“Despite the recent disturbing news concerning summer consumer spending data, we believe that it is wrong to imagine a never-ending recession – affirms Marco Pedroni, Chairman of Coop Italia in commenting the presentation of the 2014 Coop Report data -. On the contrary, we believe that 2015 can be the year of the reversal of this very negative trend, as long as steps are taken to support domestic demand with measures in favour of the weaker classes, with structural investments to modernise the country, with policies to reactivate credit to businesses. In the medium term, the revival of a policy of reforms is crucial, starting with deregulations and anti-monopolistic measures that generate positive effects on the spending power of households (medicines, energy, financial services).
Finally, the Ancc-Coop report highlights that the number one problem of the country is the generation gap. Over the past 10 years, the incomes of couples under 35 years of age have decreased by 17%, while those of the over 65’s have increased by 41%. It’s no surprise, therefore, that 2014 has been the year with the fewest births in Italy. But without children there is no recovery of expectations, there is no increase in consumer spending, there is no future. In the ‘one thousand days’ programme it is essential to focus on a new policy to support new families and the birth rate: this is the shock we need”.
“The distribution sector – continued Pedroni – is under significant pressure, deriving from the decrease in consumer spending and greater competition. In Italy, the sector still has a low concentration compared to the major European countries; greater concentration will be inevitable in the coming years, with growth in efficiency and average size of the main players.
We, the leading Italian distributor of consumer goods, believe that the main response, even before quantitative growth, must be qualitative growth, profoundly innovating the way of doing business. We are working on major changes, shifting value from promotions on the shelf to those that let the consumer choose without being forced (the “you choose” mechanism); simplifying relations with industry and contractual conditions, aligning them with those in place in the rest of Europe; planning significant growth of private label products with the objective of rapidly exceeding a share of 30%. A strategy with affordability at its core, which is a primary duty of the Coop, but always associated with safety and quality for consumers; households who spend less as a result of our action. For Coop, 2014 is a year of preparation and, in part, bringing forward this important turning point which we believe will do not only us but the entire sector good”.
