Luis Felipe Costa (Agriluga): “The goal is to have 50 stores in 2025” – Hipersuper

Agriloja has plans to open four stores this year. The goal is to reach 50 units in 2025, with an expansion plan to open special and premium stores and acquire brands with a similar concept.

What was 2021 like for Agriloja?

Last year, we set another sales record in our store network, reaching 70 million and we also opened seven new stores. We arrived in the Algarve and opened a second store in the Azores. We feel the brand is increasingly present and closer to the consumer, either through its proximity to physical stores or through our recently launched online store.

We currently have 32 stores, which arrived in Setubal in February.

What are the prospects for 2022?

The implementation of our expansion plan continues at a good pace, with the goal of opening four new points of sale this year. The goal is to reach 50 stores in 2025, to get closer to the “buyer persona” in all regions of the continent and islands.

We also continued to invest in renovating some of our stores to improve the visiting experience.

What is the investment in opening new spaces last year?

In 2021, we opened stores with different sales and investment areas, between 600 thousand and 1 million euros per project, including equipment, information systems, inventory, team training and communication campaign.

What strategy did you have to expand the badge?

The chain store expansion strategy includes sustainable growth through the opening of own and licensed stores. Our expansion project is also based on acquiring other brands with a store concept similar to that of Agriloja, and later transforming them into the concept that defines us.

Is expansion in favor of investing in owned enterprises or franchisees?

The expansion is based on two aspects: special and premium stores. Because Agriloja is a store concept, but it is also a brand that we run and create. We have a business model with great potential for growth, tested and proven, which eliminates business risk and facilitates access to finance for entrepreneurs who fall in love with the banner.

In which regions of the country does the pennant have the greatest growth potential?

Across the country, we find DIY (do-it-yourself) consumers or professionals devoted to animals and plants, who live in homes. This consumer profile should have Agriloja on its side. Therefore, our store concept is located in densely populated areas, where you can feel the countryside. Last year we opened our first store in the Algarve, but we believe the area still has huge potential to create more stores.

We also intend to strengthen our presence on the North Coast, where we have identified the market and brand interest. In fact, we are sure that we can be present in many other regions of the country.

Agreluga 1How have physical sales spaces evolved in terms of design, organization, planning, and shopping experience?

Over the years, we have tested and developed the layout and organization of the store so that the visiting experience becomes more intuitive, practical and positive. We created in-store promotional and communication solutions. We have changed product presentations and innovated some processes to keep pace with modernity, always maintaining the traditional roots of a close relationship with the customer.

How would you define your shopping experience today?

It is a visiting experience in which life is felt by the presence of pets for sale, as well as poultry, the color of ornamental plants, and the smell of herbs and vegetables.

Our online store (shop.agriloja.pt) is another point of contact with the brand and complements the sale in physical stores.

How do you feel about the launch of the online store?

Online store sales are growing slowly because digital consumers behave differently than those who visit our physical stores.

Our online store is another sales channel for physical stores and allows us to learn about who we are and what products we sell, and to reach consumers where we do not have a strong presence through a physical store.

Agriloja’s turnover totaled €70 million in 2021, which is an increase of €8 million over the previous year. What is the expected development this year?

We expect to continue to grow while maintaining the confidence of our customers, considering the cycle of new store maturity and continued expansion. The past two years have seen consecutive records and we expect to continue at this pace. Mature stores are already running very fast and growth will be organic, while new stores will have a more obvious positive development.

What factors were at the origin of this growth?

Increasingly, the brand is gaining space in the national market and being a consumer reference. This is the result of the strategy applied, our ability to adapt to the market, the dedication of our teams, customer appreciation, and increased brand awareness.

Agriloja is committed to developing its own brand products. What is the strategy for private branding?

Agriloja’s brand products are positioned with quality and trust at the best prices. Customers already know the value of our brand products.

We have around 500 private label items that integrate scopes into strategic areas and are developed in partnership with our selected warranty suppliers. The main highlights are the most complete types of foods for livestock and pets.

What are the key consumer trends in your sector?

Consumer trends are diverse. From creating vegetable and poultry gardens for private consumption, with the biological aspect, the importance of companion animals in delighting families and appreciating outdoor space and garden homes to sharing moments of recreation and coexistence.

All of these areas have growth potential and the brand is ready to respond to these needs with new products in each group and by diversifying the offer at the best price.

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