As part of its 2016 FY results statement, Portugal-based Jerónimo Martins has discussed its investment plans for 2017. Announcing a strong increase in its capex programme, to €700m for 2017, from €482m in 2016, the retailer set out its belief in continued expansion in Poland and Colombia.
Rising capex to fund expansion
Jerónimo Martins said that it planned to invest €700m in 2017, with the increase in spending for the year partly due to a doubling in the planned number of new Ara store openings in Colombia. In 2016 Jerónimo Martins opened 79 stores in Colombia, but said it was aiming to add 150 stores in the country in 2017.
The retailer said that its Ara chain performed strongly in 2016, with sales in local currency terms doubling. It said that the strong growth ‘reflects the interest and receptivity to the value proposition by Colombian consumers’.
Investment to continue in Poland
Jerónimo Martins confirmed that it would continue to invest in Poland, with €400m set to be spent in the country. The company said that the money would be spent on adding 100 net new stores and a new distribution centre. The retailer said the continued investment underlined its belief in its long-term prospects, while the short term positive economic backdrop in the country would help drive sales in the short term too. Jerónimo Martins said that Poland’s ongoing Family 500+ programme should support growth and help drive categories like fruits and vegetables.