In 2023, Covirán broke its record for gross sales under the banner with 1,843.7 million euros, 3.2% more than the previous year, also increasing its profitability per square meter after having launched a plan to optimize the commercial network , with the closure of inefficient points of sale. Also present in Portugal, the cooperative network is present in 1,293 Spanish municipalities, in many of them being the only option
Last year you closed in record numbers, how is this year evolving?
It is true that last year was very good and that we achieved record turnover figures, exceeding pre-pandemic levels. This year we are facing a drop in volume consumption, especially after the summer. However, at a constant surface we are doing very well. In the new stores we are also having positive numbers. Breaking a record every year is not easy, but we will have to wait and see how Christmas performs. In profits we will be in the same line as last year. Our main objective as a cooperative is not profit, but to reinvest in our members.
They made a network adjustment in 2023, is it finished?
No, not yet. As a cooperative we have one thing engraved in our DNA and that is that we have to help our members so that their stores not only have a stable present, but also a promising future. As a consequence of the changes that occur in the market, there are stores that are no longer efficient. That is why we are constantly analyzing the market to advise possible changes in location or openings. We ended the year with 2,209 partners managing 2,530 stores in Spain and Portugal. We are moving from a self-employment model to another in which more and more partners have more than one store. The generational change is complicated.
“We have 26 logistics centers, three of them in Portugal, to reach every corner between three and six times a week”
How does Covirán want to differentiate itself from the rest?
We have several differentiating factors such as proximity or total differentiation for fresh products, in addition to being very strong in fruits and vegetables thanks to the seven purchasing centers that we have and with which we work with local products. Our model is one partner, one vote. Partners are our greatest competitive value, they are going to fight for your business. We understand that at Covirán the member is the owner of his business and his future, but we also provide them with the strength of the cooperative. We have now launched a membership recruitment plan.
Have you analyzed any other markets besides Spain and Portugal?
We don’t rule out anything. In fact, we are in Cape Verde with a store and in Equatorial Guinea, through an agreement with a partner, in addition to also being in Gibraltar. In any case, in the short term our objective is to focus on Spain and Portugal, where we have been operating for 13 years and have 250 stores.
In which areas is there still potential to open stores?
We believe that there continues to be potential and business opportunities throughout Spain with the proximity model. There are small business owners with one, two or three stores, to whom we can offer to be under our umbrella. There are independent freelancers or those who work with a franchise with another brand.
How do you manage logistics? Because they have to reach everywhere…
Yes, in fact we are the only purchasing option in 322 municipalities with less than 2,000 inhabitants. We distribute with a frequency of between three and six days per week thanks to 26 logistics centers, three of them in Portugal. We have three mother platforms in Granada, Seville and Madrid and the rest are satellite centers. Our capillary network allows us to reach any corner with local products. We have more stores than anyone else in the Iberian Peninsula and we are also leading the openings. In 2024, with the final months remaining, we will open around 130 establishments, in line with last year. Of them, between 70 and 80% will be new additions to the cooperative network.
What do you offer members who want to join the cooperative?
First, as I said, being owners of their own business and operating under a very strong brand such as Covirán, with a great commitment to fresh products. We have also launched the Covirán Contigo project, in which we offer both financial help to modernize stores, improve the shopping experience and standardize our image, as well as management support to develop a business model and have a future. We want to be stronger and stronger.
“Our business model is based on proximity and a very strong commitment to fresh products, in addition to offering a variety of brands”
Do you sell online?
Not in an organized way. It is very difficult because we have a supply of local products, with great capillarity and it would be very complicated, although we do offer the home delivery service on an individualized basis. We are prepared to launch online sales, it is a project that can be launched later, but not now. It still has very low penetration. Spain is the country in Europe with the highest commercial density and everyone has a store nearby.
What investments are planned?
We are constantly analyzing what investments are needed. We are investing, for example, in digitalization, in transportation and in logistics infrastructure. We are implementing a new comprehensive management and planning system for warehouses with good results. Last year we invested 5.45 million, 25% more, and this year we are going to increase it by another 20%.
“Our members are owners of their business and their future, they are the owners of the cooperative and more and more have more than one store”
How much does your white label weigh?
We continue to bet on the manufacturer’s brand. We understand that success lies in variety and our clients look for top brands. Our own brand weighs between 25 and 27% and we feel comfortable with that ratio. We bet more on the quality/price ratio than just on an economic issue.
How have the rise in costs affected you?
We have made a very important effort because it has never been possible to transfer all the increase we have had in costs to the sales price. In any case, fortunately, inflation is now under control.
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