Caprabo to launch second own label
this year under the Alcosto name, reflecting its recent acquisition of the supermarket chain of
the same name.
The acquisition will in fact lead to a number of changes at the group, not least price reductions for more than 2,000 branded products made possible by the cost savings and improved purchasing power generated by the Alcosto takeover.
The roll out of the Alcosto label in every Caprabo store was begun in the last week of January. The label currently consists of 130 product lines, all of which are said to be 'essential' every day products sold at a low price point. The range complements Caprabo's eponymous own label which comprises more than 1,000 upmarket products.
Both the own label roll out and the cost cutting exercise will be supported by a major advertising campaign.
Buying Madrid-based Alcosto was one of three major moves carried out by Caprabo last year in a bid to strengthen its position in a Spanish retail market dominated by foreign players. The other two were the refinancing of its long term debt and the sale of a minority stake to Spanish bank La Caixa, both of which freed up significant amounts of cash for future developments.
And Caprabo's business is also highly cash generative. The group ended 2003 with sales of €2.4 billion, a 17.4 per cent increase on the previous year. Caprabo now has 580 supermarkets and 30 petrol stations, making it the leading supermarket operator in Catalonia, Madrid and Navarra.
Caprabo said that it would also extend its Lowest Price Guaranteed campaign to more than 500 branded products this year. The campaign pledges to refund shoppers 10 times the difference if they can find the same item cheaper in any other store.
The campaign will also be rolled out to capraboacasa.com, the company's online shopping portal which is the biggest in Spain with sales of more than €26.6 million and an increase of 31 per cent on the previous year. In contrast, larger rival Alcampo scrapped its online shopping arm in 2002 and just last week Carrefour was reported to be seeking a buyer for its Internet shopping arm in both Spain and France.
