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Spain's Eroski To Accelerate Remodelling Of Stores In Central-South Region: AGM

Published on Jun 22 2018 11:27 AM in Retail tagged: Trending Posts / Eroski / Contigo

Spain's Eroski To Accelerate Remodelling Of Stores In Central-South Region: AGM

Spanish cooperative Eroski is accelerating the remodelling of its commercial network in the south-central region of Spain, including the Balearic Islands and Catalonia, in order to improve competitiveness in the region.

The company announced its plans to transform the stores into its 'contigo' (with you) model over the next few months at its annual general meeting on Wednesday.

Contigo Format

The 'contigo' model emphasises a commitment to local products and seasonal fresh produce. It also encourages a healthier lifestyle with offerings of fresh, nutritional food ranges with lower fat, sugar, and salt, as well as organic and diet lines, the company said.

The retailer recently completed the refurbishment of its stores in the Basque country, Navarra, Aragón, Cantabria and La Rioja. Eroski said the revamp has helped consolidate its position in that region, gaining 0.4 points market share in the last year (to 19%).

It plans to open five more Eroski stores in the next year, having opened four in the last 12 months in the Basque Country.

The company will also pursue a multi-channel proposal in the region, that 'seeks to serve the customer where, how and when they want' through different store formats, online channels, and collection models of online purchases (of which there are currently twenty).

South-Central Region

In the south-central region of Spain, Eroski has remodelled four hypermarkets in Albacete, Elche, Malaga and Tarragona and built a next-generation hypermarket in the contigo format in Melilla. This equalled a combined investment of 10 million between Eroski and its franchisees.

In the Balearic Islands alone, Eroski plans to end the year with 65 revamped supermarkets and look at remodelling 20 other stores in 2019.

More than 40% of sales made in that region are in new-generation stores.

Seven more hypermarkets, with more than 980,000 Eroski Club Card members, will be renovated in the future.

Subsidiary Progress

Subsidiary supermarket chain Caprabo will also initialise a plan that will transform its value chain over the next few years, from logistics processes to stores and customer relationships, in order to increase competitiveness, provide improved value for money and enhance its 'bond' with customers.

Caprabo closed 2017 with 320 supermarkets, and its strategy will include a remodelling plan to a new format, as well as promotion of its franchised stores.

Eroski also highlighted distributor Vegalsa-Eroski, which is now the leader of distribution in Galicia, with a market share of 16%. During the past year, it opened four new stores and converted five other supermarkets to the contigo model, with more than €18 million spent in investment.

Commitment To Wellbeing

At the meeting, the president also reiterated Eroski's commitment to promoting a healthier and more balanced diet, including food security initiatives, promotion of local products, and education about health and wellbeing.

The president of the governing council of Eroski, Leire Mugerza, said, "Eroski's commitments in relation to health and sustainability are an updated expression of its contribution as a consumer cooperative and establish the axes of evolution of the commercial model "contigo" to continue depending on the preference of consumers."

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.

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