With a model that combines key “reference” points of the Greek organized retail trade, i.e. a structured offer policy, luxurious and comfortable halls, which give the best shopping experience, a wide range of codes, which “fit in” with the logic of “affordable luxury”, but also a strong reference in the locality, with a special range of private label products, the Masoutis company is aiming for a turnover of over 1 billion euros.
In particular, Masoutis, in 2023, after passing the psychological threshold of 1 billion euros, reaching its sales of 1.07 billion euros, recording an increase of 16%, in the first quarter of 2024, “runs” at a rate of 7.5% . And this at a difficult moment for the market, where, as can be seen from the latest data, there are “signs” of a “brake” in sales, both in terms of turnover and volumes. In this context, the management of the chain expects a marginal increase compared to 2023.
The “levers”
Given, most obviously, the great challenges for retail that have to do both with the expected drop in internal demand, but also with the “saturation” in the sector, where the ratio of available square footage per inhabitant is the highest in the EU (ie every resident has many supermarkets at his disposal to choose from) the company “sees” its development course in a series of axes.
First, as its management has repeatedly stated, it is launching responses to the issue of inflation, both with the intensity of offers and the transfer of part of the profitability to consumers, but also with the development of private label products.
At the same time, through investments of a total amount of 24 million, it proposes targeted store openings, mainly in tourist areas and Attica, where it has large penetration margins. Especially in Attica, it is considering how to increase its footprint, which remains small with a share of only around 3%. Essentially, it seeks to “build” a highly efficient network with the ultimate goal of reaching a share proportional to the national share, which it already has, i.e. 10% of the total turnover.
In addition, it is launching a plan to strengthen the franchise development process, in places where there is difficulty in finding real estate or organic development. After all, this franchise model “fits in” with the new requirements for flexibility and reduction of operating costs, which modern retail is looking for. Thus, it promotes the gradual evolution of the 159 Express Market stores, which is essentially the network, where it currently has its products, into a closed franchise. The first step will be the pilot opening with “Masoutis” markings, 19 franchise stores starting from Northern Greece. Also, the chain has received proposals for the inclusion of some shop in shops from well-known retail brands in its large stores.
At the same time, it is developing infrastructure for cash and carry, wanting to gradually build a position in an interesting sector, while also promoting the plan for utilizing the properties it has, with reference to real estate.
Network development
This strategy was expressed in a meeting with journalists from the management, in an eloquent and clear way, during the event for the “opening of the doors” of the renovated supermarket at the 1st km of the National Road of Lefkimmi Corfu, on the island of Faiakon, where Masoutis “writes” the 4% of its total turnover, i.e. approximately 50 million euros.
This particular store has a usable area of 1600 square meters as well as significant storage space. In total it employs 314 workers on the island, 230 women and 84 men. In fact, the intention of the chain, as the President and CEO Mr. Yannis Masoutis told the press in Corfu, is to create a Cash & Carry in a privately owned space opposite the store in Corfu that he inaugurated last Saturday with the opening of operations in 2025.
It should be noted that in Corfu, the northern Helladic supermarket chain has a leading presence starting in 2022 after the agreement with SYN.KA Kritis Hyperagores S.A. and the acquisition of the 18 stores of Galaxia and Markato.
As the executives of the company mentioned in particular on the sidelines of the opening of the renovated supermarket at the 1st km of the National Highway of Lefkimmi Corfu, the expansion in tourist areas and especially in the Ionian Islands will continue.
Already, a few days ago Masoutis acquired two plots of land in Lefkada for 1.7 million euros (coincidentally, the name of the owner of the land was Sklavenitis, not of the chain, but of the well-known business family).
It should be noted that the islands now contribute approximately 14% of the chain’s turnover, without, of course, counting the participation in SYNKA in Crete, which is not consolidated in Masouti’s financial statements.
Targeted movements
However, the company’s management promotes a balanced development plan as the scope for concentration through acquisitions is limited. It also favors land purchase solutions with data and leases have skyrocketed, but also the demands of those “thinking” to sell their chains and points are often exorbitant.
Already, the company has entered the field of real estate development with an area in Treis Gefyres, where the construction of a superstore and two nine-story apartment buildings is being implemented, while the opening of two new stores in Nea Smyrni and Chalkida is planned. In 2024, 15 stores will be renovated, of which 12 in the region and three in Athens, while until today, since the beginning of the year, five stores have been renovated, one in Santorini, two in Corfu, one in Milos and one in Trikala.
To be noted in the plan is also the eventual creation of a new company to which some real estate and some lands that it already has and those it is going to acquire in the future will be selectively contributed.
