With an abundance of new private label products in key categories, which have Delhaize Ahold Group brands, greater promotion of the franchise program, internal restructuring and investments totalling 181 million euros over the next three years in stores, refrigerators and logistics, the management of AB Vassilopoulos will attempt to make a comeback claiming something better than the stagnant image of the last few years.
It is a big bet, especially as the chain registered losses in 2022, as CEO Mr. Nikos Lavidas admitted, because of the "false impression that it is an expensive chain." The Lavida administration, who recently completed a year at the "helm" of the second - according to others, the third - most significant supermarket chain- prioritised ending this impession.
That is why, as you explained, the chain chose not to protect its profitability at all costs in a rather difficult year, such as last year, in which the rise in energy costs and the barrage of price increases combined with the restrictive measures imposed by the government by removing whatever flexibility the chains might have ultimately led to a negative bottom line.
Given this and with the aim of the company "getting ahead" through its investment plan, the company proceeded to conclude a bond loan from the parent company for a total amount of 70 million euros.
The chain's three-year investment plan reaches 181 million euros and mainly concerns new stores, equipment renewal and the promotion of the franchise program. The project envisages the establishment of 198 new stores, 16 corporate and 182 franchises.
For this year alone, the investment program was set at 64.5 million euros, foreseeing, among other things, the opening of six company stores, four of which are already operational.
The 3,000 m2 store in Marousi is expected to open in November, while the first supermarket in Mount Athos will open by the year's end! In agreement with the monastic community, the AB store will be in Karyes, and the codebook will be adapted with an emphasis on local products, too!
It is recalled that the network of AB Vassilopoulos currently has 636 stores, of which 242 are franchises, and 14 are cash & carry.
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