Italian retailer Conad has said that its 2019 performance 'exceeded expectations', as the business posted a 5.9% increase in turnover to €14.2 billion for the full year.
However, chief executive Francesco Pugliese warned of the potential recession to come, saying that it will require "great responsibility" to navigate through what could be a challenging time.
Taking The Lead
"We are proud of the performance achieved and we know that being a leader involves great responsibilities, especially at a time when the country is preparing to go through a recession unimaginable until a few months ago," Pugliese said.
Conad said that its banners saw a 0.9% increase in market share for the year, making the group the market leader in Italy.
The group operates 3,207 stores across Italy, across a range of formats, with 31 Conad Hypermarket, 241 Conad Superstore, 1,122 Conad , 401 Margherita Conad, 986 Conad City, 241 Todis, and 19 Sapori & Dintorni outlets, as well as 166 stores trading under other banners.
Over a ten year period, the group has seen its turnover rise from €9.8 billion in 2010 to €14.2 billion last year, an increase of 44.9%.
Auchan Acquisition
Last year saw the group finalise the purchase of the Italian operations of Auchan Retail, with the first 66 outlets being transferred to the Conad banner between October and December.
On the acquisition of the Auchan assets, Pugliese added that the move was "a development action that is at the same time a rescue operation", describing it as a "unique opportunity" for the Conad business.
Private Label Performance
Conad reported €3.9 billion in sales for its private label brands in 2019, with its store brands now accounting for 30% of its market share – some 9.4% higher than the market average, according to IRI data.
Conad now boasts some 4,050 private label SKUs, with 3,300 SKUs across the Conad 'Logo Rosso' brand, and the remainder across the Conad Percorso Qualità, Verso Natura and Sapori & Dintorni brands.
Last year also saw the launch of its new Parafarmacia Conad brand, consisting of products developed to improve mental and physical well-being.
On sustainability, Conad said that it plans to publish a Sustainability Report, with the group recently implementing a process to measure and assess the impact and environmental performance of its logistics and distribution businesses.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
