Italian discounter MD is celebrating 25 years of operations with a pledge to reach 1,000 stores by 2023.
The family-run company currently operates 780 outlets, distributed throughout all Italian regions.
New Openings
Speaking at an anniversary event in Naples, CEO Patrizio Podini said that the average of 35 to 45 store openings per year will be maintained.
The stores will be all based on a new format, originally launched in 2016, with a strong focus on technology, innovation and eco-sustainability.
Logistics Centre
To support the growth of the network, a new logistics centre is being built at Cortenuova, strategically located on the Brescia-Milano highway.
With a surface area of 91,000 square metres and a capacity of 50,000 pallets, it will serve the Lombardy, Liguria, Piedmont and Veneto regions when completed in December 2021.
Sales Targets
MD is targeting 8% to 10% growth in turnover in the period 2019 to 2023, resulting in a €1.2 billion rise in gross sales.
The company, founded 25 years ago by Patrizio Podini, has a 15% market share, employs 7,000 people and closed 2018 with €2.5 billion net sales, an increase of 7.7% on the previous year.
The retailer is also focusing on the growth of the digital channel. Customers can already buy non-food products online (electronics and appliances) and the intention is to add food to the offering.
Forecasts indicate that, within 15 years, the digital channel will account for 15% of the volume of food sales in the large-scale retail channel.
Discount Growth
MD is the second biggest Italian player in the discount sector with a 15% market share. It has seen constant growth over the last five years, registering the highest average annual growth rate (15.6%) of Italian large-scale distribution, according to Mediobanca’s report from December 2019.
In May, MD purchased 21 stores in Sicily belonging to Gruppo Abate, which in just 40 days have been restructured and reopened with the MD banner.
The deal has further strengthened MD’s presence in the region, where it operates 90 stores (directly-owned and affiliates), supplied by the Dittaino distribution centre in the province of Enna.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
