There are two things that the consumer is not willing to negotiate when doing their daily shopping at the supermarket. The first is price. The second is distance. They want to pay less, but they also want the supermarket close to them. They want more offers and the store near them or, increasingly often, their shopping at their door, quickly and with one click.
The equation is not simple. Proximity and speed come at a price. And some are willing to pay it, buying time, hence the sharp rise of online.
For the chains, the equation is equally difficult. “Cheaper” requires scale and lower cost. “Closer” requires more and smaller points, a denser network and a more expensive last mile.
Between these two variables AB Vassilopoulos has been moving in recent years. The new warehouse in Elefsina is also part of this strategy, the significance of which goes beyond its 35,500 sq.m. and 35 loading and unloading ramps.
The goal of the new storage and distribution center, which was inaugurated yesterday in the presence of the ambassador of the Kingdom of the Netherlands to Greece, Barbara van Hellemond, is to move more products, to more points, at lower cost.
However, the big battle is fought on the shelf. And not only through the National Initiative for price reductions, about which there are doubts in the market as to whether it will maintain its momentum until December. AB directs 250 million euros annually to prices and promotional actions. But it comes at a cost. In 2025 its gross margin decreased by 0.7 percentage points, to 24.6%. “This cost our balance sheet”, said CEO Nikos Lavidas (photo).
Price, however, is only one part of the equation. It goes through loyalty, personalized offers and the 6-euro AB Plus value vouchers. The company plans to connect loyalty with delivery platforms, so that the customer can collect points even when buying through third-party platforms. The electronic channel has already reached close to 4% of AB’s total turnover and 30% of these online sales are made through fast delivery.
If price is one front, the other is proximity. Small points are today among the fastest-growing parts of the market. According to the data presented yesterday by AB’s management, their growth rose from 6% in 2024 to 9% in 2025 and is moving at +8% in 2026. This also explains the major shift to franchising.
Only last year AB added 46 new franchise stores, compared with 2 new corporate points. Franchising allows it to enter neighborhoods, smaller cities and tourist areas more quickly. The independent partners of the network freely determine resale prices, without imposition by the company as provided for by the competition framework.
Today the network numbers 715 stores. The 230 corporate, 471 franchise and 14 ENA, with the goal for franchises to reach 500 by the end of 2026. “We are looking at 30 new stores in new areas and investing in the upgraded consumer experience”, said Nikos Lavidas. AB has also submitted a proposal to Masoutis for six stores, five in Halkidiki and one in Crete, and is waiting.
The expansion of the network also brings to the fore the cost of supplying it. With the new warehouse in Elefsina, AB estimates that it can reduce transport costs by about 10%. And this carries particular weight in a business with sales above 2 billion euros but tight margins. Last year turnover increased by 3.5%, while adjusted operating profitability strengthened by 2%, to 27.3 million euros. Cash reserves fell by 14.8%, to 59 million euros, mainly due to investments.
Accounting losses amounted to 25 million euros, something that management attributes to a significant degree to write-offs of fixed assets and the cost of transformation of the network. Overall, AB invested 52 million euros in 2025 in stores, infrastructure, distribution and technology, while the investment program is expected to move at roughly the same levels this year as well.
Self-checkouts alone have required about 11 million euros and electronic price tags another 18 million euros. As for the return to net profits, it is estimated that this may be achieved within 2027.