Greek supermarket chain Sklavenitis’ 11 acquisitions

The Sklavenitis supermarket chain is proceeding with its second acquisition in 2022, acquiring control of 4 Gegos stores in Porto Rafti (2 points of sale), Markopoulo and Loutsa, while seven months ago it had signed an agreement to purchase 9 of the chain’s 11 SEP Markets stores , which it operates in Ioannina, northern Greece.

This is the 11th deal of the leading domestic retail player in the 52 years since its establishment in Petralona as “S. Sklavenitis & SIA OE”, increasing the distance that separates it from the “big 5”.

The newly acquired stores, which belong to the middle category in terms of size, are to be gradually rebranded, with the handover set for the last week of January 2023. The new signs will also bear the Gegos brand, while the 130 employees of the 4 Gegos stores that are being acquired by Sklavenitis will join the human resources of the latter.

It is noted that the Gegos store in Argyroupoli, which opened in 2019, as well as the one in Keratea, do not come under the control of Sklavenitis. These two stores operate in properties leased from Gegos. For the specific stores, Gegos is in negotiations for their distribution to other supermarket chains.

It is recalled that AB Vassilopoulos had also expressed an interest in Gegos, however any discussions that had started did not come to fruition.

Based on reliable information, the common goal of both the sellers and the buyers was to keep the chain in Greek hands.

The East Attica chain Gegos saw its turnover fall by 6.95% in 2021, to 19.07 million euros from 20.5 million euros in 2020, while the gross profit margin increased from 24.9% , to 27.2%, as the company’s profitability also increased, both before taxes (+20.6% to 927,370 euros) and after taxes (+21.9% to 719,549 euros).

It is worth noting that in 2021 the company’s staff was significantly reduced, from 191 people to 173.

The benefits of the agreement

With a turnover that will exceed 4 billion euros this year, Sklavenitis acquires a larger “footprint” in Eastern Attica, an area that, apart from permanent residents, also has significant tourist traffic, mainly due to the many holiday homes that Athenians maintain there.

With the acquisition of the 4 Gegos stores, Sklavenitis automatically doubles its network in the area in question, as it currently has 4 sales points in Loutsa, Kalyvia, Markopoulos and Porto Rafti. In addition, in the wider area of south-east Attica, it also has stores in Koropi (two locations), Lavrio and Anavyssos.

Sklavenitis’ new expansion move comes at a time when inflationary pressures have upset the balance in the supermarket industry with the big players scanning the “middle shelf” looking for expansion opportunities, both in areas where they do not have a presence, or they have a strong presence, as well as in tourist towns and islands.

In total this year more than 140 local chain stores have changed hands, with mobility in the organized retail sector continuing to be brisk.

The timeline of the 11 acquisitions

The impressive size of Sklavenitis with 441 stores, 4 eMarket order distribution centers and 6 distribution centers in Greece, but also with a presence in Cyprus, was “built” through organic growth and also through acquisitions.

The first deal was made in 2007 with the family retail business acquiring 18 stores of the Papageorgiou chain, most of which are located in the southern suburbs of Attica.

In 2010 Sklavenitis acquired 10 stores from the bankrupt Atlantic chain.

In 2013, through agreements with the Doukas, Extra-First and Fthina and Balaskas chains, it acquired 18 stores.

In 2014, 100% of the shares of Makro Cash & Carry Greece were acquired, which operates 9 wholesale stores in Athens, Thessaloniki, Patras, Larissa, Volos, Heraklion and Xanthi. A year later MAKRO was renamed The Mart.

In the same year, it acquired 60% of the Chalkiadakis chain from Veropoulos for 25 million euros.

On March 1, 2017, after many months of negotiations and the signing of an agreement for the consolidation of the Marinopoulos Group, the group’s 400 stores were added to the company’s network.

At the beginning of 2020, it proceeded with the acquisition of the electronic supermarket caremarket.gr, on which the eMarket, the chain’s e-shop, was “built”.

At the end of May this year, the absorptionby Sklavenitis of 9 of the total 11 stores of the Ioannina chain SEP Markets – Papadopoulos.

Meanwhile the agreement with Gegos was signed yesterday.