The General Shareholders Meeting of Grupo IFA –the food and general merchandise retail group in Spain- has produced the financial results for 2017. The company has achieved a consolidated turnover of €17 billion in the Spanish and Portuguese markets. Consolidated sales in Spain total €12,35 billion, an increase of +4.7% on the previous year, thus, leading the industry’s current trend. Grupo IFA's market share in value for the supermarket channel has increased a percentage point over the last five years and stands at 15,8% at the year-end date.
Grupo IFA closed 2017 with a total trade surface area of 4.4 million square meters over 7,025 stores. The Group thus consolidates its leading position as the top retail group by retail surface area in Spain and Portugal. The national market comprises a network of 6,046 stores over a retail surface area of 3,7 million square meters, which accounts for a market share by surface area of 18.5% and 30.7% in the retail and wholesale channels respectively.
Figures of centralized payment related to purchases that go through the Buying Center grew in excess of 3% totaling €5,81 billion, delivering IFA Retails, S.A. a net turnover of €732 million, which accounts for a 5,8% increase, similar to last year’s.
Grupo IFA’s business model, which was created 50 years ago around fresh produce and consumer choice is still in force nowadays and is proving capable of adjusting to current consumer needs and preferences. The lack of time experienced by the younger generations and the demand for convenience of older ones reinforce the commitment that the Group affiliates made to proximity. We are leaders in Madrid, Barcelona and towns with a population under 20,000 inhabitants. This is proof of both the reach of our retail network and of the ability to gain access to customers.
In 2017, Grupo IFA’s affiliates have continued to put a strong emphasis on their fresh produce range - which accounts for a third of the Spanish shopping basket – in an effort to respond to a fresher and healthier approach to eating. Fresh produce accounted for 44% of the Group’s total sales and supermarkets concentrated 17.3% of their spending on this category.
Lastly, product range is another key drive for consumers when choosing retailers. In this respect, IFA business strategy promotes the growth of its affiliates through the manufacturer’s own brands, which account for 81% of the product range compared to a 64% of market average. Thanks to IFA’s commitment to brands and innovation, manufacturer’s brands account for a market share of 23,4% in the supermarket channel. In an effort to further strengthen brand alliances, Grupo IFA reached an agreement with Gruppo VéGé for them to become part of an international joint purchasing venture which will allow the Italian company a turnover increase of up to €23 billion as well as an access to a retail network of 9,500 stores throughout Spain, Portugal and Italy. Thanks to the joint management of these three markets, the affiliate companies will be able to optimize their purchasing conditions, to improve their competitive stance and to promote an added value commercial offer for the final customer.
At the General Shareholders Meeting, Grupo IFA’s Managing Director, Juan Morales, has stressed that “2017 results prove the validity and success of a business model that is unique in Europe due to the fact that it is carried out by leading regional operators. Our sustained growth, even during the years of the financial crisis, makes us feel optimistic and prepared for the future. The reality of the regional operators that currently account for 40% of the trade surface area of Grupo IFA must be acknowledged. We will continue to strengthen our alliance with manufacturers as a result of our commitment to innovation and to free choice of brands for our consumers. We will strive to enhance the value of the business in the markets we operate, as it remains crucial for the industry these days. Our 2020 strategic plan will decisively work to achieve these goals as well as to improve the competitive standing of our affiliates in the face of the challenges over the next 50 years.
Santos Ortega
Email: santos@santosortega.esTel.: +34 699 976 431