Spanish retailer Eroski has said that it is planning to 'transform' its retail network, as well as bolster its healthy eating and sustainability credentials, following a refinancing agreement with its banks.
Announcing its 2018 results, Eroski said that it reduced its financial debt by €187 million last year, meaning that the retailer has repaid close to €1.8 billion in debts since 2010.
Net Sales
The group posted net sales of €4.97 billion in full-year 2018, which is down marginally on the previous year, due to an ongoing store refurbishment plan.
Operating profits were up 19.1% to €163.6 million, which means that the group has now increased its yearly profits for eight years in a row, it said.
Profits were boosted by 'various projects aimed at improving efficiency and productivity and [...] the transformation and renovation of the commercial network', the group said.
'Contigo' Rollout
During 2018, the group said that it continued the rollout of its 'Contigo' ('with you') operating model, with 670 stores, or around 70% of its estate, having now been converted to the new model.
The Contigo model has helped boosted its performance in the Basque Country, Navarre, Galicia and the Balearic Islands, which saw collective growth of 1.3% in turnover last year, the group said.
It said that as a result of the new operating model, the group has 'reinforced its leadership' in the north-central and north-west regions of Spain, where the focus of the refurbishment plan has been located thus far.
New Openings
The group opened 58 new stores in 2018, of which 37 were franchise operations and 21 company-owned stores. Investment in these new stores (together with franchise investment) totalled €95 million last year.
Last year also saw the rollout of its new sports store brand, Dooers.
Eroski's parent cooperative Eroski S.Coop closed 2018 with a profit of €13.9 million, 6.6% higher than in 2017.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
