Italian retail cooperative Coop Alleanza 3.0 bounced back to profitability in 2023.
Sales grew 2.6% at the cooperative to reach €5.7 billion, while net profit rose to €20 million, from a loss of €117 million the previous year.
This turnaround is attributed to improved management strategies implemented as part of the retailer's 2023-2027 recovery plan.
Strategic Plans
Announcing its results, Coop Alleanza 3.0's president, Mario Cifiello, and director general Milva Carletti outlined the company's strategic plan for the coming years.
The retailer is targeting a net profit of €70 million by 2027, with a total investment of €760 million in its operations.
In 2023, it had expected a consolidated deficit of €33 million, but instead achieved a surplus of €1 million. This resulted in a positive EBITDA for both the cooperative (€85 million) and the consolidated group (€194 million).
In the current year, Coop Alleanza 3.0 anticipates a consolidated profit of €3 million, with a 2% sales increase, despite a recent decline in consumer spending.
Store Investment
Coop Alleanza 3.0 allocated a total of €120 million in 2023 to improve its store network and customer experience. Of this amount, €95 million was spent on renovating 50 stores and opening new stores in various locations, including Rimini, Venice, Mantua, and Messeretico.
The retailer also used part of this budget to absorb some price increases.
In 2024, Coop Alleanza 3.0 plans to continue expanding its store network with three new locations in Bologna, Trieste, and Ferrara. Additionally, it plans to renovate around 20 supermarkets during the year, with two more new stores planned for Modena in early 2025.
The cooperative is also focusing on expanding its own-brand product range, aiming to reach a market share of 40% by 2027, up from 30.6% in 2023. To compete with the discounters, the retailer plans to introduce a new line of entry-price products called Coop Spesotti.
