Spain: Consum FY results, online expansion

Date : 08 May 2019

As Consum announces its full year 2018 results and investment plans for 2019, grocery ecommerce competition in Spain continues to increase as Glovo and Bon Preu invest in their offers.

Consum see FY results rise 8.45%

Consum has announced FY2018 results saying turnover rose 8.45% to €2.73bn. During the year the retailer invested €149.3m, a rise of 30% over the previous year, with €15.1m targeted at innovation. Consum said that it ended the year with 730 stores, 447 company owned and operated and 283 Charter franchises, with a total selling space of 571,330 sq. m. In 2018 it opened 40 new stores, of which 26 were franchised and 14 company owned, renovated 32 and extended 15.

In 2019 it said it was aiming to open a further 44 stores, 29 franchised and 15 company owned. By geographic area, Consum said it was aiming to open the stores with 16 in Valencia, 12 in Catalonia, nine in Castilla-La Mancha, three in Andalusia and two each in Murcia and Aragón. As part of the results announcement, Consum’s chief executive, Juan Luis Durich, said that it was ‘open to the opportunity to acquire retailers or stores’. Durich stressed it was not looking to acquire complete companies, but was interested in buying groups of stores.

Glovo receives further investment

Spain-based fulfilment service Glovo has raised a further US$169m in investment as part of a Series D funding round. Glovo said the money would be used to expand its service globally, while also enabling it to invest in further innovation around meeting shoppers’ demands for fast paced deliveries of grocery products. This could see Glovo open dark stores, which would operate in parallel to its marketplace of supermarket chains that it works with.

Discussing the investment plans, Glovo’s chief executive, Oscar Pierre, was quoted as saying: “Our Darkstores are urban micro-fulfilment centres located in central areas of a city. They allow us to fully control the value chain and offer the best UX, with a delivery of around 20 minutes. They are run 24 hours a day by Glovo employees whose role is to pick and pack customer orders and have them ready for when the courier arrives. We have launched the offering in Barcelona and Madrid so far and we are still learning and analysing the results”.

Bon Preu expands coverage of delivery service

Bon Preu has added new locations to its delivery service, enabling shoppers in Granollers, Les Franqueses del Vallès an Canovelles to have orders brought to them by the retailer. The company says the expansion is evidence of how it is slowly adding new locations to its coverage and underlines the continued investment in the service that it is making. Shoppers can also ask to collect their purchases from points, which Bon Preu is also opening. In Q1 2019 it said it added a further three click and collect points.