Spain: FY results and rebranding stores

Date : 23 June 2015

As Ahorramás and Grupo IFA announce full year results for 2014, DIA sets out expansion plans for its new ‘La Plaza de DIA’ banner and Hiperber introduces an ‘Atacajero-like’ store, we round up news from Spain.

DIA aiming for 100 ‘La Plaza de DIA’ by end of 2015

Following the opening of five La Plaza de DIA stores so far, with four in Andalucía and one in Madrid, DIA has said that it is aiming to convert about 100 of the Eroski stores it has acquired to the new format by the end of 2015. The conversions will see DIA invest between €40 million and €50 million, which will enable it to move away from its hard discount roots.

For more on DIA’s new banner, see our report from the store in Madrid, here.

Ahorramás sees turnover rise 1.1% in 2014, aiming for 2.7% in 2015

Madrid-focused Ahorramás has announced full year results for 2014 saying that turnover rose 1.1% to €1,411.9 million, while forecasting that it will grow turnover by 2.7% in 2015 to reach €1,450 million. To help underpin growth, Ahorramás said that it will invest €60 million in its operations to open eight new stores, to the more than 230 it operated at the end of 2014, and growing selling space by 3.2% to 186,825 sq. m.

Hiperber launches ‘Atacarejo’ style store

Following on from Carrefour’s launch of an ‘Atacarejo-like’ store under the Supeco banner, local chain Hiperber has announced that it has opened its first Cashber store, providing cash and carry prices for all shoppers. Hiperber has said that the first Cashber, a remodelled Hiperber in San Juan, in Alicante, will be used to measure shopper interest in the concept, before new stores are added elsewhere in the country. Hiperber said it had invested €100,000 in the remodelling of the 2,300 sq. m store to enhance the perishable offer – fresh fruit and vegetables, deli and bakery – and to add a fish counter. If successful, Hiperber believes it can add Cashber stores on the edge of towns and cities to meet shoppers’ desire for a selected range of products, focused on fresh categories, at low prices.

To see more on Atacarejo, see our insight presentation Assessing Latin America's growth format here.

Covirán to maintain strategic focus to 2020

Following the holding of its General Assembly, Covirán has announced that it is maintaining the strategic focus it has established as part of its Strategic Plan 2020. A major part of the plan is underpinned by expansion, in Spain, with growth in territories like Canary Islands, Galicia, Castilla Leon and Catalonia a priority, and internationally, in Portugal, too. The retailer will hope that continued growth will help maintain the revenue expansion it enjoyed in 2014, when store numbers rose by 1.5%, to 3,245, and turnover increased by 3% to €618 million.

Miquel trials NFC technology in-store

Miquel has announced that it is trialling NFC technology at its supermarket banner Suma to enable shoppers to use their smartphones to download and redeem coupons in-store. Miquel has said that the initiative will run for one month and use adhesive labels with NFC chips to provide exclusive discounts in an innovative and simple way. The trial will be run in 29 franchised Suma stores in conjunction with Tiendeo and enable phones passing with 10 centimetres of the NFC label to exchange information. According to the head of retail marketing at Suma, Mireia Ruiz, the trial is aimed at promoting ‘interaction between shoppers and the retailer through the use of new media, introducing technologies that are likely to become increasingly part of shoppers’ everyday lives in the medium term’.

Grupo IFA launches new promotion, grows revenues by 1.9%

Buying alliance Grupo IFA has launched a new promotion under the tag line ‘La cesta que no cuesta’ (‘The basket that does not cost’), which will see 50 families win free shopping for a year. The promotion is being tied to the Group launching a presence on two new digital channels, through a microsite and a mobile app, to spotlight its proximity offer for shoppers.

In a separate announcement, Grupo IFA said that it enjoyed revenue growth of 1.9% in 2014, taking consolidated revenues to €10.51 billion. The group said that revenue at its retail arm grew by 2.4%, to €8.78 billion, while its wholesale channel saw revenues decline by 0.4% to €1.73 billion. Its members added 385 stores and seven cash and carry centres during the year, which saw IFA end 2014 with 4,121 outlets and 219 depots.

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