Spanish supermarket chain Eroski has posted year-on-year sales growth of 8.7% in the third quarter of its financial year, to €3.86 billion.
Investment In Promotions
Eroski attributed this growth to promotional and price containment efforts made by the group since the end of 2021. The initiative also resulted in market share gains and greater consumer appreciation, it noted.
EBITDA jumped by more than 26%, to €254.5 million, from €201.56 million in the same period last year.
A successful €500 million bond issue and an early syndicated €19 million debt repayment strengthened the company’s financial stability during the quarter, the company added.
In the first nine months, the retail group bolstered its market presence by remodelling 35 establishments in its store network and opening 74 supermarkets.
Commenting on its performance, Rosa Carabel, chief executive of Eroski, said, “We continue to consolidate our growth with a significant increase in food sales and market share, boosting our leadership position in the northern area and placing [us] as the fourth operator in the Spanish market.
“Our new pricing policy is a hit with consumers, driving income growth across all store formats.”
Eroski is one of the top cooperative distribution groups in Spain and a leading name in the Northern Spanish market, with shares of 37% in the Basque Country, 19% in Galicia, 28% in Navarra, and 21% in the Balearic Islands.
As of the end of the third quarter, its commercial network comprised 1,509 establishments, including supermarkets, hypermarkets and cash-and-carry outlets, and an online supermarket, as well as petrol stations, sporting-goods stores, and other non-food businesses.