Italian grocery retailer Esselunga has released its half-year report, reflecting increased revenue and lower margins.
The company has been investing heavily in new store openings while facing pressure on margins due to reduced consumer spending.
Esselunga achieved a turnover of €4.72 billion, up 1.9% year on year, in the first half of 2024, while EBITDA declined by 4.7% to €341.5 million.
Net profit fell by 16.4% to €44.7 million. The company's net debt increased by €35 million to €1.7 billion.
Despite lower profits, Esselunga maintained its top ranking for price competitiveness. Shelf prices showed a 0.4% average increase, significantly lower than the average suppliers' inflation of 1.5%.
The group invested €231 million and opened a new store in Ravenna during the first half, bringing its total network to 192 stores, mostly located in Northern Italy.
Esselunga is expanding its network further with upcoming stores in Genoa, Bolzano, and Treviglio.
However, construction of the first Esselunga store in Siena has been delayed due to legal issues. The company claims that it purchased the land with a valid building permit in 2022 and awaits a court ruling.
Loyalty Programme
Esselunga has relaunched its Fìdaty loyalty programme to offer a more rewarding experience for customers.
The relaunch focuses on the premium Fìdaty Oro card, which allows point collection and access to a credit line usable across Esselunga stores, affiliated businesses, and online platforms.
Existing members will now receive a package of benefits, including a 10% discount on Esselunga Top products; €1 e-commerce delivery fee for three months; free annual subscription to Doc24.it (online telemedicine); two-month free subscription to the Infinity+ streaming service; €10 birthday voucher; and a welcome kit for new members.
Since 2020, Fìdaty purchase vouchers alone have helped customers save over €350 million. Additionally, the programme contributes to various social causes through customer collaborations, supporting initiatives in health, research, environment, and community development.
Esselunga is also expanding its Fìdaty catalogue with new partnerships and additional rewards.
