Musgrave operates in Spain through two divisions: the Cash & carry Dialsur and the supermarkets Dialprix and Dicost. Agustín Turiel, director of purchases of the company, explains in this interview the tendencies that reign in its linear impulse products and the plans of the firm to reach in 2020 a turnover of 250 million euros through the “development of our brands Commercial “. A strategy based on an important plan of transformation of their teaching
DN.-First of all, we would like to know the trajectory of the company since its creation more than 100 years ago. What events have marked the history of Musgrave?
Musgrave España is part of the Irish Musgrave Group, a family business that emerged 140 years ago and is now a leader in its home country, both in the retail and wholesale sectors.
The history of Musgrave in Spain runs parallel to that of the group, and has its origin in Elche in the year 1912 with the Trade of food commodities, a long trajectory until the present time that has consolidated both family businesses.
Our company which was originally a distributor of food of the Southeast, S.L. property of the family Elche Lopez, was acquired by Musgrave Group in the year 1994 and, since then, has grown, becoming one of the leading regional operators in The Valencian Community and Murcia. This year we also celebrated the 25th anniversary of belonging to the group.
DN.-“The spirit of enterprise, integrity and innovation” are key to Musgrave’s success, could you explain the main features that define the company’s business model? What are the pillars of the company’s business philosophy?
This position of the company has been achieved through solid values of company that shares our group such as honesty, long-term relationships, hard work, achieving results and sharing, as well as the values that define our brands . In the case of Dialprix As a supermarket of proximity, it has as a brand value the ‘ freshness in detail ‘ and, therefore, has always stood out for the development and innovation in the sections of fresh products.
Every year, we develop specific projects in each of the sections looking for how to improve our offer to the consumer. And, in the case of Cash & Carry Dialsur,We specialize in products for hospitality and food business.
“We market more than 300 references in the impulse categories, seeking to offer the consumer variety and brands in the same”
DN.-How many establishmentsCurrently make up your commercial network? What are your main expansion plans in Spain?
Currently, we are serving wholesale customers through our 18 establishments located in Valencian Community and region of Murcia, which makes us a reference operator in these provinces.
Through Dialprix We came to the same provinces as with the Cash & Carry Dialsur And, in addition, we have presence in the Canary Islands with 18 supermarkets of the total of 101 that we have today, of them 70% are franchises. Dialprix It is a shop of proximity, with an average size of 500 square meters and with ample presence of fresh product served through counters and by professionals. This factor is differential and so we are recognized by our customers.
DN.-Musgrave Spain has marked the goal of reaching 250 million billing in 2020, what are the levers that will favor this growth?
For this year, our plans are focused on the development of our trademarks for further market adaptation. This is the key to the reform and conversion plan for all the supermarkets Dialprix To ‘ super freshness ‘ and that includes eight supermarkets Dialprix and two of our wholesale centers Dialsur. In addition, it is basic the growth by new points of sale, of which we planned six stores Dialprix and two centers Dialsur, of which one of them has already opened in the month of February in the population of Murcia in Lorca.
DN.-How do you rate the changes that the distribution is experiencing?
There are profound changes in distribution and we will have to learn to compete in a mature market and without population growth.
For this future, we are working to differentiate into three of the main factors. The first one is the assortment of products and their price, we are immersed in the continuous improvement of our products with attractive prices for the clients, of a greater presence of own brand products so that it supposes to the consumers a good alternative of Savings and, finally, with interesting offers from the first unit of purchase.
El segundo factor es el desarrollo de una oferta saludable, donde este año hemos incluido una oferta de producto ecológico en nuestras tiendas y hemos identificado los productos sin gluten y sin lactosa, para permitir al cliente una mayor facilidad de compra.
And finally, the development of the convenience, with the start up of new elements like coffee ready to consume in the own establishment or with takeout, that we launched in one of our establishments more than five years ago and that we are Redesigning, aiming to extend it to a larger number of locations.
DN.-How do you configure the product range of the company?
We want the consumer to make the decision about the products you want to buy, so we offer a wide assortment of brands including our own shows that are an attractive saving option for their relationship quality and Price, without the intention of excluding the main national brands. Today we have about 20% of our sales with our own brands.
DN.-How important are the products of impulse in the assortment?
If we take into account the categories of impulse from a broad point of view, (sweets, candies, snacks, ice creams…) are an interesting quota to be taken into account within the ambient products, besides being an important source of the profitability in our In many cases the increase in the number of Ticket Medium that we both fought the operators.
DN.-The concern for health is booming as one of the most relevant consumer trends in recent years, how are they adapting to new consumer demands?
In addition to adding new information in our labelling that helps our clients to buy in our establishments in an easier and simple way, we are incorporating new options in our lines that seek to satisfy these new tendencies. As an example, in the last year 2018 we have incorporated more than 100 new references of organic products.
DN.-How many impulse product references are sold?
Currently, we sell more than 300 references in these categories of impulse, seeking to offer the consumer variety and brands in them.
DN.-What are the main qualities that usually require your suppliers of impulse products?
We need serious suppliers, who meet their quality and service commitments, because in this market the key is that our customers find the precise product in the right place and when they need it.
DN.-Do you have your own brand in the Impulse products category?
We work with our purchasing Central, Euromadi, through brand development, to have a complete assortment with the brand Highness. In addition, a very important work of optimization of the range is being developed, so that we can more and more satisfy our customers with products that adapt better to what they need today.
DN.-What trends do you appreciate in the consumption of impulse products?
They are categories with very stable growths, without great sways. What is reflected in the market is the innovation of products that seek to offer healthier alternatives to consumers and reflect this general market trend of incorporating healthier products.