Italy: expansion and investment

Date : 14 June 2018

As Crai and its affiliates launch new banners in the country, members of Conad set out their investment plans and Despar and Unes investigate private label opportunities, we round up news from the country.

Leader Price launches in Italy…

Crai, in conjunction with France-based Casino, has opened the first Leader Price stores in Italy, in Borgo Satollo, Como and Voghera. The three sites are part of the retailer’s aim to operate 20 by the end of 2018 and 100 by 2023. Crai has said three sizes of store will be opened: 300 sq. m, 600 sq. m, and more than 800 sq. m and focus on three areas: quality, low prices and offering a convenient shopping experience. The stores, which will be a mixture of company owned and franchised, will stock about 80% private label products.

…As Crai affiliate adds a new drugstore banner

Distribuzione Moderna has reported that a retailer affiliated to Crai, Ingromarket, has launched a new drugstore banner, Shuki. The store’s range covers about 9,000 SKU’s across home care, personal care and pet care. The four stores – in Naples, Salerno (two) and Teverola – have an average selling space of 250 sq. m and are aimed at adding to the retailer’s mix of proximity stores.

Conad Centro Nord to invest €52m in store estate…

Conad Centro Nord will spend €52m to open nine stores. The stores will add to the cooperative’s estate, of 240 stores at the end of 2017 across: 37 Conad Superstore, 101 Conad, 43 Conad City, 49 Margherita, five Todis stores, three Sapori & Dintorni and two PetStore. Commenting on the investment programme, Conad Centro Nord’s general manager, Ivano Ferrarini, said: “We are investing in what we do best, on the Conad brand and on our business partners… The point of sale is a place of relationship and an opportunity to get to know the quality and convenience of the Conad product.

…As Conad Adriatico aims to open 36 stores in 2018

Meanwhile Conad Adriatico has said it will invest €20m to open 36 new stores in 2018. The investment comes as part of its 2017 to 2020 strategic development plan, under which it has said it will spend €115.4m. Conad Adriatico finished 2017 with 408 stores, after it added 31 new sites as part of a €49m investment programme. Conad Adriatico’s store estate at the end of 2017 was made up of seven Conad Hypermarket, five Conad Superstore, 161 Conad, 123 Conad City, 35 Margherita, 55 Todis, one PetStore and three petrol forecourts, amongst others.

Despar to maintain strategic focus in 2018

As part of an interview in GDO Week, Despar Italy’s president, Paul Klotz, set out the retailer’s aims for the year ahead. Klotz said the company would continue to focus on opening stores, which will be 2,500 sq. m or less, updating existing stores and innovating, especially in relation to private label ranges. Despar is aiming to add 280 new private label SKUs in 2018 as part of an aim to grow its own ranges’ sales by 3.5% during the year and taking their total share of sales above 19%, from 18.6% in 2017.

Klotz said Despar would benefit from changing market conditions: shoppers buying little and often, spending less time in-store, living along and remaining single for longer, as its stores were in local neighbourhoods and of the ‘right size’. Expansion would be aided by acquisitions, but only to fill in geographical gaps and where the stores were of the correct size.

Unes adds new private label range

Unes has launched Green Oasis Casa, a premium private label range of homecare-focused sustainable products. Bottles are made from recycled packaging, while active ingredients are completely and quickly biodegradable.