Italian food emporium Eataly Distribuzione, which operates the Eataly franchise worldwide, has reported a loss of €11 million in 2016, compared to a profit of €713,000 the previous year.
Revenues of its Italian and foreign units dropped by €32 million, to €178.8 million, with EBITDA down to €14,000, compared to €13 million in 2015, reports Il Sole 24 Ore.
The company says that the negative trend is due to a reduction in sales and a strong increase in competition. However, it is confident that, in the current fiscal year, 'the organic growth and the opening-up of new stores, coupled with greater efficiency,' will enable the company to return to its usual levels of profitability.
Eataly’s store network consists of 38 outlets, 16 of which are located abroad. The company’s strategy is to open three to five new stores per year.
Last year, Eataly opened its second store in New York, as well as stores in Boston, Munich, Copenhagen, Trento, and three stores in the UAE. In 2017, stores have been opened in Trieste and Moscow, with Los Angeles and Stockholm to follow.
Eataly Distribuzione is controlled by Eataly, whose shareholders are Eatinvest (controlled by the Farinetti family), with 58%, ClubItaly and the Carlo Alberto Company, with 20% each, and Coop Alleanza 3.0, with 1.3%.
© 2017 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.