Conad’s private label sales reach €3.5bn

Date : 29 January 2019

Italy-based Conad saw its private label ranges generate a turnover of €3.5bn in 2018. The turnover was up 7% year-on-year and accounted for a quarter of Conad’s total sales.

Turnover increased by 3% to €13.4bn…

Conad said that its total turnover rose by 3% to €13.4bn in 2018, underlining the outperformance of its private label ranges. It also said it had a 22.4% share of the Italian grocery market at the end of 2018. CEO Francesco Pugliese said the performance was better than expected, considering the “worrying decline in consumption” in the country.

…Attributed to private label growth

The retailer attributes its performance to the development of its sales network and the success of its private label offer. Conad said its private label offer accounted for over 50% of the growth in Italy’s private label segment. An estimated 8.6m families frequently purchase Conad-branded products.

In 2018, the retailer spent €38m on marketing and communication for its private label brands. It also tried to optimise the production process of its ranges at four main production facilities. It said its private label products are now produced in a more environmentally-friendly way, which has contributed to a 9.5% decrease in carbon emissions.

Three levers for private label growth

Conad’s private label range comprises more than 3,600 SKUs, of which 1,400 were created or modified in 2018. New lines include Conad Alimentum, Conad PiacerSi, Conad Essentiae and Conad Baby.

Francesco Avanzini, Conad’s general manager, said it would continue to use three strategic levers to grow its private label ranges: by focusing on continuous convenience, with its Bassi & Fissi brand; on premium, with Sapori & Dintorni and Verso Natura; and on emerging shopper needs, like health and well-being, with PiacereSi.

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