Magazine: A supermarket chain sits on top of the retail ranking

With its 47-million inhabitants, Spain’s population is the fifth highest in Europe. Although the economy showed signs of improvement after the recession, the level of unemployment was still above 20 percent in the first quarter of 2011. 74 percent of households changed their spending habits last year (the average of 28 European countries was 62 percent): 65 cut down on going out, 63 reduced energy usage and 51 switched to cheaper food products. Spain’s five biggest retail chains realised 70 percent of total turnover and it is interesting that supermarkets performed really well. The driving force behind this supermarket expansion was Mercadona, which not only opened new stores but also managed to generate higher revenues by already existing units. Turnover of Mercadona’s 1,310 supermarkets exceeded EUR 15 billion last year and their share of Spain’s total food retail was 25 percent. The key to success was adapting their strategy to changed buying habits, focusing more on convenience, low prices and quality. Number two in the ranking was Carrefour with a EUR 12-billon turnover, whose 2,766 Dia discount stores will soon become independent. Third in the ranking was Eroski (turnover: EUR 7.5 billion), followed by Auchan (EUR 4 billion) and El Corte Inglés. German group Schwarz operates more than 500 Lidl stores on the Spanish market. They are expanding rapidly and they softened up the hard discount model a bit, adding national brands to the assortment and moving towards the supermarket direction.