April 22, 2025
Science

17 comments

  • October 24, 2024
  • 0

There isn’t much room for doubt. Mercadona’s footprint on the map of Spanish supermarkets is huge and growing. Its market share exceeds 25% and it has a huge

17 comments

There isn’t much room for doubt. Mercadona’s footprint on the map of Spanish supermarkets is huge and growing. Its market share exceeds 25% and it has a huge advantage over the industry’s best-positioned competitors such as Carrefour, Lidl, Eroski or Dia. Neither one nor the other means that the Juan Roig chain is the only chain that managed to strengthen its position throughout 2024 after turbulent years marked by the pandemic and rising prices.

There is a group that resists and strengthens its influence until it gets a significant share of the cake: Super regional. And this is no coincidence.

What do the numbers say? On the whole, regional supermarket chains are stronger today than they were a year ago. This is reflected in at least one new report from Kantar, a market research firm. According to their calculations, in August such works involving Consum, Bon Preu or Gadis already reached a value share of 17.7%, representing an increase of six tenths.

New Leganes Store 2048x1408e

More and more available. “They are increasingly cementing themselves as a recurring alternative, as evidenced by the fact that 5% more baskets are made in such chains compared to last year,” says Bernardo Rodilla from Kantar. At a regional level, the report shows growth in “all regions of the country”, but particularly highlights the evolution recorded in the Canary Islands (+1.3%), Andalusia and the northwestern region (+0.9%) or the Levante. An increase of 0.7% was confirmed.

Are there more indicators? Yes, something revealing, the one about the commercial surface. Retail Data data published a month ago by Asedas, the Spanish Association of Distributors, Supermarkets and Supermarkets, reveals that the 25 main regional chains have grown quite significantly since 2020. This is despite the difficulties that have marked the last four years, including both the pandemic and the inflation crisis aggravated by the war in Ukraine.

More precisely, the report reveals that the commercial space of the main regional brands grew by over 10%, twice the industry average, which increased by 5.4% in the same period. Asedas’ results also show that there are some heavyweights among regional chains: Ten main operators control 23% of outlets and 15.5% of surface area. If the focus is expanded to the top 25 operators in the “regional leaders” group, their share among stores increases to almost 38%.

Lachanapeq1e

Which brands are we talking about? The list prepared by Asedas includes Coviran, Gadisa Retail, Condis, AhorraMas, Bon Preu, HD Covalco, Uvesco, Froiz, Dinosol and Alimerka. For example, Gadisa stands out in Galicia, Dinosol and Alimerka have a main weight in the Canary Islands and Asturias respectively, and if we talk about Cantabria, the biggest reference is Semark Lupa.

But the most prominent example in the sector is the case of Mercadona, a Valencian firm that started as a regional chain 25 years ago but is now among the largest individual operators in Spain, with more than 1,600 supermarkets spread across much of the world. It has a significant weight in the country and national market. Asedas estimates that it accounts for 16.7% of the total commercial space.

Weight of white label. According to Ignacio García Magarzo, president of Aseda, the predominance of regional chains in Spain is interesting for several reasons. Firstly, because it makes the country different from others in Europe. Secondly, in his opinion, this constitutes a “huge advantage” for consumers when choosing between options. “Spain is a very diverse country and knowing how to adapt to the local consumer is key to the distribution business model.” The power of regional chains is also evident on another front: that of private brands.

The expansion of private labels, which have increased their market share in recent years, coinciding with the inflation crisis and the open commitment of some chains such as Mercadona, Lidl or Aldi, seems to have eased. At least that’s what Kantar WorldPanel figures show; These figures reflect that if its share increases by two points between 2022 and 2023, the increase between 2023 and 2024 is already 1.3%.

Although there are many fundamental reasons that explain this trend, one of them is the strengthening of regional supermarket chains, where the brands of large manufacturers have a better position.

Ali

“More moderate”. “The growth of the distributor brand is now normalized and more moderate,” Rodilla said. Spanish. In September, Kantar pointed out that the market share of private label brands was over 44%, while other sources indicate that their weight in total sales in terms of value is higher and will currently reach 48.5%. If we look at food alone, the “footprint” of these distributor brands would be even higher at 49.5%.

Regional chains have not increased the weight of private brands on their shelves, but they cannot reach the importance of other chains. “If the super regional store trend continues, we can expect a certain slowdown in the consolidation of private label stores,” industry insiders say. Daily Five Days reveals a fact that helps understand this: one in four euros spent by consumers on manufacturers’ brands is recorded in regional brand stores, making them a refuge from private labels.

“From the neighborhood grocery store to the neighborhood supermarket”. For Kantar, which sees the transition of small businesses to a new model as a “natural step”, it is no surprise that regional supermarket chains are strengthening their dominance in the sector. “From neighborhood store to neighborhood supermarket.”

Rodilla explains: “They grew in all conditions. They are strong and fresh in proximity, which puts them in the best position to benefit from the transfer from neighborhood stores.” Five Days. This strength is what allowed it to reach a share of 18% and become the main rival of the giant Mercadona as a group, regardless of the different brands.

But… Why this growth? Due to a combination of many factors, one of the most important was already Rodilla. Kantar, Consum, Gadisa, Froiz, BM, Bon Preu, Bon Area, AhorraMas, El Jamón… stand out “for their commitment to proximity and the producer’s brand,” he says. But there is another key that is equally, if not more, relevant: In a way, they manage to attract customers who no longer go to the “specialist channel” to make their purchases. In other words, they benefit from consumer transfers from fishermen or butchers.

“This growth is based on two differentiating factors: the proximity of these chains to the customer, which allows them to benefit from the transfer from specialized stores and greater protection of the manufacturer’s brand,” comments the Kantar expert. Spanish Newspaper.

transfer effect. People are increasingly Super Regional chains looking to buy fresh produce are taking advantage of proximity and offering a similar offering to what they’ve been able to find in their neighborhood stores so far.

“They are betting on proximity, and along with good positioning in perishable fresh produce, that also works, there is a transfer from specialty stores, neighborhood stores, to the supermarket,” says the expert at Business Insider. And not only that. Chains such as BM, Gadis or El Jamón have expanded into new markets.

Pictures | Gadis, AhorraMas, Coviran and Alimerka

in Xataka | Brands ranked the supermarkets that were least committed to their new products. They give 0% to Mercadona

Source: Xatak Android

Leave a Reply

Your email address will not be published. Required fields are marked *