Italy: investment in online and private labels

Lucy Bellotti
Retail Analyst
@RetailAnalysis

Date : 17 November 2020

Discounter MD has increased its turnover by 16% and has highlighted its key investment areas. Meanwhile, Penny has partnered with ReStore to launch an online trial, under the brand Penny a Casa. Separately, SPAR Italy has reduced its use sugar in its DESPA-branded fruit juices and nectars.

MD increases turnover by 16%

MD recorded an increase in turnover of 16% in H1 2020. The retailer claims it is investing €250m in the 2020/21 timeframe, of which €6m was used to implement safety measures due to COVID-19. During 2020, MD added 17 stores (company-owned and franchised) and plans to open a further 15 by the end of 2020.

The discounter claims its online sales increased by 70% during January to May 2020. MD has invested resources in digital and smart payments, which the retailer will continue to invest in going forward.

Penny Italia’s pilot grocery delivery service

Rewe-owned Penny has revealed it has started testing online food deliveries in Milan and Catania, under the brand Penny a Casa. The retailer has partnered with ReStore, with the latter company picking and delivering orders, while also managing the website.

Orders over €50 will be delivered, using electric vehicles, free of charge. The service will be expanded if the trial is successful. Penny’s online store will initially offer shoppers a range of 2,000 products, but the retailer plans to offer different regional products in the future.

SPAR Italy reduces sugar

SPAR Italy announced a significant reduction in sugar for its DESPAR-branded fruit juices and nectars. The retailer has relaunched both products with new packaging and a total reduction of 105 tonnes of sugar.

Lucio Fochesato, DEPSAR Italia’s general manager claims ‘healthy nutrition is based on conscious shopping choices, and this is exactly what we want to offer our customers: more nutritionally balanced products and information, to help them follow a balanced diet.’

SPAR Italy partnered with nutritionists from the Department of Food Science and Pharmaceuticals at the University of Parma to analyse the products and make the changes. DESPAR fruit juices and nectar were chosen because of their everyday low price and as they are considered a daily essential, helping shoppers make better choices every day.

Separately, SPAR Italy has expanded its green private label range, more information click here. 

 

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