Mercadona 2013

Mercadona 2013

Published: July 2013
Publisher: ResearchFarm Ltd
Product ref: 208185
Pages: 128
Format: PDF
Delivery: Immediate download

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While Inditex is dominating the clothing sector, Mercadona is the equivalent in Spain’s grocery retailing, and the two business models and strategies share a surprising number of core elements.

While almost all businesses in Spain have felt the brutal impact of the crisis, the recession, far from undermining Mercadona, has actually strengthened its dominant position further. What’s more, the retailer has stormed through the worst downturn Spain has gone through since 1929.

Mercadona sales have not only grown rapidly and outpaced its direct competitors in Spain, but Mercadona also outperforms most other leading European retailers. We believe that Mercadona’s success story has no parallel in European grocery at the moment.

The retailer has a unique business model and culture which is deeply embedded in every stage of the value chain. From its supply chain operation to research and new product development, its logistics infrastructure or its workforce management, Mercadona’s business model stands out.

Despite avoiding special offers and deals and hardly any advertising the grocer has become one of the most popular brands in Spain. The private label range is synonymous with low and stable pricing and is perceived as high-quality by shoppers. Mercadona’s range of private label health & beauty and cosmetics products have seriously impacted the premium channel and its brands have become the biggest sellers in many grocery categories Spain, outpacing the biggest brands.

However the success is not only down to its unique business model, the retailer has also taken decisive action and bold measures when the crisis hit Spain in 2008, which have resulted in further market share gains.

As the company prepares to expand to other European countries, we believe it is time to provide you with an in-depth analysis into one of the most successful business models in the grocery industry worldwide.

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