Mercadona is still a leader but it is difficult for it to adapt to new trends: could its decline come?

Mercadona is the leading supermarket in Spain indisputably. According to Kantar data, it has a market share of more than 25%that is a quarter of the purchases made in our country are in Mercadona.

And although its competitors have grown at a higher rate in the last year (they have more room for growth), the company founded by Juan Roig is still in the running, unbeatable. But… until when?

The pandemic came to hair to grow like foam, but already last year earned 6% less because of the issue of inflation, which is even worse this year. For this reason, Mercadona has slowly raised its priceswe already analyzed it a few months ago here.

A) Yes, It is no longer the affordable supermarket that we knew in the beginning and that has generated so much furor in these years. No, Mercadona is no longer what it was. And this could mean the beginning of a decline that Juan Roig will surely not like.

More expensive and more inaccessible

As we say, Mercadona is no longer what it used to be and many people are leaving this supermarket aside in favor of other chains. Price is the first reason. In a context of inflation like the one we have, people look more and more at the price, and there are other chains that are much cheaper than Mercadona.

The Valencian company is raising prices a lot, and families, who have less and less to spend, do not think about it. They go where everything is cheaper. Even if that means losing quality in your purchase. Because things as they are, Mercadona’s products are increasingly of higher quality. And that is paid.

Another aspect that can play against the chain is that it continues to cling to closing its establishments every Sunday and on holidays. Although in summer it does open on some Sundays in coastal areas or with a high number of tourists, it is normal to never open. Something wonderful for your employees, but not so much for the customerwho is used to being able to shop on Sundays until at least noon in stores like Carrefour or Día.

This immovable policy in a context of increasingly pressing trade liberalization can cause adverse effects, since loses part of the slice that the supermarkets get with Sunday purchases (and literally it is quite a lot, because many people in big cities especially shop on Sunday, when free).

One of the most critical decisions that has always earned him is its predominance of the white label. Mercadona wants to sell its products, not those of others, and for this it allocates a lot of money to having good suppliers that serve it almost exclusively. It has achieved great quality with its white label and does not want competition within its establishments.

understandable, but leaves very little choice to the customer. In other chains, the private label coexists with that of the manufacturer without any problem, but in Mercadona it is practically impossible. And if there are other brands, it is because they still do not manufacture the same products of their own.

Another issue is that it is costing him to change the mentality of society in pursuit of bio and ecologicalWell, there is little in Mercadona with these characteristics, although they are trying to make healthier food, although they still haven’t quite succeeded.

Therefore, we see how it is a chain with a very rigid philosophy that has done well always acting in the same way but that may suffer in the medium term if it does not make its policy more flexible. The consumer is not loyal to anyone when they touch his pocket, and right now they are touching it more than ever.


Source: El Blog Salmón by www.elblogsalmon.com.

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