Sri Lankaâ€™s Cargills to spend more on supermarkets, logistics
ECONOMYNEXT – Sri Lanka’s Cargills (Ceylon) group said it intends to make much of its capital spending next year on further expanding its retail business, focusing on both front-end stores as well as back-end logistics.
Cargills retail sector consists of the group’s Cargills Food City supermarket chain, the island’s largest modern trade retailer, with 353 outlets spread across all districts.
The stores two formats, Cargills Food City supermarkets and Cargills Food City Express minimarkets, are supported by logistics and distribution centres that handle fresh and dry goods.
“A larger share of the group’s capex in the next year will be invested in the retail sector, driving new store growth, store re-modelling and back-end enhancements,” Cargills told shareholders in its latest annual report.
The group aims to remain the lowest cost operator in the food business, it said.
Cargills group expects to break ground on a logistics centre during the year, which is expected to be completed in 2020.
“Logistics is an integral component in the competitive advantage of the retail channel, and the Cargills Group maintains a logistics network encompassing dry, chilled and frozen distribution,” the report said.
(COLOMBO, 04 August, 2018)