Spanish grocery cooperative Eroski has overcome past difficulties and is now positioned for renewed growth, CEO Rosa Carabel told daily El Pais.
The group underwent a strategic restructuring, focusing on core businesses and withdrawing from less profitable areas by shifting towards the northern Spanish regions where Eroski holds a strong market share.
The company also managed to reduce debt from €3.75 billion in 2010 to €672 million in 2023, following a refinancing agreement in 2015 with banks and last year’s bond issuance.
Revenue reached €5.7 billion last year, with a net profit of €105 million for the first nine months of 2023, reflecting a 69.6% increase over the same period in 2022. The company will release results for full-year 2023 in May.
Cost Management
Eroski is dealing with current inflation by managing costs effectively and raising prices less than its competitors, according to the article.
The retailer also emphasises its private-label offerings (currently 27% of sales) and promotes fresh, locally sourced products to cater to health-conscious consumers. Its loyalty programme boasts six million members.
Online commerce remains an underdeveloped area, representing only 3% of business, suggesting potential for future growth in the e-commerce sector.
With a healthier financial situation, Eroski is ending its divestment phase. It plans to retain its gas stations (41) and Forum Sport stores (66), although the company is open to partnerships for the latter.
The primary focus is on ‘strengthening the food business’, including significant expansion through franchising, the article noted. In 2023, 65 new franchises opened, and another 50 are planned for 2024.
The strategic plan also foresees growth in established regions like the Basque Country, Navarra, Galicia, Catalonia and the Balearic Islands.
