Spain: loyalty programmes, investment

Date : 17 December 2015

As Eroski celebrates the anniversary of the relaunch of its loyalty programme, Consum marks its 40 anniversary by aiming at breaking through the €2.0 bn revenue mark and DIA sets out its expansion plans, we round up news from the country.

Eroski spotlights benefits of loyalty programme

On the anniversary of the relaunch of its loyalty programme, Eroski Club, the retailer has said that the updated scheme has proved extremely popular with shoppers. It said that shoppers using the card had received €110m in savings through offers and promotions and was now being used in relation to 73% of purchases at its stores. Commenting on the results, Eroski’s marketing director, Martin Gandiaga, said: “Eroski Club is a cornerstone of our new ‘Contigo’ (‘With you’) business model and is playing a key role in the changes being felt internally at the company and placing the shopper at the centre of our work, a step that is consistent with our identity as a consumer cooperative.”

Separately, the retailer opened a store in the enclave of Melilla, in northern Africa, with franchisee Euroafrica de Supermercados. The 1,200 sq. m store moves Eroski a step closer to meeting its target of adding 100 franchised stores in 2015, up from 58 it added in 2014.

DIA sets out expansion aims for Spain

DIA’s chief executive, Ricardo Curras, has set out ambitious growth plans as part of its aim to grow its market share to 15% by 2020/2021, from 9% in 2015. The growth will be driven by adding 2,000 stores, albeit without giving a timeframe, with the figure being made up of about 100 to 120 being added organically and DIA playing a key role in the markets’ on-going consolidation. Curras said that the business’ growing size would provide it with increased bargaining power with suppliers and drive economies of scale.

Consum celebrates 40th anniversary, targeting €2 bn turnover

As the retailer continues to celebrate its 40th anniversary, Consum has said that it is expecting to break the €2 bn turnover mark in 2015 as it looks to drive growth of 5% in the year. Consum said that its strong performance has been aided by its focus on fresh ranges, prices, providing personalised discounts and an improving market environment, which has helped drive larger basket sizes. To maintain the pace of turnover growth, Consum said that it would continue to add stores where possible and was targeting the addition of 10 new stores, split evenly between company-owned and franchised, before the end of January 2016.

Dinosol adds stores on Tenerife

Dinosol has acquired two supermarkets on Tenerife, a step that will see it add a 600 sq. m and a 1,600 sq. m store to its network on the island. Both stores will be updated to incorporate Dinosol branding, expanding its presence to nearly 220 supermarkets. The purchase of the stores came before the retailer announced that it had secured €60m in new funding to help it refinance its debt, improve its capital structure and enable it to expand. The investment will be split into two parts, with the second tranche of €20m used to purchase a distribution centre and reduce its on-going rental costs.

Simply adds pick up points for SEUR

Auchan-owned Simply has announced that it has joined the network of collection points for SEUR, which will see 17 supermarkets added to the association as part of an initial trial. The retailer said that the service will be available in 120 stores in early 2016.