By George Lampiris
Investments in logistics facilities for the service of its retail network as a whole have been made and completed by the Fourlis group in the last period of time.
The cost amounted to 18 million euros, of which 12 million euros relate to the logistics center of Inofyta, which serves the distribution on behalf of the Intersport and The Athlete’s Foot store network, while the remaining 6 million relate to the new IKEA storage and distribution center, which is located in the area of ​​Schimatari, according to the president of the group, Vassilis Fourlis.
The first Holland & Barrett in the retail park of Piraeus
The logistics center of Inofyta will also serve the network of wellness and food stores, Holland & Barrett, which the group is going to start developing in Greece from next autumn. It is noted that based on the investment planning of the Fourlis group, the expansion of Holland & Barrett envisages a total of 100 stores over a five-year period, in Greece, Cyprus, Bulgaria and Romania, countries in which the group already has a presence with other commercial signals managed (IKEA, Intersport, The Athlete’s Foot). The first Holland & Barrett store will be created in the retail park on Piraeus Street, owned by the group’s subsidiary, Trade Estates AEEAP.
The capacity of the storage and distribution center of Inofyta amounts to 40,000 pieces per day, while the total area is 25,000 sq.m. Additional 10,000 sq.m. Unstructured surfaces are available to create additional facilities. This logistics center has 5 order collection stations, while it employs a total of 70 staff.
At 48,000 sq.m. the IKEA distribution center in Schimatari
Regarding the IKEA distribution center in Schimatari, another investment is currently underway, which aims to serve both the e-commerce channel and the smaller stores of the network. The specific facilities will be in full operation from next September with a total available storage area of ​​48,000 sq.m. being the largest logistics center in Greece.
Rising costs and network growth pushed the “bottom lines” in the quarter
In the first quarter of the year, IKEA presented sales of 61.8 million euros, increased by 35.2% compared to the first quarter of 2021 (45.7 million euros). Sales in Greece increased by 57.8%, while in other countries sales increased by 12.1%. EBITDA stood at 1.4 million compared to 2.6 million euros in the first quarter of 2021. Losses before taxes amounted to 2.4 million euros.
Respectively in the same period the sales of sports goods amounted to 34.6 million euros, showing an increase of 15.7% compared to the first quarter of 2021 (29.9 million euros). In Greece, sales increased by 31.0%, while in other countries there was an average increase of 1.5% compared to the first quarter of 2021. At EBITDA level, the sports sector showed losses of 1.5 million euros against profits of 0.4 million in the first quarter of 2021. Losses before taxes amounted to 4.4 million.
According to group sources at Capital.gr, the losses are due, among other things, to the increased energy costs. At the same time the market according to the same sources was numb during the reporting period, while the group shows a larger network of stores and infrastructure compared to 2021 with new IKEA stores in Piraeus and Athens Mall but also new Intersport stores in Greece and Bulgaria together with larger logistics facilities. At the same time it has invested in omnichannel and logistics, employing a larger number of staff in ecommerce in addition to the new physical stores. The first quarter is characterized by the executives of the group as a “small quarter” with operating deleverage, which in terms of profitability is burdened by investments for the future development of the group, which also bring increased operating costs.
Regarding the field of inflationary pressures in the context of the presentation in Oinofyta, it was reported that product prices have been passed on to the final points of sale of IKEA, amounting to 5% -6% on average. The head of the group, Vassilis Fourlis, clarified, however, that these increases do not correspond to the much greater burden on cost indicators.
Source: Capital
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