FRANCE: Systeme U to invest after positive 2016 | Progresiv
France-based Système U has set out its investment plans after announcing sales rose 1.5% to 19.2 billion euros in 2016. 
The results were announced by Systeme U’s chief executive, Serge Papin, who said that total sales rose 1.5%, while like-for-like sales were up by 1.0%. Papin said that the results, which enabled it to gain a small amount of share during the year, were boosted by a strong second half of its financial year. Papin said that Systeme U enjoyed the ‘best December in its history’, with sales rising 2.7%. The second half was aided by a reappraisal and reworking of its promotional activity, following a weaker first half where competitors Carrefour and Leclerc invested heavily in promotions.
Papin said that although Système U and Auchan have called off their merger, the two would continue, and indeed extend, their buying agreement. The arrangement will now include buying of private labels, non-food items and to goods not for resale. Systeme U will also benefit from Auchan’s other buying agreements, such as its alliance with Boulanger for the purchase of electrical goods.
Looking to the longer term, Papin said Système U was targeting sales of 25 billion euros in 2020. To hit that target he said the cooperative would continue to open stores and attract more franchisees. This will also be supported by investing between 40 million euros and 60 million euros annually to 2022 as it looks to reorganise its supply chain, with a further 50 million euros to be spent on developing its online channel. However, Papin stressed that stores would remain the cooperative’s focus. (www.igd.com)
