Despite an expected slowdown in the economy and rising prices, Pam Panorama is planning to invest €100 million next year in expanding its business.
The Italian supermarket chain has earmarked €60 million for a new logistics platform in Alessandria that will commence operations in the next 18 months.
Another €45 million will be allocated to the redevelopment of stores and to open 40 direct and franchised supermarkets in Northern Italy, in Rome and Campania.
This is the second round of investments announced by the retailer, after a €100 million spent this year.
Looking Ahead
Pam Panorama expects to close 2023 with revenues of €1.9 billion and an EBITDA of €26 million.
The company expects 2024 to be a challenging year, with slow economic growth and rising prices. However, it still expects to grow its sales by 5%, to €2 billion, and improve its margins.
For 2025, Pam Panorama is aiming for a value share of 30% for its own-brand products against the current 23%. The focus will be on both the premium offering and the low end of the market.
Elsewhere, the meat and fish department, bakery, and delicatessen will be strengthened, with a special focus on home-produced ready meals 'to be rolled out to the entire sales network.'
Partnerships And Innovation
Pam Panorama is also working to reach partnerships with small local companies such as Arimondo, Borello, and Retail Pro. It recently partnered with Belluno-based Acil, which owns around ten stores and will start selling Pam brand products.
Pam Panorama is also investing in innovation and digital initiatives, including a machine learning system for managing promotional space and an AI-based demand forecasting system to automate reordering processes and streamline supermarket service.
The company is also developing a checkout-free store in Milan, set to open next year, that will function on the model of Walmart and Amazon. Control will be entrusted to a network of AI-based sensors, so customers can shop and pay without stopping at the checkout.
Pam Panorama is part of the Pam Group, a major player in the Italian large-scale retail trade industry. The company operates over 1,000 stores under various banners – Pam, Panorama, Pam Local, and Pam City – with 9,800 employees, and 750,000 square metres of retail space.
The Pam Group is expected to close the year with consolidated revenue of €3.5 billion (+12.9%) and a market share of 3%.
