Esselunga has announced Sami Kahale, formerly its general manager will be its new CEO by the end of the year. Kahale will take over from Carlo Salza, who will become the company's chairman.
Meanwhile, separately, Esselunga confirmed its fiscal 2018 results. It said sales had increased 2.1% to €7.9 bn, although profit decreased by 6.3% to €286.6m, from €305.8m. Updating on its performance, Esselunga said its sales in H1 2019 had seen it generate €4.03 bn, an increase of 3% on last year's figures.
Increase sales with a decline in net profit
Esselunga attributed the net profit decline to suppliers increasing their prices, due to inflation, which it did not pass on to shoppers, to enable it to remain price competitive. Esselunga aims to keep prices below the market average, to help it drive footfall and increase sales. This price focused strategy will be continued to appeal to customer demands. The increase in sales is expected to be positively affected by its growing focus on ecommerce, which is a fast emerging channel in Italy. Esselunga said it had seen a 28% increase in ecommerce sales in 2018, reaching €236m.
Esselunga will invest in the improvement of the product quality offered throughout stores, as well as expanding the range of products through its ‘Drive’ stores. Furthermore, it will continue to be price competitive in the market to maintain its price leadership.