Ara, a discount banner based in Columbia will invest between €500M to €600M to open more stores in the country over the next two years, Portafolio reports. Ara is owned by Portugal-based group Jerónimo Martins.
Funding from the International Finance Corporation
In addition to other sources, the International Finance Corporation (IFC), an arm of the World Bank, will help to fund Ara’s expansion, with €93M. As of 9M 2018 Ara had 475 stores in the country and plans to open 150 stores in FY 2018. In 9M 2018 recorded €439M sales, a 52.2% increase from the previous year.
Strong private label strategy
Ara’s private label range contains around 850 products, which help the retailer to compete and differentiate its offer. According to Portafolio, sales from its private label ranges contribute to a significant part of its sales. In 9M 2018 Ara launched 189 new private label products. The Be Beauty feminine personal hygiene range is included in this, which Jerónimo Martins launched across all its markets (Portugal, Poland and Columbia).
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