As Mercadona announces its partnership with Bringg and Eroski and its cooperatives announce their full year results, we round up news from the country.
Mercadona to work with Bringg for online orders
Mercadona is set to collaborate with Bringg to help improve the efficiency of its online delivery. Using Bringg’s platform is aimed at helping Mercadona organise deliveries from its online-focused warehouses to shoppers more efficiently. Bringg’s software aims to help drivers make deliveries faster by optimising the routes they take and how orders’ loading and unloading can be optimised.
Discussing the implementation of the software, Mercadona’s online product manager, José Ramón Pérez, said: “We are producing results with both on-time delivery and greater efficiency in all of our operations. And all this will continue to improve as we continue to take advantage of our data.”
DIA to close 219 stores in June
According to reports in Europa Press, DIA is planning to close 219 stores in June. The closures following DIA not receiving any bids for them. 38 stores will be closed in Catalonia, 31 in the Valencian Community, 24 in Galicia, 22 in the province of Asturias, 21 in Castilla y León, 16 in Castilla-La Mancha and 15 in Andalucía, amongst others. The reports suggest that DIA was aiming to dispose of 297 stores in total, which implies that it has been able to sell some.
Eroski saw sales fall, but profits rise in 2018
Eroski said group sales in the year ending 31 January 2019 fell 2% to €5.4bn. The decrease in sales came despite the addition of 58 new stores, including 31 opened by franchisees. During the year Eroski invested €95m in the opening of new stores and the renovation of others. Where stores had been updated to the new Contigo format, sales rose by 1.3%. The new stores included the opening of five supermarkets, four petrol stations and a mix of other non-grocery-focused formats.
Although Eroski reported a fall in sales, it said its EBITDA and operating profits both rose, by 3.8% to €250.7m and by 19.1% to €163.6m respectively. The cooperative said the increase in profit was aided by improved efficiencies and its investment in its stores.
Caprabo saw sales fall by 8%
Meanwhile, Caprabo said its sales fell 8% in the same timeframe, to €912m. Caprabo said the fall in sales was due to the reorganisation of its store network and its ongoing store investment programme. During the year Caprabo opened 10 new stores, taking its network to 320. The cooperative also invested in improving its stores, with this aimed at driving in-store efficiencies and improving their competitiveness. Caprabo said it updated 20% of its network in 2018, taking the total share that have been improved to 40%.
The store investment programme has seen Caprabo upweight its fresh offer, raise the visibility of health products and expand its convenience-focused ranges. In 2019 Caprabo has said it will begin building its new logistics platform, which will become fully operational in 2020. The new distribution centre will support Caprabo’s investment in its fresh ranges, while also being set up to manage its online sales.
Vegalsa-Eroski sees sales rise 3% in 2018
Vegalsa-Eroski said its sales rose 3.01% to €1.1bn in 2018. Its ecommerce operations were a strong growth area, with sales rising more than 50%, supported by the addition of further collections points. At the end of 2018 Vegalsa-Eroski operated 18 online collection points, of which 14 were in Eroski Centres and four in its hypermarkets.
It said it ended the year with 263 stores, of which 61 are operated by franchisees, with a total sales area of 230,337 sq. m. At a banner level, the cooperative said it operated five hypermarkets, 96 Eroski Center, 4 Eroski Gas Stations, 78 Family Self Service, 19 Cash Record and an Economato. In 2018 Vegalsa-Eroski invested €18.2m on the updating of its stores.