Conad Starts Rationalisation Process With Nordiconad, Conad del Tirreno Merger
Italian retailer Conad has started the process of rationalising a number of its operational units to increase market efficiency.
The board of directors of Nordiconad and Conad del Tirreno have approved the merger of their respective organisations, which will result in the establishment of Conad Nord Ovest, consisting of 587 stores, net assets of €628 million and a turnover of €4 billion.
The new company, which will be operational from 1 October, will be based in Pistoia and Modena and will be active in the Piedmont, Valle d’Aosta, Liguria, Emilia-Romagna (Modena, Bologna and Ferrara), Tuscany, Lazio (Rome and Viterbo), Lombardy (Mantua) and Sardinia regions.
The process, which will result in the reduction of the existing seven regional Conad cooperatives to four will continue over the next few months.
The news comes as four other Conad regional units have reported a positive performance in 2018, after results recently published by Conad Sicilia and CIA-Conad.
These include Conad Adriatico, which ended 2018 with a turnover of €1.2 billion (+15.5% compared to 2017), boosting its presence in all markets (Puglia, Basilicata, Marche, Molise, Abruzzo, as well as in Albania and Kosovo).
Elsewhere, Conad Centro Nord reported 2018 sales of €1.33 billion (+2.1%) and a consolidated net profit of €17.8 million, while Nordiconad closed 2018 with a turnover of €1.3 billion (+1.81%), boosting its position especially in the Piedmont region.
Finally, Conad del Tirreno ended 2018 with revenues of €2.54 billion (+2.2%) and a net profit of €30 million. The cooperative increased its leadership in Sardinia (19% market share), Lazio (24%, together with Conad’s PAC 2000A) and Tuscany (16%).
© 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