Italian consumer cooperative Coop Alleanza 3.0 plans to invest €760 million over the next five years in order to achieve continued growth.
The initiative is expected to boost its revenues from €5.6 billion in 2022 to €6.3 billion in 2027. It hopes to break even in 2024, and turn a €70-million profit by the end of the period.
An estimated €600 million have been earmarked for the renovation of 172 stores, including 64 superstores, and the opening of 20 outlets, including two superstores, mainly of the proximity format.
A new automated logistics plant will be opened in Anzola dell'Emilia near Bologna, which will handle 50% of packaged products.
Also planned is increased convergence of the physical and digital sales channels by rolling out a single multi-device app that will substitute the existing different sites and apps.
In addition, around €130 million will be allocated to defend the purchasing power of members.
On the sales front, work will be done on shop formats, with the aim of increasing sales from 78.8% to 83%. It also aims to boost the sales of Coop private label products to 40%.
By 2027, sales of Coop-branded products should rise to €6.3 billion, from €5.6 billion in 2022, while EBITDA from retail operations is expected to exceed €170 million (€11 million in 2022).
The investment plan was announced after the Bologna-based cooperative closed 2022 in the red, reporting a loss of €132 million, mainly due to increasing energy costs and measures to reduce the impact of inflation on members and consumers.
The new strategy is already paying off, as Coop Alleanza 3.0 reported a sales growth of 1% in volume and 6% in value in the first quarter, bucking the the average market trend, which shows that sales declined by 4% in volume.