Spain: results, expansion and renovations

Date : 13 May 2015

As DIA announces first quarter results, Caprabo and Consum discuss the performance of their stores and the benefits of new concepts and SPAR’s new partner for the Galicia region examines opportunities for expansion, we round up news from the country.

DIA: Q1 sales positive, despite multiple operational hurdles

DIA has announced first quarter results saying that gross sales under banners grew by 17.0% –15.1% in constant currency terms – to €2.5 billion, aided by the integration of El Arbol and currency effects from the weakening Euro. Organic sales globally were up 6.9%, with same stores sales rising by 1.6%. At the end of the quarter, the retailer said it operated 7,269 stores, a net addition of 782, with 349 coming from net new openings and 433 from the acquisition of El Arbol.

By geography DIA said that gross sales rose by 9.7% in Iberia, with organic sales and comparable sales contracting by 2.5% and 4.5% respectively, albeit the latter figure was a strong improvement on the 6.7% fall in comparable sales seen in the fourth quarter of 2014. The retailer said it was aiming to continue this improvement as it implements a major programme to renovate its DIA Maxi stores in Spain, the conversion of the acquired Eroski stores to either DIA or La Plaza banners and the transformation of 100 Minipreco Market stores in Portugal to a new model by the end of 2015. In its emerging markets division, DIA said that it saw like-for-like sales rise 11.9%, but tempered this by saying that it had seen tougher conditions in the countries than previously.

Caprabo: positive development from renovated stores

Caprabo, which is part of the Eroski retail organisation, has announced that its updated stores are having a positive effect on its sales performance, and are seeing shopper numbers rise by 11% and average sales increase by 11%. The retailer said that while the sales increase had been seen across most categories, it had been most effective in the super fresh areas, with fresh produce sales rising by 15%, while fruit and vegetables had been boosted by 20% and bread by 34%. Caprabo said that it had renovated 120 stores to the new format, about 40% of its estate, and planned to update a further 30 in 2015 as part of its plan to invest €80 million to relaunch all its stores by the end of 2016.

New SPAR partner aiming to add 150 stores

Following on from the signing of the agreement with SPAR Spain, Galicia-based wholesaler Cuevas has announced that it is aiming to develop and expand the brand in the region. Cuevas said that it was aiming to open 150 to 200 SPAR supermarkets and convenience stores in Galicia that would provide shoppers with a local solution to their weekly and top-up shopping needs. The first store to be opened as part of the agreement will be in Vilarchao, where Cuevas is set to open a 150 sq. m SPAR store that carries 1,800 private label products. The new store is part of Cuevas’s plans to open 16 SPAR supermarkets and convenience stores in 2015. If Cuevas meets its target it will see SPAR strongly increase its presence in Galicia, where it operates 70 stores presently.

Consum enjoyed strong growth in 2014

The cooperative retailer Consum has announced full year results for 2014 saying that turnover rose 5.6% to €1.95 billion. The retailer said that its results had been boosted by the addition of 35 new stores, of which 14 are company owned and operated and 21 run by franchisees, and the updating of a further 38 stores. Consum’s focus on fresh and purchasing locally aided its performance, with sales of fresh products growing by 7% during the year.