Retailer’s share of Spanish market edges up 0.6 per cent to 27.6 per cent
Mercadona reported a 15 per cent increase in sales to €35.5bn in 2023. Net profits jumped 40 per cent to more than €1bn.
Announcing the results this week, owner Juan Roig said improved productivity, good tourist numbers, growth in Portugal and an increase in the number of online users had made 2023 the supermarket’s best year ever.
Price cuts helped lift the retailer’s market share by 0.6 per cent to 27.6 per cent last year. Roig said more price cuts will come in 2024, as production costs ease. “Price wars are an essential part of distribution. We have been in price wars all our lives, that is the reason for competition, which is a very healthy thing,” he said.
Mercadona has significantly expanded its footprint, with sales in Spain nearing €34bn billion and Portugal contributing €14bn, marking its first profitable year there since entry. It plans to invest €5bn in the next five years, including €1.1bn in 2024, to expand its business in Spain and Portugal.
The retailer has renovated and upgraded more than 1,350 of its 1,681 supermarkets to its new efficient store model concept.
With 104,000 employees, Mercadona is one of Spain’s biggest employers, generating 3.7 per cent of all jobs in the country.
The company expects sales to grow 6 per cent in 2024 with similar, or slightly higher profits.
