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Conad

Conad (Consorzio Nazionale Dettaglianti) is an founded in 1962 and headquartered in , operating as the country's leading large-scale retail brand through a network of 3,315 stores across all regions and 107 provinces. The organization structures itself as a of five territorial cooperatives—Conad Nord Ovest, Conad Centro Nord, Commercianti Indipendenti Associati, Conad Adriatico, and PAC 2000A—supported by 2,162 member entrepreneurs who manage daily operations, emphasizing local ownership and community integration. In 2024, Conad reported a turnover of €20.9 billion, marking a 4.5% increase from the previous year and a 70% growth over the past decade, while maintaining a of approximately 15% in Italy's grocery sector. With 80,934 employees and serving 13 million families weekly, Conad offers diverse formats including hypermarkets (Spazio Conad), supermarkets, and convenience outlets (Conad City), alongside an expanding presence through its "Hey Conad" platform. The brand's private-label products, 5,845 items under the red daisy logo, account for over 33% of sales, focusing on quality, affordability, and initiatives that support local communities and environmental goals.

Overview

Company Profile

Conad, officially known as Consorzio Nazionale Dettaglianti, is an chain founded on May 13, 1962, in , , as a uniting independent retailers to enhance their and market presence. Headquartered in , the company operates as a system where ownership and management are held by its member retailers, who form a national focused on centralized purchasing, marketing, and logistical support while maintaining autonomy in daily operations. This structure distinguishes Conad as a network of entrepreneur-driven entities rather than a traditional corporate , enabling adaptive local strategies within a unified national framework. As Italy's leading chain by , Conad maintains a dominant position in the domestic grocery sector, holding approximately 15% of the national market in 2023. The network encompasses 3,315 stores across all 20 as of 2024, serving a broad customer base through various formats tailored to urban, suburban, and rural areas. In 2024, Conad employed 80,934 collaborators, reflecting steady growth in its workforce to support expanding operations and service demands. The model fosters resilience and innovation, with member —numbering 2,162 as of 2024—collaborating under the to negotiate with suppliers, develop private-label products, and implement initiatives. This entrepreneurial approach has solidified Conad's scale and influence, positioning it as a key player in Italy's large-scale distribution sector since its early years.

Financial Performance

Conad reported a sales network turnover of €18.49 billion in 2022, marking an 8.7% increase from the previous year. This figure underscored the cooperative's robust position in Italy's large-scale trade (GDO), where it maintained leadership with a of 14.96% across hypermarkets, supermarkets, and discount channels. In , Conad's exceeded €20 billion, reflecting an 8.11% year-over-year driven by expansions and diversification into services such as private-label products, which accounted for €6 billion in sales and represented 33.2% of packaged consumer goods in the channel. The company's net profit surpassed €159 million that year, contributing to its overall financial health amid a challenging economic . Conad solidified its status as Italy's largest chain, holding a 15.01% in key channels, up from 14.96% in 2022. Globally, it ranked 61st among retailers in Deloitte's Global Powers of Retailing 2022 report, based on financial performance for fiscal years ending in the prior 12 months. In 2024, Conad achieved a turnover of €20.9 billion, a 4.5% increase from 2023, with a of 14.86% in the total Italian market. Private-label sales reached €6.3 billion, comprising 33.3% of total sales. The aggregate net equity grew to €3.76 billion. expanded to 80,934 collaborators, supporting operations across the cooperative's five member entities. These earnings gains aligned with broader trends of steep profitability increases in recent years, fueled by operational efficiencies and strategic investments in and integration.

History

Formation and Early Years

Conad was established on May 13, 1962, in , , as the Consorzio Nazionale Dettaglianti (National Retailers' Consortium), a formed by merging 14 regional purchasing groups primarily from , including bases in , to create a national purchasing consortium for independent retailers facing competition from emerging industrial chains. This formation, initiated under the auspices of Confesercenti, united small owners to enable collective bulk buying and strengthen their market position against larger distributors. In its early structure, Conad operated as a voluntary chain of small, independent grocery stores, emphasizing cooperative procurement to achieve in purchasing goods and negotiating with suppliers, which allowed members to maintain while competing effectively with the rise of supermarkets in post-war . At its formation, the included 420 member retailers, with initial operations centered on regional distribution networks in and surrounding areas. A key milestone in the came with the adoption of the "Conad" brand name, which provided a unified identity for the cooperative's purchasing and marketing efforts, followed in 1971 by the introduction of the distinctive red daisy () logo to symbolize freshness and reliability across stores. This branding facilitated the opening of Conad's first in Bologna's Fossolo district in 1971, marking the shift toward modern formats. Initial growth accelerated in the , with expansion from its roots to achieve national coverage by 1974, encompassing all Italian regions through 196 affiliated groups and over 19,000 retailers. By the late , Conad had solidified its presence as Italy's leading network, setting the stage for further consolidation in the 1980s.

Expansion and Acquisitions

Conad's expansion into large-format began in 1990 with the launch of its first , Pianeta Conad, in , which represented a significant shift toward operations and diversified its beyond traditional supermarkets. This initiative marked the cooperative's entry into broader formats, enabling greater scale in product offerings and customer reach across . During the 2000s, Conad prioritized the buildup of its national store network through consistent and cooperative integrations, expanding from regional strongholds to a more comprehensive presence throughout . By 2023, this effort had resulted in a network of 3,331 points of sale, supported by 394 additional concept stores such as parafarmacie and pet stores. A pivotal acquisition in this strategy was the 2019 purchase of nearly all Retail Italia's operations, including approximately 1,600 stores across for about €1 billion, which positioned Conad as the country's leading er; affiliate Gruppo Arena specifically acquired 33 stores in , enhancing the group's southern foothold. Post-2020, Conad emphasized strategies to adapt to evolving consumer behaviors, bolstering digital integration with initiatives like the HeyConad app, which garnered 1.8 million unique users and 36.2 million sessions in 2023, alongside enhanced and programs via the Carta Insieme card, reaching 8.7 million users. These developments coincided with leadership transitions following controversies surrounding the acquisition, including the removal of CEO Francesco Pugliese in June 2023 amid investigations into alleged and self-laundering (with €36 million seized), leading to the appointment of Mauro Lusetti as on May 9, 2023, and the establishment of a new management structure under General Manager Francesco Avanzini, aimed at steering further growth amid economic challenges.

Retail Operations

Domestic Store Formats

Conad operates a diverse range of domestic store formats in , tailored to different customer needs, locations, and behaviors, forming a that emphasizes quality, convenience, and value across urban, suburban, and rural areas. These formats include large hypermarkets for comprehensive one-stop , mid-sized supermarkets for weekly family purchases, standard supermarkets for everyday needs, and smaller convenience outlets for quick urban access, with the overall network comprising over 3,300 stores as of 2024. Spazio Conad represents Conad's largest , consisting of 78 hypermarkets with an average surface area of 4,759 m², offering 16,000 to 19,000 items including a broad selection of products, fresh goods, and non-food items, alongside such as pharmacies, pet care, and optical shops to provide a complete shopping experience for families seeking extensive assortments in one location. Introduced in 2020 as part of the integration of former stores, this targets comprehensive needs in larger commercial zones, transforming traditional hypermarkets into multifunctional hubs. Conad Superstore comprises 261 mid-sized stores averaging 1,900 m², stocking 10,500 to 12,000 items with a strong emphasis on fresh produce, local specialties, and Conad's private-label products, catering to suburban customers who prioritize quality and value for larger weekly shopping trips. This format balances expansive assortments with efficient layouts to serve families in less densely populated areas, often incorporating tools for enhanced . The standard Conad format includes 1,207 supermarkets with an average size of 865 m², featuring 7,000 to 8,500 items focused on a complete range of groceries, household essentials, and regional products, designed for both urban and rural communities seeking reliable daily or multi-purpose shopping. As Conad's historic core brand, it emphasizes accessibility and personalized service to meet diverse household requirements across Italy's varied geographies. Conad City operates 1,012 convenience stores averaging 349 m², with assortments of 4,000 to 5,000 items tailored for rapid and neighborhood purchases, including essentials, fresh items, and ready-to-eat options to serve city-center residents and small municipalities under 5,000 inhabitants. This proximity format prioritizes and quality for on-the-go shoppers, with many locations in high-traffic areas to facilitate quick daily needs. In addition to these primary formats, Conad integrates smaller chains like Todis, a discount-oriented brand with over 300 stores focused on value-driven everyday essentials in central and , and Margherita Conad, featuring 337 compact outlets for basic, speedy purchases near homes, enhancing the network's coverage through ownership under Conad's umbrella. Other niche formats, such as Tuday Conad (39 urban convenience stores averaging 405 m² with 4,500 to 5,500 items for efficient city shopping) and Sapori & Dintorni (15 specialty stores at 490 m² offering 3,000 to 4,000 local products), further diversify the portfolio for targeted markets.

Store Network and Distribution

Conad maintains a nationwide presence in all 20 , ensuring broad accessibility for consumers from urban centers to rural areas, with a denser concentration of outlets in the northern and central regions where major cooperatives like Conad Nord Ovest and PAC 2000A operate extensively. This coverage allows the network to serve diverse local markets, adapting to regional preferences while maintaining consistent branding and service standards. As of , the system encompasses 3,315 stores, reinforcing its role as Italy's leading retail cooperative in terms of geographic reach and . The distribution system relies on centralized purchasing coordinated through the Conad , which leverages power for suppliers, while regional hubs handle localized operations to ensure timely and cost-effective delivery. These hubs, managed by the five primary cooperatives (Conad Nord Ovest, Conad Adriatico, PAC 2000A, Commercianti Indipendenti Associati, and Conad Centro Nord), include over 50 facilities across , such as the major center in Montopoli Val d'Arno for central operations and the Grottaglie hub in southern Puglia. This multi-hub model optimizes inventory flow to more than 3,300 stores, minimizing transit times and supporting fresh goods distribution through specialized cold-chain infrastructure. The 's scale integrates thousands of independent retailer outlets into a cohesive system, enabling unified operational standards and shared resources that drive efficiency for daily activities. In 2024, this structure supported 80,934 employees across the network, including staff, personnel, and administrative roles, highlighting the cooperative's capacity to sustain large-scale operations while empowering local entrepreneurs. Sustainability forms a core aspect of Conad's strategy, with initiatives focused on reducing environmental impact through efficient distribution practices, such as route optimization and fleet introduced after 2020 to address pandemic-related disruptions and rising costs. These efforts have lowered CO₂ emissions from and enhanced overall , aligning with broader goals of cost control and eco-friendly operations across the regional hubs.

International Presence

Overseas Markets

Conad began its international expansion in the , focusing on the Balkan and Mediterranean regions through partnerships with local entities to establish a foothold in emerging markets. This approach allowed the to leverage regional cooperatives for operational support while introducing its supermarket model outside . By adapting store formats like Conad City and standard supermarkets to local needs, Conad has built smaller networks compared to its domestic operations, emphasizing quality Italian products alongside regional assortments. In , Conad entered the market in 2007 via the Conad Adriatico joint initiative, which aimed to open multiple branches and construct shopping centers by 2009. As of May 2024, Conad operates 44 stores across combined, with the majority in Albania's urban areas such as and , utilizing adapted formats that include stores for convenience shopping. These outlets incorporate local produce and goods while preserving Conad's core branding and offerings to appeal to everyday consumers. Conad's presence in Kosovo dates to 2014, with the opening of its first supermarket in 's Grand Store Mall through a emphasizing food . Initial plans targeted five locations that year, and the network has grown to approximately 4 stores as of 2024, in (including neighborhoods such as Arbëri and Breg të Diellit) and . Formats mirror Italian models but feature localized sections for Balkan specialties, ensuring assortments blend Italian imports with fresh regional items to meet local preferences. In , a neighboring enclave, Conad maintains a single superstore in Serravalle at Via Marino Moretti 23, integrated into the since the early . This large-format outlet serves the small population with a comprehensive range of groceries, household goods, and services, adapted to include San Marino-specific products while upholding the cooperative's emphasis on fresh, branded selections. The store's location supports cross-border shopping from nearby , reinforcing Conad's regional strategy. Conad ventured into Asia with an initial foray in in 2010, followed by in 2015, where it opened five supermarkets distributed across and the provinces of and as of that year. These stores adopted compact formats suited to , featuring assortments that combined Italian specialties with popular Chinese staples to facilitate cultural adaptation and attract expatriates alongside locals. Although the scale was modest at the time, recent information on ongoing store operations is limited, with focus shifting to product exports through local distributors for supply chain efficiency in distant markets. Operations in Malta and Serbia are more limited, primarily involving product distribution and ties rather than extensive store networks, aligning with Conad's selective approach to overseas growth in the Mediterranean and Balkan areas during the . In these markets, the focus has been on introducing items through existing channels, maintaining brand visibility without large-scale infrastructure.

Global Expansion Strategies

Conad's global expansion strategies emphasize exporting its model through joint ventures and strategic alliances with local retailers, an approach initiated in the mid- to adapt the framework to contexts while maintaining operational for partners. This model prioritizes partnerships that leverage Conad's expertise in efficient supply chains and products, allowing for localized management and reduced entry risks in foreign markets. By , this supported a modest footprint, including operations in , , , , , , and , primarily managed by the Conad Adriatico . Key initiatives have focused on targeted market entries, such as the for affordable store formats tailored to emerging economies. In , Conad established a with local partners in 2007, opening multiple stores and planning further growth, including two shopping centers by 2009. This was extended to with store openings, and in 2024, the Albanian branch announced expansions into and to capitalize on regional synergies, with plans ongoing as of 2025. In , Conad pursued premium product exports through alliances, entering in 2015 with five stores in , , and provinces, alongside and pilots featuring 250 own-brand items. These efforts highlight a dual approach: affordable proximity retail in the and high-end product positioning in . Navigating international expansion has involved adaptations to regulatory differences, such as varying import standards and licensing in the and , alongside cultural preferences for localized assortment and pricing. Post-2020, Conad integrated practices, like eco-friendly packaging in exports, and digital tools for visibility, though these remain more pronounced in domestic operations with spillover to partners. Broader challenges include geopolitical influences on energy costs and supply disruptions, which have prompted cautious scaling to mitigate volatility. Looking ahead, Conad envisions measured growth in and , building on its network of over 3,300 domestic stores to support international and . The 2024 Balkan announcements signal continued focus on regional consolidation, while maintaining a niche presence in through product exports, with overall international comprising a small but growing portion of the group's €20.9 billion 2024 turnover.

Corporate Structure

Cooperative Model

Conad operates as a retailer-owned , structured as a national that unites independent retail entrepreneurs organized into five primary regional : Conad Nord Ovest, Conad Centro Nord, Commercianti Indipendenti Associati, Conad Adriatico, and PAC 2000A. These , comprising approximately 2,200 independent who own and manage individual stores, collaborate through the for centralized purchasing, logistics, marketing, and branding, enabling while preserving local operational control. This model delivers key benefits to members, including substantial cost savings from with suppliers, equitable proportional to each cooperative's and retailer's contributions, and high levels of that allow store operators to tailor offerings to regional preferences and needs. By pooling resources without ceding , the structure fosters resilience and competitiveness in the Italian grocery market. Founded in 1962 as a voluntary of retailers responding to growing from larger chains, Conad evolved into a federated system by the and , incorporating regional divisions to streamline operations and expand nationwide coverage. This progression from a loose to a coordinated network of cooperatives strengthened its position as Italy's largest organization. In contrast to consumer-owned cooperatives like Coop Italia, which are controlled by customer-members, Conad's retailer-centric approach prioritizes entrepreneurial independence and direct involvement of store owners in decision-making, differentiating it from investor-driven corporate chains through its emphasis on shared governance among retailers.

Governance and Leadership

Conad's governance operates within its cooperative framework, where the Board of Directors is elected by representatives from the regional cooperative companies, ensuring alignment with member interests across Italy. The board comprises 11 members: the president, vice president, and two representatives from each of the five associated cooperatives, to reflect regional diversity and retailer perspectives. This structure emphasizes representation of the approximately 2,200 member entrepreneurs who manage over 3,300 stores, adhering to a "one head, one vote" principle that prioritizes entrepreneurial input in decision-making. Strategic decisions are guided by the , which oversees national-level functions including marketing strategies, centralized purchasing negotiations, and compliance with regulatory standards like Legislative Decree 231/2001 on . The annual Members' Assembly, convened by the cooperatives, plays a key role in approving budgets, appointing auditors, and endorsing major strategic directions, fostering collective governance. Current leadership includes President Mauro Lusetti, appointed on May 9, 2023, and reconfirmed in May 2025, alongside Francesco Avanzini, who has held the position since October 2018. In 2023, a leadership transition streamlined the organizational structure under Lusetti and Avanzini, empowering managerial roles to advance digital initiatives like the Hey Conad app and sustainability programs under the "Sosteniamo il futuro" framework, with a €2.2 billion investment plan for 2025–2027 supporting these goals.

Products and Services

Private Label Offerings

Conad's offerings form a of its product strategy, encompassing a diverse portfolio of own-brand items that emphasize quality, affordability, and alignment with culinary traditions. The core Conad brand, symbolized by its distinctive red daisy logo, includes over 3,800 products focused on daily essentials such as pantry staples, fresh produce, and , ensuring customers receive high-quality items at competitive prices. These offerings are developed through in-house sourcing and strategic partnerships with nearly 1,000 primarily suppliers, with 95% of products originating from domestic producers to support local economies and maintain authenticity. Complementing the core line are specialized sub-brands that cater to premium, health-conscious, and sustainable preferences. Sapori&Dintorni, a premium range launched in 2001, features over 420 items highlighting regional Italian specialties, with one-third certified as (PDO) or Protected Geographical Indication (PGI) products to preserve . Other notable lines include Sapori&Idee, introduced in November 2020 with over 210 gourmet selections; Verso Natura, offering more than 300 eco-friendly and products; and Conad Baby, which provides Natrue-certified items for infants. These brands collectively exceed 5,200 SKUs, covering approximately 30-40% of store assortments through balanced production collaborations that prioritize freshness, ingredients, and certifications like the Featured Standards (IFS). Quality and underpin the entire ecosystem, with rigorous controls including over 10,000 annual laboratory analyses and inspections to guarantee origin and environmental responsibility. Post-2020 expansions have intensified focus on and eco-friendly options, such as Verso Natura's initiatives, where over 70% of products now incorporate recycled materials, reflecting Conad's commitment to affordability without compromising on ethical sourcing or heritage. This approach has positioned private labels as a market leader, accounting for 33.3% of total sales and generating €6.3 billion in turnover in recent years.

Additional Retail Services

Conad has diversified its retail offerings beyond traditional grocery through specialized concept stores focused on , , , and convenience services, enhancing customer loyalty and revenue streams from non-food segments. These services are integrated into larger store formats or operate as standalone outlets, providing accessible, value-driven solutions tailored to everyday needs. The Parafarmacia Conad network comprises 185 outlets across , offering non-prescription medications, medical devices, supplements, , and wellness products, supported by 580 qualified pharmacists serving over 5.7 million customers annually. These pharmacies emphasize and homeopathic remedies, generating €135 million in revenue in 2024. PetStore Conad operates 166 specialized pet shops in 16 regions, with 26 new openings in 2024, catering to pet owners with food, accessories, and care products staffed by 580 collaborators. The segment achieved €140 million in revenue in 2024, reflecting a 17.8% year-over-year increase from 2023, driven by expanded services including veterinary consultations in select locations. Conad Self 24h consists of 51 convenience stores at fuel stations, enabling 24-hour refueling and quick purchases of essentials, with 454 million liters dispensed and 19.7 million refuels recorded in 2024, offering average monthly savings of €7.29 per customer. Ottico Conad includes 23 opticians, seven of which are integrated into ConCURA centers, providing vision exams, over 800 models from premium brands at 20-50% discounts, and lenses with professional consultations for 123,000 clients, yielding €7.86 million in revenue in 2024. These services contribute to Conad's strategy, where physical outlets connect with the HeyConad app—used by 2.39 million unique users in 2024—for seamless access to bookings, promotions, and personalized health or pet recommendations, fostering retention amid rising non-grocery revenues. In 2024, such segments showed notable growth, supporting overall diversification efforts.

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