How is the Spanish market evolving?

Date : 06 May 2021

Lucy Bellotti

Retail Analyst

After a period of logistical issues, which led to most retailers being unable to provide promotions or offers on most everyday items, market leader Mercadona has revealed plans to lower prices to meet its main strategy of offering shoppers everyday low prices.

Separately, Bon Preu and Plusfresc announced 2020 results and 2021 investment plans.

Mercadona lowers prices, sets its sights on Sevilla

Mercadona announced it is lowering prices, claiming it plans to offer shoppers reductions of between 10% to 25% on fresh food and some packaged products. The retailer said ‘lower prices continue to lead our strategy, to have competitive prices without entering into promotional battles or aggressive offers, which in the medium term do not benefit the sector.’

Furthermore, Mercadona is set to invest in a new ‘hive’ (online-focused distribution centre) in Sevilla’s Higuerón Sur. Mercadona is waiting for planning permission for its latest online site. The hive is expected to support the retailer’s online shopping capacity in Seville and its surrounding areas, although is not expected to open in 2021 after the retailer’s president, Juan Roig, said no more hives would be opened in the year.

Bon Preu food sales increased by 20%

Bon Preu closed 2020 with a turnover of €1,625m, an increase of 9% on 2019. The retailer said food sales grew 20%, while its online channel specifically saw sales advance 118%. The online channel’s growth was supported by increased home delivery capacity and the addition of 17 collection points.

Bon Preu plans to invest €150m in 2021, an increase of 7.1% on 2020’s figure. It will invest in opening new stores, which includes Esclat in Badalona, Sant Pere de Ribes and new Bonpreu supermarkets in Mataró and Cassà de la Selva. Separately, the group plans to expand the coverage area of its online channel, so it reaches more neighbourhoods, and add more collection points.

Plusfresc enjoys increased turnover in 2020

Plusfresc said it finished 2020 with a turnover of €195.5m, an increase of 15.5%. The group aims to continue to focus on digitalisation, omnichannel and sustainability. Francisco González, Plusfresc’s CEO believes that ‘online shopping is here to stay and we want to continue improving this service to provide the best experience for our customers.’

Furthermore, it set out 2021 strategic plans, which will focus on expansion projects. It is intending to grow in the Lleida province, as well as focusing on its current network in network in Barcelona, Tarragona and La Franja.

 

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