Italian grocery retail group Crai has implemented a new business model that emphasises proximity, local sourcing, and social responsibility while prioritising sustainability and community engagement.
Speaking on the occasion of the presentation of the company’s first Sustainability Report, CEO Giangiacomo Ibba, announced that Crai is focusing on the proximity format because time has become a precious commodity for consumers, according to a report in the daily Corriere della Sera.
The focus on local communities is particularly important in Italy, where a large number of small municipalities exist. These municipalities often have populations of less than 3,000 people and are characterised by a strong sense of community and social connection.
Crai's decentralised model allows the company to establish a presence in these areas and provide essential goods and services to residents. This approach also supports green mobility by reducing the need for long-distance travel.
Sustainability Goals
In terms of sustainability, Crai is committed to reducing food waste, promoting local sourcing, and investing in environmentally friendly practices.
The company collaborates with charities to donate surplus food, optimises its logistics operations to minimise transportation emissions, and prioritises the use of sustainable packaging.
Crai also focuses on quality and sustainability by sourcing local products and developing its private label brand that offers 2,700 SKUs, adhering to stringent quality standards, utilising premium ingredients and eco-friendly production methods.
Crai's successful model has the potential to be exported to other markets. The company is currently exploring opportunities in Budapest and Bratislava to open two temporary stores to introduce Italian food and lifestyle products to these regions.
The Crai retail group operates through a network of 1,800 stores, owned and operated by over 1,300 local entrepreneurs who are affiliated with the Crai system.
Crai generated €3 billion in revenue in 2023 and has set a goal of reaching €4 billion by 2027.
