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Retail

Conad Consolidates Leadership Position In Italy

By Branislav Pekic
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Conad Consolidates Leadership Position In Italy

Conad has confirmed its leadership position in the large-scale retail sector in Italy, recording total sales of €18.45 billion in 2022, up +8.5% on the previous year.

The supermarket chain's market share has remained above 15%, with a 4.4% growth in sales on a like-for-like network basis.

Highlights included 8.6% growth in specialty store concepts (pharmacies, opticians, pet store and fuel distribution), 4.7% growth of its Spazio Conad stores and the return to growth (+5.5%) of proximity channels after a 2021 decline.

Conad’s private label brands reported sales of €5.4 billion, up 12.6% in value compared to 2021.

Commenting on its performance, Francesco Pugliese highlighted that, over the past year, Conad absorbed a significant portion of price increases from suppliers, thus eroding its margins.

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However, he added that the retailer has no more room to accept further increases, and is calling for action to ensure that prices can remain low for shoppers.

Read More: Italy’s Conad Opens First TuDay Conad Store

Investment Strategy

Despite the challenging economic and social context, Conad confirmed its €2.08 billion investment plan for the period 2022 to 2024.

Of this amount, €701 million will be used in 2023 to support the four strategic pillars of the brand: channeling, digitalisation, focus on Conad-branded products, and sustainability.

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According to Pugliese, Conad achieved expected levels of growth during 2022 as a result of a three-year investment plan for the renewal of the sales network and a move towards digitalisation.

Highlights included the launch of the Hey Conad e-commerce platform and additional online shopping services, as well as the growth and expansion of the private label offer.

Conad operates 3,928 outlets of various sizes and formats throughout Italy.

© 2022 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.

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