Jerónimo Martins To Invest Up To €650 Million In 2016
Portuguese retail group Jerónimo Martins (JM) is planning to invest €550-600 million this year in order to achieve sales growth.
Polish supermarket chain Biedronka, which accounted for 67 per cent of sales in 2015, will receive about 45 per cent of the total.
In Portugal, Pingo Doce will receive €100 million, which will be used for the opening of new stores, refurbishing existing ones, and the construction of new warehouses.
In view of the successful partnership between Pingo Doce and BP, the group plans to open five more convenience stores, in addition to the existing two.
JM forecasts that the retail food sector both in Poland and Portugal will continue to be "very competitive and with strong promotional activity", while "food inflation should remain at very low levels".
The retailer will invest an additional €100 million in Colombia for the opening of 70-100 Ara stores this year and to enter a third region of the country. According to the president of the Board and CEO of JM, Pedro Soares dos Santos, there are also acquisition opportunities in the South American country.
JM also announced it has invested around €1 million in Best Farmers, the first livestock project of the group, with 1,000 herds of Angus cattle that will supply the network of 400 Pingo Doce supermarkets, and 40 Recheio cash & carry stores.
Finally, the retailer is expecting permission to invest €25 million in a new plant for dairy product supplier Serraleite, which it acquired in 2015.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.