April 30, 2024

Reitan Retail 2023: Growth and investments for the future

Strong developments in systemwide sales and significant investments impacted the annual results of the Nordic and Baltic retail group Reitan Retail in 2023.

  • Solid growth in systemwide sales for REMA 1000 Norway; investments in price cuts and good development in Norsk Kylling (Norwegian Chicken)
  • Strong development in REMA 1000 Denmark; historic ALDI deal sparks strong growth, 400 stores in Denmark
  • Growth and normalisation in the convenience business post-pandemic; ongoing portfolio optimisation and restructuring
  • Firm underlying operations in Uno-X Mobility; major investments in future mobility

Reitan Retail's systemwide sales came in at NOK 127,684 million in 2023, up from NOK 115,767 million in 2022. Operating profit before fair value adjustment in the real estate portfolio was NOK 3,317 million, compared to NOK 3,455 million in 2022. Operating profit ended at NOK 3,087 million in 2023, compared to NOK 3,597 million in 2022. Operating margin before tax and financial items ended at 2.4 percent, compared to 3.1 percent in 2022.

"First and foremost, I would like to send a big thank you to our customers and to all the 45,000 people across Reitan Retail who work hard every day to win the hearts of our customers," says Reitan Retail CEO Ole Robert Reitan, when summing up 2023.

"Given uncertain market conditions last year and one-off effects affecting the figures, I am pleased with underlying operations and results for the year. We have invested significantly to create safe and sound jobs, maintaining a long-term perspective for the company,” Ole Robert says.

In 2023, Reitan Retail invested NOK 2.4 billion in its retail business. During the year, the number of people working across Reitan Retail increased by about 2,000 to about 45,000 people at the start of 2024.

Market shares, improvements and investments

Reitan Retail operates in seven countries in the Nordic and Baltic countries, with an average of more than 23 customer transactions every second, all year round. The largest business areas are REMA 1000 Norway and REMA 1000 Denmark, together comprising close to 1100 discount stores.

"In Norway, REMA 1000 wins important price tests and is constantly gaining new market shares, at the same time as we work hard on our position as Norway's best discount grocery retailer, with the lowest prices.”

"In Denmark, we are currently opening one to two stores per week. I am impressed by our Danish colleagues, who once again have made REMA 1000 the strongest brand in all of Denmark," Ole Robert says.

He also points out the solid improvement work in Reitan Convenience. "In 2023, customers were finally back to normal after the pandemic. We are seeing a positive effects of the updated strategies in several countries, and we are working actively on improvements, mainly in Norway and Finland. We have a lot of exciting things going on," says Reitan.

About Uno-X Mobility, Reitan emphasises that the company had solid underlying operations in 2023, and that significant investments were made for the future of mobility.

"We will have the ‘yellow jersey’ for the development of ultrafast charging network for electric heavy-duty transport, and we are investing heavily in both Norway and in Denmark. At the same time, we are continuing the rollout of ultrafast EV charging. Such ambitions require investments, and we are already well underway," says Reitan.

Store openings and strategic focus

“Looking back on 2023, the highlight is easy to define: The strategic highlight of 2023 was the approval of REMA 1000 Denmark's acquisition of ALDI's store locations in Denmark, a milestone that illustrates the power and scalability of our business model."

On 2 May this year, REMA 1000 store number 400 will open in Denmark.

"We have our eyes on the future, and we continue to build a robust Reitan Retail with a long-term perspective. In the years ahead, we will strengthen our culture and core business, continue to expand the business, and position Reitan Retail for the future. We will build on our ambitious sustainability agenda, technological development and innovative solutions that make everyday life for our customers a little bit easier and the world a little bit better,” says Ole Robert Reitan.

Highlights 2023:

  • ALDI transaction approved by Danish competition authorities, many new store openings
  • Rollout of 7-Eleven stores and vending machines at Kastrup, Arlanda and Landvetter airports
  • Uno-X Mobility’s first ultrafast charging for heavy-duty transport in Norway and Denmark
  • Participation in Tour de France for the first time for the Uno-X Mobility men's cycling team
  • Uno-X Mobility acquired 57 energy stations in Denmark, in collaboration with 7-Eleven
  • Further investments in improved animal welfare at Norsk Kylling: New hatchery with world-leading technology completed
  • Uno-X Mobility gathers all operations under one brand: Uno-X
  • REMA 1000 ranked as strongest brand in Denmark and at the top in customer loyalty survey
  • R-kioski named best at cutomer service in Finland
  • First fully-electric trucks at REMA 1000 Norway and REMA 1000 Denmark put into operation
  • New and ambitious targets for cutting CO2 emissions and improving the gender balance in all countries

Results 2023 per business area:

REMA 1000 Norway

  • Systemwide sales: NOK 51,280 million (NOK 47,401 million in 2022)
  • Operating profit: NOK 1,769 million (NOK 1,699 million)
  • Solid growth in systemwide sales and sales revenues. Increased market shares, good development at Norsk Kylling, strong competition in the grocery market and investments in price cuts.

REMA 1000 Denmark

  • Systemwide sales: NOK 35,207 million (NOK 28,301 million in 2022)
  • Operating profit: NOK 1,347 million (NOK 1,248 million)
  • Solid growth in systemwide sales and sales revenues. Inflation and costs associated with implementing the ALDI agreement and starting up a new distribution centre in Horsens contributed to margin pressure.

Reitan Convenience

  • Systemwide sales: NOK 16,490 million (NOK 14,688 million in 2022)
  • Operating profit: NOK 213 million (NOK -1 million)
  • Solid growth in systemwide sales and sales revenues. Strong improvement in results in Sweden, Denmark and the Baltics. Successful restructuring in Norway and Finland. Important contracts won at Kastrup, Arlanda and Landvetter airports.

Uno-X Mobility

  • Operating revenues: NOK 20,780 million (NOK 21,756 million in 2022)
  • Operating profit: NOK 285 million (NOK 723 million)
  • Solid development for liquid fuels in weaker markets. Strategic investments in more sustainable mobility solutions, such as electric heavy transport charging. Agreement to add a further 57 energy stations in Denmark.