Of George Lampiris
With constant investment movements based mainly on its organic growth, Pente SA has been active lately. company that manages Galaxy supermarkets.
The company’s strategy is mainly the acquisition of real estate and in some cases the construction of new stores from scratch, a fact that comes in some cases and as compensation for attempts to acquire smaller chains, which did not succeed especially in western Greece.
During this period, the company has located plots in Preveza and Agrinio, which according to sources close to the company are of particular commercial and investment interest due to their location at key points of the two cities.
The same sources, however, state that the moves to acquire the specific plots of land identified by the chain are stagnant, as issues related to their property status have arisen. However, in any case, their acquisition is a process that is in full swing.
In Kalamata the chain seeks to expand the existing privately owned store, by acquiring an adjacent plot and in Argos the procedures for acquiring a plot in a peripheral part of the city are progressing.
In addition, the Galaxias chain is in the final stages of drafting contracts for the acquisition of another plot of land in Ioannina.
Remember that in the area Galaxias already has a presence with a store and with this purchase it proceeds to the creation of another one, which is in exactly the opposite direction from the existing one.
This serves the purposes of the company to acquire another point of sale, expanding the degree of dispersion of its stores, without creating “cannibalism” phenomena that could occur if the two points are close.
Inauguration of the first privately owned store in Corinth
At the same time, Galaxias inaugurates at the beginning of December his first privately owned store in the center of Corinth and implements the construction of another one in the same area, where he already maintains another store, which he rents in the area of Poseidonia outside the city. At the end of 2020, it had a total of 167 stores, of which 86 were privately owned and 81 were leased.
As far as Northern Greece is concerned, the chain has given special importance during this period to the renovation of its stores, which are in the final stage of completion, including the stores of the short-chain chain, OLLA, which it acquired last year and Its stores are located in the areas of Thessaloniki, Kalamaria, Stavroupoli, Toumpa and Charilaou.
The renovation plan also includes the chain’s old and pre-existing stores in Northern Greece. The total amount of investment expenditure in renovations, real estate purchases and new stores for 2021 amounted to 10 million euros, while for 2020 the total investment is estimated to exceed 20 million euros, once it completes the acquisition of land it has chosen between in which Preveza and Agrinio.
The goal is to find a pre-existing supermarket in Arta and not to proceed with the construction of a new store in the area, as the existence of antiquities in the subsoil – something that is common – could significantly delay the plan of the Galaxy.
Indications for turnover over 2020 for this year
Regarding the course of the first ten months, the same sources report that the company is moving upwards compared to the corresponding period of 2020, which may signal that the chain will close upwards this year’s financial year.
This development comes as last year is not considered comparable due to the extraordinary circumstances and the explosion of demand brought to supermarkets by Covid-19 disease, which actually increased sales.
In 2020 the turnover of the Galaxy amounted to 511.5 million euros, compared to 450.13 million euros in 2019 with a net profit of 21.38 million euros compared to 9.58 million euros in 2019 and zero loan dependence.
For the market as a whole, competition is currently particularly strong among supermarkets, as chains seek to approach last year’s turnover.
However, this pursuit seems like a riddle, if one takes into account the wave of price increases that has been manifesting in the recent period in the market. It is characteristic that the Galaxy has raised prices of products with the main ones being found in pasta, in olive oil due to the reduced production in the primary sector that boosted producer prices, as well as in fresh products such as dairy products.
The Mall project in Salamina
Finally, the construction of a mini-mall that Pente SA has planned to create remains pending. in Salamina, as the approval of the Quality of Life Council of Salamina is required, a fact that will pave the way for the construction works. Once the construction permit is issued, the construction time is estimated at two years.
Source From: Capital