San Sebastián (EFE).- The Uvesco Group, which manages the BM and Super Amara brands, has asked to lower VAT on meat and fish to combat inflation.
The Gipuzkoan company has managed to grow 5% in 2022 with a strategy based on “reducing margins and increasing promotions” to combat the escalation of inflation.
VAT on meat and fish
The president and CEO of the Uvesco Group, Jose Ramón Fernández de Barrena and Ángel Jareño, respectively, reported this Tuesday at a press conference in San Sebastián on the results and prospects of this business group.
The Irun-based group achieved net VAT sales of 986 million euros last year.
Fernández de Barrena has highlighted the “effort” carried out by the company to mitigate inflationary pressures. He specified that, according to data from the Nielsen consultancy, the average increase in the basket of consumer products in Spain has been 8.5%, while in the case of Uvesco supermarkets it stands at 7%.
The president of the group added that “additionally” the group invested more than 23 million euros in discount vouchers and coupons in 2022, in addition to reducing its margins by 0.4. He has also stressed that these measures have been possible thanks to the fact that the company had limited the price of electricity.
“Our idea is to maintain this promotional activity and even increase it” by 20% this year despite the “very tight margins we have”, Fernández de Barrena stressed.
Change in consumption habits
He has ensured that “an excessive effort cannot be made in sales prices without the value chain suffering”. “We can make a small adjustment in margins, but the local producer still can’t,” she warned.
He has been in favor of promoting a formula that is “sustainable” for all links, including the administration and has opined that there is room to lower VAT on meat and fish.
Also to put pressure on large “industrial suppliers”, some multinationals, to “reduce their rates” since “prices will automatically be reduced” on the shelves.
The escalation of prices has also brought a change in consumption habits in supermarkets, since there is less “customer loyalty, who snack more in different chains”, make more visits to stores, make smaller purchases and they consume more private label, specify those responsible for Uvesco.
Despite the complex scenario that distribution has experienced in 2022, Uvesco has closed the year with growth of 5.3%, in line with that of recent years, reaching sales net of VAT of 986 million euros.
Investment of 35 million
The company, which opened seven of its own stores in 2022, ended the year with 264 stores in the Basque Country, Cantabria, Navarra, La Rioja, Madrid and Ávila, as well as 19 BM Shop franchises and the e-commerce platform, which registered an increase of their sales of 16%.
Regarding 2023, Jareño explained that an investment of 35 million euros is expected that will allow the start-up of nine supermarkets. Two in Gipuzkoa, one in Álava, one in Navarra and five in the Community of Madrid. in addition to the opening of eight new franchises.
However, Uvesco has among its objectives to address an acquisition operation of a chain in the “short or medium term” as stated in the strategic plan of a group.
It has 6,000 workers and maintains its headquarters in Irun (Gipuzkoa) after the majority entry into its capital from the investment fund PAI Partners.
