Eroski: sales and channel development

Date : 07 October 2019

Spain-based Eroski has announced an increase in sales of almost 2% in its four major territories, in the first half of its financial year. Separately, Vegalsa-Eroski has further developed its drive format and opened a new store in Castilblanco de los Arroyos. Meanwhile, Caprabo plans to increase the sales of products through its proximity programme.

Sales growth…

Eroski announced sales growth of 1.9% in Galicia, the Balearic Islands, Navarre and Basque Country. It said its performance in these areas had been strengthened through the roll out of its Contigo (With you) store design, which has been received positive by shoppers. The retailer repaid €68m of debt and generated an operating profit of €65m in H1 2019, an increase of 10% compared to 2018.

...driven by sustained strategy

The retailer invested in the remodelling of 116 stores, which were updated to the contigo concept. In addition, it also invested in the opening of 38 new stores, including one supermarket, one cash and carry, 32 franchised stores, two shoe stores and two travel agencies. Eroski ended the first half of its financial year with a network of 1,651 stores and has more than 6m loyalty cardholders. During H1 2019 the retailer said shoppers had benefited through an investment of €127m in promotions and personalised offers.

Vegalsa-Eroski evolves its online presence

Vegalsa-Eroski has developed the drive format for its ecommerce channel. The format is the second online collection point, exclusively for cars. Currently the retailer has a total of 19 in-store collection points and two collection points for cars in Galicia. The drive format allows shoppers to choose the place, date and time of collection, with an option to collect the order on the same day available. Collection parking bays for shoppers allows staff to place the shoppers' order straight into the car, while they remain in the car.

During Q1 2019 Eroski’s online channel registered four additional collection points in Galicia. The group said it has 5,000 registered online shoppers and offers delivery to nine out of 10 Galician households.

New store opening

Eroski has opened a new franchised supermarket in Castilblanco de los Arroyos. The store offers a commitment to local and fresh seasonal products and an emphasis on promoting healthy eating. The retailer also offers shoppers new ways to save.

Caprabo developments

Caprabo has committed to develop its proximity programme. The 350 proximity products offered by Caprabo have discounts of up to 50%. The development of the proximity products sees an increase in fresh range and widely available in new stores. Caprabo has anticipated the sales of product of proximity to reach €30m by the end of 2019.

The retailer’s annual promotional campaign of Catalan products highlights the personalisation of the assortments in the different regions of Catalonia. Increasing the retailer’s understanding of the production which exists in the territory.

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