Italian grocery retailer Conad will close 2016 with €12.5 billion in turnover, up 2.6%, compared to last year. This increase is in line with a steady upward trend since 2012, which has led to a doubling of sales.
Conad's market share amounts to 11.9%, and the company has strengthened its leadership in the supermarket segment with a 20.2% share, according to its figures.
The retailer operates a total of 3,088 points of sale, which include 25 Conad hypermarkets, 203 superstores, and 1,078 Conad stores among others, as well as discount stores and cash-and-carries.
The network also consists of 108 drugstores, 36 fuel distributors, 14 pet stores, 19 opticians and 12 Cremeria Sapori & Dintorni outlets.
The retailer has launched a three-year investment plan (2016-2018) worth €785 million (€270 million in 2016, €292 million in 2017 and €223 million in 2018), forecasting annual growth of 3.8%. The investments are earmarked for new openings and renovations, increased energy-efficiency in sales outlets and warehouses, and the construction of new distribution centres.
The company has also put aside €37 million for advertising, of which 15% will be spent on digital media.
This year, Conad expanded its private-label offering with the new Verso Natura brand, in addition to existing brands Conad and Sapori & Dintorni. Its private-label share has grown to 27.4% in supermarkets (8.2% above the market average).
In a market first, Conad has signed a contract with electricity trader Green Network Energy to provide participants in its loyalty-card scheme (Carta Insieme) the option of contracting electricity and gas services at special rates.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
