Italy's Conad Adriatico Earmarks €170m For Investments
Italian retail cooperative Conad Adriatico has earmarked €170.5 million for investments between now and 2023.
The retailer is aiming to boost its market share (18.3% in 2020), especially in the areas where it is less well established, such as the northern part of the Marche region and the province of Bari.
The investments will be used for the opening of new stores (€108.5 million), renovations (€37.3 million), modernisation work (€19.3 million) and investment in new technologies and IT systems (€5.4 million).
During 2021, Conad Adriatico plans to invest €49.7 million in its operations, most of which (€27 million) will go towards new openings. This will include new Conad, Conad City and Todis stores, as well as work on the integration of the former Auchan and Finiper stores.
In the first half of the year, 26 store refurbishments were completed and four new points of sale were opened, three of which were the result of the acquisition of seven ex-Dico outlets in Puglia.
Since July, work has begun on the opening of a further 14 points of sale and another 16 renovations.
Despite forecasts of a slow and laborious return to normality, according to IRIR estimates, results up to June 2021 reveal a positive trend for Conad Adriatico (+9.7%).
In the Marche region, where Conad Adriatico has a 21.9% market share, six refurbishments and two modernisation projects were completed in H1.
In Abruzzo, where it is the market leader, with a 33.8% share, four refurbishments were completed and one store was modernised. In Molise, where Conad Adriatico is also the market leader, with a 21% share, no investments are planned for the current year.
In Puglia (11.4% market share), the cooperative has opened four new stores (three of the Todis and one of the Conad banner), while no investments are planned for this year in Basilicata (4.1% share).
Conad Adriatico’s network consists of 24 Spazio Conad, 17 Conad Superstore, 168 Conad, 124 Conad City, 31 Margherita Conad, 58 Todis and 17 L’Alimentare points of sale. These figures include the 36 stores Conad Adriatico manages in Albania and Kosovo.
Conad Adriatico ended 2020 with a turnover of €1.72 billion (+19.6%) and a 18.3% market share in the five regions (+1.3% on 2019). The forecast for this year is for turnover of €1.81 billion (+5.6%).
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine