ADM Londis to open 12 new stores in 2011
20 May 2011
ADM Londis has announced it will add 12 new stores to its retailer network throughout 2011, supporting an estimated 240 jobs.
In a press statement, the group said that despite passing significant price cuts to its retail members, it had remained profitable throughout the recession with pre-tax profits for 2010 standing at €1.1m compared with €1.7m in 2009 on wholesale turnover of €237m.
With like for like sales down 7%, group retail member sales totalled just under €500m for 2010. The group also expects profits to increase in 2011.
The store recruitment process is reportedly already underway with two stores secured.
What’s more, with a financial foundation of shareholders’ funds in excess of €20m, ADM Londis is also assessing the potential of future acquisitions.
CEO Stephen O’Riordan said “an effective cost review programme over the last number of years” had created a “lean, efficient business” with a low debt profile, which could take advantage of a suitable acquisition opportunity – “either directly within our market or in a complementary service or franchise offering”.
A rebate scheme was launched in 2010 encouraging purchases through the central warehousing facility in Johnstown by rewarding purchasing loyalty in return for a wider range of benefits. A warehouse bonus rebate was also introduced offering retailers more opportunities to maximise rebate earnings and avail of reduced pricing.
The support resulted in a “significant 17% increase in warehouse sales volumes.”
ADM Londis also made a €150,000 investment in a web based service delivery platform for its retailers this year. The intelligent systems increase sales (ISIS) programme is “a market first within the grocery wholesale sector.” It provides retailers with live feedback on category management, promotional statistics and seasonal sales patterns.
The company also announced the recent appointment of Kieran O’Farrell to its senior management team as group head of trading. O’Farrell had previously held a number of management positions at Tesco Ireland.
The group continues to invest in marketing support and is the lead sponsor of TV3’s ‘Come Dine with Me’.