(AOF) – The LDLC Group records a consolidated turnover of 266.9 million euros in the first half of 2023-2024, up 5.1% and 0.2% at constant scope. The online sales specialist emphasizes that the 2nd quarter “marks the return to positive organic growth” and that this trend “should continue for the rest of the year” and allows it to aim for “slight growth at constant scope over the entire 2023-2024 financial year, in accordance with the announced objective.
“Store activity remains very dynamic while the slowdown observed in BtoB activity continues, due to a hostile economic environment, but at a slower pace,” comments management.
“Strengthening our territorial network, increasing our notoriety, expanding our product and service offering constitute strategic pillars to become the high-tech brand of choice for a diverse audience and continue to capture new market shares “.
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Concerns remain
According to the Federation of Specialized Trade, Procos, in October 2022, activity fell by 1.5% year-on-year. However, the activity of beauty and health (+ 5.2%) and specialized food (+ 3.5%) are dynamic compared to October 2021. Attendance at points of sale was very impacted by the problems fuel and unfavorable weather. Compared to October 2019, a pre-covid year, the drop in attendance is very sharp (-20.9% in October). Shopping centers and the outskirts are more impacted than city centers with a gap of four to five points.
There are several reasons for concern for the future. The players are experiencing a very significant jaws effect given the increase in their operating costs while the evolution of demand is very uncertain. Very few brands can pass on the increase in their costs in sales prices. The federation therefore asks, among other things, to limit the indexation of the Commercial Rent Index to + 3.5% for the rents of all companies in 2023. It also invokes an absolute emergency: cap the price of energy for 2023 and retroact on contracts already signed to prevent the rate of failures from accelerating.