MD ended 2020 as the second largest discount retailer in Italy and the third largest in sales, with a market share of 15.5% (15.1% in 2019), new data has shown.
Net sales were up 15% year-on-year, to €2.81 billion, well above the average growth rate for the discount segment in Italy (+8.7%), while net profit increased by 56%, to €68.5 million, reports Gdonews.
The retailer opened 39 new outlets (directly-owned and affiliated) during 2020, and the plan for this year envisages 47 store openings (35 direct and 12 affiliated), with sales area of between 1,000 and 1,500 square metres. Also planned is the restructuring of 35 existing supermarkets.
Store Target
According to MD Chairman, Patrizio Podini, the discounter's goal is to reach 1,000 outlets in five years and exceed €3 billion in turnover.
Investments will increase from €200 million in 2020 to €385 million this year, of which €95 million will be invested in the completion of the new logistics hub in Cortenuova near Bergamo, the biggest in Italy’s discount sector.
The 270,000 square metre hub will be completed by the beginning of 2022, but an area for the handling of fresh products will already be operational by the end of June 2021.
Like other grocery retailers, MD also saw growth in its e-commerce service (MDwebstore.it), which that offers only non-food items. However, plans are underway to introduce a food segment, which should be active by this summer in Click & Collect mode.
MD ended 2020 with some 800 stores, eight logistics centres and two offices, located at Gricignano d'Aversa and Trezzo d'Adda.
© 2021 European Supermarket Magazine. Article by Branislav Pekic. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
