A year of success and growth, 2023 for Penny Italia, which enters its 30th year of activity in 2024 and presents the new communication campaign
A year of success and growth, 2023 for Penny Italia, which enters its 30th year of activity in 2024 and brings the enthusiasm and satisfaction of the company top management to the annual press conference, with the Coo Gotthard Klingan and the CFO Wolfgang Vogt they tell in their speech in Italian.
Penny Italia’s 2023 results and investments in 2024
And here are the numbers for 2023 as told by Wolfgang Vogt: a turnover growing by +8.7%, a turnover of 1.619 billion euros with a sales network of 449 stores in 18 regions, investments of 70 million euros also used for the new openings (34) and for the modernizations (78), the new logistics platform of Buti 8Pi) and the fresh one in Buccinasco (Milan), over 28,000 employees.
“The stores alone led to a growth of +2% in turnover – said the CFO – also thanks to the renewal of the concept, another important lever. In 2024 there will be 26 new openings and over 50 modernisations. Italy is reacting with resilience, innovation and courage to the complex scenario dictated by inflation, thanks to the professionalism of the people”.
The target of openings is to reach 30, those announced are already assured but Gotthard Klingan, COO of Penny Italia plans to go further by developing the new format that increasingly characterizes Penny as a “neighborhood discounter”, based on fresh products also with assisted butcher and delicatessen departments. “The objective of ‘being closer’ – he explains – implies important investments in logistics, such as the new warehouse of over 20,000 m2 in Puti, always combined with sustainability, thanks to solar panels. The Buccinasco warehouse concentrates all the purchases of fresh and ultra-fresh for over 200 points of sale. The other key is people: we want to be a brand for our customers but also for our employees”.
Penny International and Rewe International
Penny International also had a positive 2023, with a turnover of 7.7 billion euros, growing by +15.9%. “We are very satisfied with the constant positive development in Italy, which is a key market for us – he said Michael Jaeger, board of Rewe International – and here we want to grow as a discounter in a sustainable way and with long-term plans, as reflected in Rewe’s planning. We will continue with investments in a similar way to 2023″. In 2023 Penny Italia acquired 18 Faranda Group stores in Rome, which led to the brand’s presence in the city tripling.
The discounter has developed the brand in each country, enriching the stores with local products. In Italy in particular, an event recently concluded in Milan which brought together over 1,000 national producers with Penny Italia buyers.
Penny Italia budget and strategies in 2024
“We expected a recovery in consumption this year – he says Nicola PierdomenicoCEO of Penny Italia – and instead… thanks to Easter arriving at the end of the month, the leap year, but we are an optimistic company”. And it couldn’t be otherwise, in the 30th anniversary year to which a new campaign is also linked of communication. Compared to 2023, Penny has eroded its margins to control inflation and as a further difficulty it is forced to comply in advance with the increasingly stringent European rules following Germany, where the parent company is located.
The Penny formula has evolved a lot since the first opening in Cremona in 1994, with many changes of skin, for example the transition from 450 codes to the current 2,800-3,000, and the great evolution of fresh products previously completely absent from discount stores. This is to intercept new customers and seize new revenue opportunities.
The new formatwith the sign Penny Pointfocuses precisely on fresh products and takes advantage of the 7 Cedis plus the new one from Buccinasco, “a fresh hub that we need to increase the references on the shelf, brings over 300 more references to the points of sale – comments the CEO – and which is an exception to our rule. More freshness and more localism, with 130 direct butchers, despite the fact that meat consumption is decreasing, with local producers and breeders who strengthen the link with the territory”.
The project was born with Jaeger and, perhaps too ahead of its time, had stalled. Now it has been revived and is bringing value: the shops with delicatessen, dairy products and the hot counter are growing by double digits because the customer is able to do their entire shopping at Penny. Therefore these services will be present in all new stores, and will be included during the renovations if they are not yet there. This project is leading us to see Italy as a case history for Penny. Among the most representative stores of the new format is that of Palermo, and Sicily is the one that is giving the greatest satisfaction.
The new professionalism also involves a significant commitment in the field of human resources, there are 400 butchers and 300 gastronomes present in the shops.
Penny’s 30th birthday campaign
The new communication campaign for the 30th anniversary it has customers as its protagonists, with their needs, tastes and foibles. It is based on sympathy, empathy, identification thanks to the small challenges of daily shopping which always find a positive solution from Penny. These are 5 TV spots and another 5 for social media broadcast from May 1st, slogan “The shopping you like”.
Positioning: “right shopping, close to home, to save money”. Beyond convenience there is simplification and closeness, listening, innovation and responsibility. “The market data says that we are intercepting a new flow of customers – he explains Bruno Bianchini, marketing director – +32.5% according to Gfk, many new families. Those already customers are 4.5 million. The net promoter score, the recommendation index, exceeds 30%, above the discount average. We are chosen, interviews with consumers say, because shopping is easy, we give quality to fresh products, Italian products, MDD but also our favorite brands.”
The media approach today sees greater commitment than in the past on external media such as TV and radio, alongside digital, for awareness. Then the Penny FM radio which broadcasts live in points of sale alongside promotions and editorial content centered on well-being and nutrition.
After the campaign, a competition that rewards with gift cards and spending for a year, through the purchase of sponsor products and with exclusive offers and promotions for customers.
The Penny’s loyalty program it works on points, collected while shopping and redeemable with discounts and free products. There are 2,200 active cards, digitized and in the app, +40% participating customers.
The Penny Wallet is the system of discounts and benefits linked to exclusive partners which adds further advantages to those of the card.
The flyer experience continues, increasingly digital, with over 100,000 subscribers receiving it in the new WhatsApp channel (opened in 2023).
Marcello Caldarella, corporate communication manager of Penny Italia
Pasquale Nicastro, purchasing director
Piero Pisoni, human resources director
Monica Dimaggio, pl and sustainability manager
Tags: Penny Italia grows format relaunches
