As Caprabo highlights the benefits of its store update programme, Covirán restructures and sets out its expansion plans, while research from online store Soysuper shows which retailers have been adding to their ranges during 2014, we round up the news from the market.
Caprabo sees sales growth following store updates
Caprabo has said that sales growth following its store updates, at 9.5%, have ‘so far exceeded expectations’ and initial company forecasts. The retailer has said that it will invest €80 million in its stores during the time frame to 2016 and will end 2014 with 120 stores updated to the new format. The retailer has said that it has also made the store environment more welcoming by widening aisles, lowering shelves to provide better sightlines across categories and boosting the quality and use of visuals.
The new store design puts a greater focus on fresh produce, by boosting space dedicated to the category by 20%, enables Caprabo to add to its ranges, seeing it add 15% more products, and boost innovation. Specifically in relation to its fresh ranges, Caprabo said that sales in the category had risen 14% since the updating, with bakery sales rising 34%, fruit and vegetables up 20% and sales of fish and meat up by 15%.
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Covirán aiming to strengthen brand in Spain and abroad
Discussing the retailer’s strategy for the medium term, Covirán’s chief executive, Luis Osuna, said that the retailer was looking to ‘strengthen the brand, both in Spain and abroad’. Osuna said that it was the right time for the retailer to investigate strategies for international expansion due to its ‘optimal results’ following the economic downturn. The retailer is expected to open its first store in Morocco in 2015, with Osuna noting that it could expand into Latin America and other European markets, despite the more developed nature of cooperatives in the latter region. In its existing operations, Osuna said that the retailer would continue to expand – it is aiming to add 250 net new openings in 2015 – and modernise stores to its new concept.
To aid the retailer’s evolution, in a separate announcement, Osuna said that it had modified its organisational structure to create two new roles: Deputy Director for General Business, which will be filled by María Aguilera, and Deputy Director for Finance and Operations, to be filled by Rafael Cortés. Osuna said that appointments would help ‘ensure the future growth of the retailer and strengthen its collaboration with its franchisees and other partners’.
Auchan increases range, while Carrefour has removed products
Research from Spain-based ecommerce store, Soysuper, has revealed that Auchan has increased the size of its online range by 67% over the last two years, expanding the number of SKUs available considerably more than rivals. The research showed that the only other retailers to expand their range were Eroski, which grew by 17%, Condis (13%) and Mercadona (5%), while the range fell by 15% at Carrefour and by 13% at El Corte Ingles.