments in IT, development and construction are planned (with the arrangements for opening of Lenta shop in Rostov – on-Don).

The Company’s stable position in crisis conditions is provided through efficiency that has always been and still remains a very important component. In the period since October, 2008 the company did not have to change the variety of goods essentially (it was not excessive and made about 15 000 units), it was not required to make any serious staff downsizing. All shops of the network do work and increase their sales volumes.

On the average, market share in the region of Lenta’s presence makes 20 %. This parameter has grown in comparison with the last year for 2 %. In some cities with a lower level of competitiveness, and also in the locations where "Lenta" works for more than year, this parameter is higher: for example, in Omsk - 23 % (the parameter got doubled for the year), Novosibirsk - 23 % (the parameter has increased for a third), Petrozavodsk (34 %).

An average bill in "Lenta" in the first quarter of 2009 has grown in comparison with similar period of 2008 for 3,6 % but, as well as in the majority of the companies, growth of average bill in "Lenta" is less than official inflation. Low growth rates are caused, first of all, by reduced demand for nonfoods which make approximately 20 % of the network’s turnover.

For the last half a year, range optimization has been done, at the same time the number of supplying companies practically has not decreased. Now, responding to the customers’ demand, "Lenta" again focuses on the range which was available the network 6-8 months ago. The company plans to increase the share of the goods under private trademarks: by the end of the year their share in the turnover of food should achieve 9 %. During the last six months this parameter has grown from 7,2 % in December 2008 up to 7,8 % in June 2009.

"Lenta" plans to generate profit not through gross extras, but through increase of the turnover. The company has all resources for this purpose: the level of popularity of the network in the regions of its presence makes 93 % on the average. For the year this parameter has grown for 3 %. In those cities where Lenta shops were opened less than a year ago, popularity level growth rates have reached 10 % annually.

The number of holders of Lenta’s permanent customer cards, through April 2008 to April, 2009 has increased for 29 %, and currently makes 3 million persons. I.e. the Company has the most important resource for growth – its customer base is maintained at stable level.