Reitan Retail 2022: Renewal and growth in a challenging year
Normalisation and increased activity after the pandemic, as well as rising energy prices and global inflation, were the most important drivers for Reitan Retail's activities within grocery, convenience and mobility in 2022. Tougher economic times drew customers to discount grocery, while increased travel activity led to customer growth in convenience. In mobility, rising energy prices contributed to a strong result.
Reitan Retail is a leading retail company in the Nordic and Baltic region with operations in discount grocery, convenience and mobility. We are 43,500 people in seven countries and operate strong brands including REMA 1000, Narvesen, R-kioski, Pressbyrån, Uno-X and 7-Eleven. Franchise is the core of our business model, and our purpose is to make everyday life a little bit easier and the world a little bit better.
2022 was a year hit by uncertainty and inflation, sparking new challenges for customers, franchisees, employees and local communities in all seven countries where Reitan Retail operates.
”As we maneuvered challenging markets, we continued to strengthen and renew the company. Our 43,500 people worked hard to secure critical value chains for food and energy, at the same time as we further developed the company, building a solid foundation for long-term value creation, says CEO of Reitan Retail, Ole Robert Reitan.
“I am both grateful and impressed by the efforts made by all our skilled people who have maneuvered demanding market conditions and tough competition in a brilliant way, anchored in our common values and always with the customer as the ultimate boss,” Reitan says.
A highlight for the year was the agreement with German ALDI, for REMA 1000 Denmark to take over ALDI's grocery store network in Denmark. Subject to approval by competition authorities, the transaction will further grow REMA 1000 into one of Denmark's largest discount chains, well positioned for further growth. REMA 1000's position strengthened throughout the year, with market share growth in both Norway and Denmark in 2022.
Systemwide sales for all four business areas – REMA 1000 Norway, REMA 1000 Denmark, Reitan Convenience and Uno-X Mobility – landed at NOK 116 billion in 2022, up from NOK 104 billion the previous year, while revenue was NOK 94 billion against 82 billion, affected by inflation and oil prices, and driven by competent and efficient franchisees and employees.
Operating profit decreased somewhat in the period, to NOK 3.6 billion in 2022 from NOK 3.8 billion the previous year, while profit before tax ended at NOK 2.5 billion against NOK 3.3 billion in 2021.
Investments within retail amounted to NOK 2.1 billion in 2022, in upgrading of store network, convenience outlets and mobility locations, rolling out Nordic Swan ecolabelled car washes and ultra-fast EV chargers for electric cars, as well as sustainability measures, logistics and industry. In 2021, retail investments were NOK 2.3 billion.
Improvement and growth
2022 was Reitan Retail’s second year in operation as one retail company, with activities in discount grocery, convenience and mobility, with 43,500 people, including direct employees and employees of franchisees, all rooted in a strong culture and common values. Reitan Retail operates 3,800 sales outlets, combined accounting for approximately 2 million daily customer meetings in seven countries.
“We have delivered important strategic measures and building blocks for long-term value creation. In 2023, we will continue to develop and grow the business, integrating new stores in REMA 1000 Denmark, renewing of grocery and convenience networks in Norway, while further developing ultra-fast EV charging and Nordic Swan Ecolabelled car wash,” says Ole Robert Reitan.
“With continued fierce competition and our promise to deliver the lowest price in grocery, local ownership, efficient operations and cost control will be more important than ever. We have always been the most cost efficient, enabling us to offer customers the lowest prices. We will continue to deliver on that promise,” Reitan says.
Inclusion and the path to net zero
In 2022, Reitan Retail continued targeted efforts to cut CO2 emissions throughout the company. Own emissions were reduced by 5.1 percent in 2022 compared to 2021 (scope 1 and 2). In 2022, for the first time, we mapped CO2 emissions from the entire value chain, scope 3, which makes up 99.5 percent of our total emissions. Total CO2 emissions from the value chain were 8.6 million tonnes of CO2 in 2022. In 2023, we aim to develop a concrete roadmap towards net zero emissions from our own operations by 2030 and from the entire value chain by 2050.
Another focus area for Reitan Retail is inclusion and diversity, including background, competence, age and gender. In 2022, the aggregate gender balance in the company was good, with 51 percent women and 49 percent men, while there were more men than women among franchisees and management. There is also significant variation between different business areas, and the work on diversity and inclusion continues.
”The value chains for food and energy, of which we are a part, have significant footprint and impact on climate, environment and people. Therefore, we also have a significant responsibility to reduce our footprint where we have the biggest impact and opportunity to make a positive difference. In 2022, we have come a long way towards systematizing the work of transitioning towards a more sustainable future, and we still have a lot ahead of us,” says Ole Robert Reitan.
- February: Kolly’s first delivery to hotel, restaurant and catering market
- April: Uno-X Mobility opened first ultrafast EV charger in Denmark
- May: New city concept, Innom, launched in Oslo
- May: Rune Bjerke new Chair of the Board of Directors
- June: Norsk Kylling world’s first ECC-certified full-scale chicken producer
- November: Uno-X Mobility opened first ultrafast EV charger in Norway
- November: Caffeine number 100 opened in the Baltics
- December: REMA 1000 Norway awarded CDP A-rating for climate leadership
- December: Uno-X Mobility opened Nordic Swan ecolabelled car wash number 52
- December: Historic agreement with ALDI for REMA 1000 Denmark
2022 result per business area
REMA 1000 Norway
- Systemwide sale: MNOK 47 401 in 2022 vs. MNOK 47 642 in 2021
- Revenue: MNOK 34 986 vs. MNOK 34 746
- Operating profit: MNOK 1 699 vs. MNOK 1 841
- Result affected by normalisation following Covid-19, inflation, fierce competition and investment in lowest price, increased market share and Norway’s largest discount grocer
REMA 1000 Denmark
- Systemwide sale: MNOK 28 301 in 2022 vs. MNOK 25 752 in 2021
- Revenue: MNOK 32 799 vs. MNOK 29 541
- Operating profit: MNOK 1 248 vs. MNOK 1 059
- Record-high systemwide sales, increased market share, solid operations and strong like-for-like growth
- Systemwide sale: MNOK 14 688 in 2022 vs. 12 853 in 2021
- Revenue: MNOK 4 829 vs. MNOK 3 987
- Operating profit: MNOK -1 vs. MNOK -89
- Gradual improvement, with increased traffic and mobility following end of restrictions, solid performance in Sweden and Denmark, contracts won for important location, ongoing change in Norway and Finland
- Revenue: MNOK 21 756 in 2022 vs. MNOK 13 251 in 2021
- Operating profit: MNOK 723 vs. 972
- Strong result, affected by solid performance and positive inventory effects from increasing oil prices