Sqrups, the unbeatable prices arrive at Fellow Funders
Sqrups began its activity in 2012. Its work consists of obtaining food, hygiene and bazaar products (chairs, blackboards, stationery, etc.) at a very low cost. The company mainly takes advantage of two factors: the discontinuation of the product (hygiene and bazaar), and the approaching expiration date (food).
Everything under the scale economies that offer better wholesale purchases, and an accessible network of stores in popular neighborhoods. Thanks to this, they continue to offer products to their customers at a very low price, without giving up a high margin.
It is estimated that one third of the food produced ends up in the garbage nowadays… So, a very important aspect to highlight is their proposal, since it helps both suppliers and consumers. Suppliers would be getting rid of products they cannot sell, whereas consumers would be getting products they need for a lower price. Moreover, Sqrups is a beneficial factor for the environment by reducing food wastage.
Iñaki Espinosa, CEO and Head of the Purchasing Department, holds a Master’s degree in International Business Management. He has more than 15 years of experience in the retail sector, specifically in importing and distributing consumer products related to the stationery sector. His knowledge of logistics has been fundamental to be able to develop this business model, in which timing is key to the smooth running of the company.
Marcos Schmah, COO and Head of Own Stores and Franchises, holds a degree in Physics, Marcos has been part of the project since its inception. He has more than 15 years of experience in point-of-sale marketing, which has allowed him to design his own distribution plan for the stores and franchises, with the objective of making the store itself the best marketing tool for the company.
Sqrups focuses on three types of products:
- Food: this sector represents 55% of sales; however, the company wants to increase this to 65%.
- Bazaar: this sector includes a wide range of products such as blackboards, tables, stationery, books, office supplies, etc. It currently represents 35% of sales, however, the aim is to reduce it to 20% due to its low inventory turnover and higher warehousing costs.
- Hygiene and drugstore: this sector represents 10% of sales, including everything related to personal care and hygiene products.
There are currently 45 Sqrups stores nationwide, although there are plans to open 5 new stores of their own in Madrid.
Food waste management
More than 7 million tons of food are wasted annually in Spain, costing 3,000 million euros per year. This results in an environmental impact that affects all links in the chain, especially households and restaurants, where between 21% and 58% of food is wasted, respectively.
These unfortunate situations can be improved thanks to projects such as Sqrups, a company dedicated to selling products close to their expiration date at a lower price in order to help people in need.
Sqrups has turned to Fellow Funders to raise €500,000 in its funding round.
Why should you invest in Sqrups?
- The food and hygiene products found in Sqrups stores are discounted between 30% and 60% off the market price. On the other hand, in the case of bazaar products, this number ranges between 50% and 80%.
- In food, the gross margin is usually between 20% and 30%; in hygiene between 25% and 40%, and in bazaar products between 40% and 60%.
- It is an acyclical business model, which can even see its sales increase in the downturns of the economic cycle thanks to the attractive prices it offers its customers.
- During its years of activity, Sqrups has managed to optimize its logistics in order to capture a larger market share and thus improve its margins.
- It currently has agreements with suppliers that are highly recognized at a national level.
- The in-store conversion rate is 90%.