Italian retailer Conad noted that it is ending 2018 with a 3% growth in turnover, to €13.4 billion, continuing the positive sales trend that the retailer has experienced since 2002.
It has also further reduced the gap between itself and market leader Coop, increasing its share from 12.5% in 2017 to 12.9% in 2018, while strengthening its leadership in the supermarket segment to 22.4% (21.5% last year).
Net assets increased from €2.37 billion to €2.53 billion, meaning: the retailer has been able to implement a €1.3 billion investment plan for the 2018-2020 period, €530 million of which is allocated for 2019.
These resources will be used to expand its sales network, for acquisitions and renovations, and to make its stores and warehouses more energy efficient.
Leadership Position
Conad is the market leader in the Abruzzo, Calabria, Lazio, Molise, Sardinia and Umbria regions, second in Campania, Emilia-Romagna and Sicily, and third in the Marche, Tuscany and Valle d'Aosta.
It ended the year with 3,225 outlets – a net increase of 76 on the same period last year. Its portfolio includes 26 Conad Hypermarkets, 229 Conad Superstores, 1,096 Conads, 972 Conad City stores, 465 Margherita Conad stores, 20 Sapori & Dintorni stores, 240 Todis discounters, and 177 outlets trading under other names.
The other sales concepts include 39 Conad petrol stations, 135 pharmacies, 15 opticians and 26 PetStore Conad stores.
During 2018, the retailer invested €394 million, of which 74% was allocated to new openings and the rest on renovations. Productivity per square metre grew to €6,510 from €6,140 last year, above the market average of €5,620.
Commenting on the group's results, CEO Francesco Pugliese said that the performance was better than expected, especially in light of the “worrying decline in consumption”.
Elsewhere, general manager Francesco Avanzini pointed out that the Conad brand is growing faster than the market, and the retailer is aiming to be the market leader in 2019.
Conad has three strategic axes for growth: 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.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.
