Spain: expansion, local buying

Date : 19 July 2016

As Eroski and Condis discuss expansion plans, DIA says it is aiming to complete the rebranding of El Árbol stores by the end of 2017 and Covirán expands its premium private label range, we round up news from Spain.

DIA to rebrand 50% of El Árbol stores by end of 2016

DIA has invested €14m in 2016 to rebrand 85 El Árbol stores to its La Plaza de DIA banner, a neighbourhood supermarket that supplies 5,000 SKU’s, with a special focus on fresh produce. The conversion means it has 180 stores under the latter fascia, covering 66,700 sq. m of selling space. The pace of conversions means that DIA should reach its target of having converted 50% of the El Árbol estate to La Plaza de DIA by the end of 2016, a step that will see it invest €20m in total. DIA said it is aiming to complete the conversion of all El Árbol stores in 2017. DIA said that stores that are not able to be converted to La Plaza de DIA will be rebranded to the DIA Market format.

Eroski to add 19 forecourts, commits to franchise model

Eroski is set to invest €7m over the next two years on the building of 19 petrol forecourts, most of which will be added next to an existing supermarket, with three set to be opened by the end of the summer. The petrol stations will be located in the Balearic Islands, Cantabria, Catalonia, Navarra, Basque Country and Galicia. Eroski has said that the opening of forecourt increases the sales of the existing supermarket by 4%, which will help it to return to growth and profitability in the short term.

As part of a separate announcement the retailer has said it remains committed to its franchise model. Eroski said that franchising will enable it to grow faster nationally without having to commit a lot of capex and will see it look to add more than 100 franchised supermarkets 2016, up from the 94 it added in 2015. Eroski said that the pace of expansion in 2015 helped franchise stores sales grow by 20%, with the new stores helped by a good performance from the newly opened Andalusian network.

Carrefour spotlights local buying

Carrefour has run a promotional campaign that highlights its buying of grocery ranges from the community of Madrid, which are produced by 71 companies in the area. Carrefour said that it worked with 2,200 suppliers in the community of Madrid and had made purchases worth more than €3.1 bn.

Condis accelerates pace of expansion

Condis has increased the pace at which it has added new stores in 2016, with 26 new stores opened in the first half of the year, expanding its total selling space by 6,250 sq. m. The new stores have been bolstered by the renovation of 10 existing sites and has seen Condis invest €6.5m in its operations. Of the 26 stores 15 were added under the Condis Express banner, with 14 opened in Barcelona and one in Madrid.

Covirán to expand premium private label range

Cooperative Covirán is to expand the number of products it carries under its premium private label, EXQUISITE. Covirán said that the new products will maintain EXQUISITE’s focus on items that differentiate themselves in the market due to the carefully selected ingredients and will add to its range of 1,298 private label products in Spain and 1,012 in Portugal.