Following losses of EUR32.5m (US$41.47m) for FY 2005, Spanish supermarket chain Caparbo has announced a three-year strategic plan designed to boost sales.

This is the first time in the group's history that it has registered a loss. The chain witnessed an 18% drop in sales during the fiscal year, with sales at its 300 outlets declining to EUR2.3bn.

Caprabo said that it plans to make a number of changes to its format to reinvent its image. It will widen aisles, broaden the range of products carried and reorganise the positioning of different sections in its stores.

The group said it anticipates spending EUR145m refurbishing stores between 2006 and 2009. Dutch company Jos de Vries has been retained to design and execute the refurbishment.