Italian retailer Conad's private label range achieved a turnover of €3.5 billion in 2018, up 7% year-on-year, and accounted for a quarter of the food retailer’s overall sales.
Conad's private label assortment consists of over 3,600 SKUs, of which 1,400 were launched or relaunched last year.
These include the traditional Conad, Verso Natura, Sapori & Dintorni brands, as well as new lines that meet the requirements of modern consumers, such as Conad Alimentum, Conad PiacerSi, Conad Essentiae, Conad Baby.
Retailer Performance
Conad posted a 3% increase in turnover to €13.4 billion last year, and holds a 22.4% share of the Italian grocery market.
The retailer said that its performance was due to both the development of its sales network, as well as the performance of its private label offering.
Conad’s private label offering also accounts for more than 50% of the growth of the entire own-brand segment in Italy, with an estimated 8.6 million Italian families regularly buying Conad-brand products.
Conad spent around €38 million on marketing and communication for its private label brands last year.
The retailer has also sought to optimise the production processes for its private label ranges, with the four main production facilities in which said products are produced seeing a 9.5 decrease in carbon emissions.
Conad has outlined three strategic axes for growth in 2019: a focus on continuous convenience (Bassi & Fissi), on premium brands (Sapori & Dintorni, Verso Natura) and on new trends, such as well-being (with PiacereSi) and health.
Commenting on its 2018 performance, CEO Francesco Pugliese said in December that the performance was better than expected, especially in light of the “worrying decline in consumption”.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
