March 2010
Caprabo selects Itim’s Profimetrics Intelligent Profit Optimization to manage and optimize pricing decisions
Barcelona, 16th March 2010 – Spanish leading supermarket chain Caprabo, part of Eroski Group, has selected Profimetrics Intelligent Profit Optimization (Profimetrics) from Itim, a software company specialized in developing optimization solutions for retail.
One of the biggest food retailers in Spain, Caprabo will be managing all pricing variables using Profimetrics, enabling faster decisions and optimizing margins. After the success of an initial pilot performed during the 2nd semester of 2009 to prove the ability to implement on the tool Caprabo’s pricing policy and rules and test the adherence of the business community, Caprabo decided to fully implement Profimetrics and roll-it-out for all categories.
Alberto Ojinaga, Caprabo’s Management Control Director, said: “Caprabo, in its pledge to continue improving prices for our clients, has chosen Profimetrics as a solution that enable us to achieve this objective by optimizing margin reduction. In an environment where pricing strategy is an essential element of competitiveness and with increasing complexity, Profimetrics allows us to manage our prices in an efficient way. In addition to that, it has allowed us to be much more agile and flexible in reacting to market movements, rapidly transferring price changes to our clients.”
Nuno Rodrigues, Itim’s head of sales and marketing for Iberia, said “In the current economical environment where consumers cherry-pick the best offers from each of the players in the market, margin is the most important variable to control. Retailers need to be agile and competitive, whilst maintaining consistency in their market positioning and brand image. The Spanish food retail market is highly competitive; international, national and local players are fighting for market share with increasingly lower margins. I strongly believe that Caprabo will take advantage of having Profimetrics as an enabler for better pricing and margin decisions, and will emerge as one of the winners.”
About Caprabo
Caprabo, a benchmark retailer, has a network of 355 supermarkets located in strategic areas of Catalonia, Madrid and Navarra. It represents the city supermarket with the highest number of reference items that combines saving offers with the market’s largest brands supply. The company is staffed by 10,000 people who turn Caprabo into one of Catalonia leading employers. Caprabo is owned 75% by Eroski, 16% by the Botet family and 9% by La Caixa. Caprabo was founded in 1959 and celebrated its 50th anniversary in 2009. Caprabo has the oldest supermarket in Spain, opened in 1959, that is still operating on calle Sant Antoni Maria Claret, in the city of Barcelona.
In 2008 Caprabo’s turnover was 1.671 million Euros.
Eroski closed 2008 with an 18% uplift on gross sales, achieving an EBITDA of 370 million Euros with 9.013 million Euros of revenues.
Eroski commercial network totals nearly 2,300 stores in Spain and is composed by Eroski hypermarkets, Eroski/center, Caprabo and Eroski/city supermarkets, travel agencies Eroski/ viajes, petro-stations, Forum Sport stores, IF perfume shops, leisure and culture Abac shops, and 22 warehouses. This network is complemented with 482 franchised supermarkets. In France, Eroski has 39 stores (hypermarkets, supermarkets and petrol stations and in Andorra, 4 IF perfume shops.
For the last 40 years, 10% of Eroski’s benefits are destined to social initiatives. The majority of these profits are channeled through EROSKI FOUNDATION who rolls them back into society mainly covering three types of community needs: information and consumer education, environmental protection and solidarity.
Eroski’s turnover in 2008 was 9.013 million Euros with more than 50.000 employees.
