Spain: online, franchising

Date : 07 April 2016

As Covirán announces its 2015 full year results and its chief executive discusses his outlook for the market, DIA extends the coverage of its online store to new cities and Condis discusses its franchising strategy, we round up news from the country.

DIA extends reach of online channel…

After recently expanding the coverage of its online store to further cities, DIA has said it has launched the service in Alicante and Valencia. DIA’s online store enables shoppers to buy from over 4,000 products, with many of them unavailable in its stores or extending ranges, such as in relation to gluten free and Fairtrade. Although online grocery retail is less developed in Spain than other markets in Europe, retailers are investing further in it in 2016 as competition rises and everyone prepares for the potential expansion of Amazon’s offer in the country.

…As Condis grows franchisee numbers

Condis announced it had opened 33 stores in 2015, with 28 of them added by franchisees. Franchisees are playing an increasingly important role for Condis, with entrepreneurs adding twice the number of stores in 2015 as they did in 2014. The pace of expansion in 2015 meant that the retailer ended the year with 459 stores, of which 403 were in Catalonia and 56 in Madrid and Zona Centro. Finally, the retailer said that it had already opened seven stores in 2016, with seven more set to be opened in April, as it aims to add more than 20 stores during the year.

Covirán sees gross sales reach €1.2 bn in 2015…

Announcing its 2015 results, cooperative Covirán has said that its gross sales under banner reached €1.215 bn during the year, with it generating €1.114 bn in Spain and €101m in Portugal. Covirán grew total gross sales by 4% in the year, with comparable sales rising by 2.1%. At the end of the 2015 financial year, Covirán said its partners operated 2,549 supermarkets under its banner, with 2,361 in Spain and 188 in Portugal, and a further 60 set to be opened across both countries in 2016. Elsewhere, Covirán said that it would invest in 2016 and 2017 in its logistics platform in order to open a distribution centre in the Canary Islands in April 2016, with another to be added near Barcelona in 2017.

…With its chief executive forecasting further market concentration

Echoing the sentiment of other retailers, and following on from the company’s results statement, Covirán’s chief executive, Luis Osuna, said that he believed there was likely to be a further concentration of the grocery market in Spain. Osuna said that as a result of this and the lack of a stable government, which was holding back economic growth and limiting demand, competition would ‘remain very high… and price will remain key’.