Spain Ahorramás Sees Strong Growth in 2016

Gildas Aitamer (Senior Retail Analyst)
04 April 2017
Spanish retailer Ahorramás has revealed its financial results for the year, which fell below initial expectations due to hampered store network progression. Even so, the retailer published sales up 4.32% in 2016 thanks to positive same-store revenues and the opening of eight new supermarkets.
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Gildas Aitamer (Senior Retail Analyst)
Gildas Aitamer (Senior Retail Analyst)

Opinion Cautiously Optimistic

04 April 2017
We believe Ahorramás is benefiting from its recent strategy over the past few years, which has involved investment in back office efficiencies and reasserting its cost-control strategy. Based in and around the densely populated and affluent capital city of Madrid, the retailer has increasingly needed to fend off giants (such as Carrefour) developing their urban footprint, while remaining under pressure from price focused market leader Mercadona. This may explain the retailer's cautious sales forecast, showing an anticipated growth deceleration to 2.7% for 2017. 

To find its niche, we expect Ahorramás intends to remain cost-focused while maintaining a deep assortment of branded goods on its shelves. Unwilling to enter the nascent Spanish grocery e-commerce channel due to profitability concerns, the retailer is nonetheless piloting alternatives to retain its clientele. It recently introduced a collection locker located in a business district, allowing shoppers to do their grocery shopping during their lunch break and leave the items in a refrigerated locker to collect on their way home. 
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