Italy's Conad Merges Cooperatives To Form Conad Centro Sud
Conad PAC 2000A and Conad Sicilia have agreed to merge to form Conad Centro Sud, a group with an aggregate turnover of €4.5 billion and a market share of 22.5%, according to a report in distribuzionemoderna.info.
The move is part of Conad's process of rationalising a number of its operational units to increase market efficiency.
The merger represents the second phase of the rationalisation process, which will see seven cooperatives merging to create four bigger companies.
In June 2019, the board of directors of Nordiconad and Conad del Tirreno approved the merger of their respective organisations, resulting in the establishment of Conad Nord Ovest.
According to Conad CEO, Francesco Pugliese, the mergers will "create synergies to make the typical Conad business model even more reliable".
Conad Centro Sud will comprise 1,052 members, over 20,000 employees, and around 1,468 outlets, in various formats including hypermarkets, superstores, supermarkets, and local stores.
Scheduled to begin operations on 1 January 2020, the new company is expected to generate a turnover of over €5.5 billion.
It has pledged to collaborate with nearly 3,000 local suppliers, to drive business worth almost €1.5 billion.
Once operational, Conad Centro Sud will enjoy a leadership position in Central and Southern Italy in the regions of Umbria, Lazio, Campania, Calabria, and Sicily.
Its head office will be based in Perugia, with branches in Partinico and Modica in Sicily.
© 2019 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.