Trends

Mercadona, record investments in 2017

The Spanish food top retailer presents a €21.6 billion plan. Eco-friendly concept and e-commerce are the main priorities

Happy employees make the company richer. Walmart bears witness to that, after having raised its employees’ wage in response to a turnover’s decrease in 2015. As a result, revenues grew as much as customers’ satisfaction. Spanish chain Mercadona confirms the tendency. Its growth’s rates seem to be closely tied to the rich bonuses received by employees: 3 billion euros in the last three years. It is no coincidence that the Spanish food top retailer has just received a compliment from the UN Agency International Labour Organisation (ILO). According to ILO, Mercadona’s efforts to training staff and employees’ profit-sharing are the basis for the retailer’s own success. In 2016 Mercadona was running a 21.6 billion euros business. An increase of 3.9% on 2015, with a net profit of 636 million euros. The retail giant is even considered market leader with a share of 22.9%, up 0.2%.

ROIG’S PLAN – During the presentation of the results Juan Roig, Mercadona’s founder, president and main shareholder, has also announced plans to support the chain’s further development through investments at an unprecedented level. During 2017, Mr. Roig is going to spend about 1.2 billion euros, twice as many as 2016, to finance the restyling of 126 store out of a total of 1,614, to open 30 more stores and to reinforce logistics network while reducing the environmental impact. A new store concept will be implemented, characterized by a more modern design, more room for fresh products and more attention to energy efficiency.

FRESH BOOST TO ONLINE CHANNEL – An important part of Mercadona’s future plans consist in a full change of online shopping services. Mr. Roig himself, besides, has described Mercadona’s e-commerce platform as very poor, to say the least, nowhere near El Corte Inglés’, Dia’s and Carrefour’s apps. That’s why the retailer has hired a team of 20 experts who will have to renew the website, thus making e-commerce more profitable. At present, after all, barely 1% of total sales comes from the web.

EXPANSION IN PORTUGAL – Meanwhile preparations are being made for Mercadona’s debut in Portugal, planned for 2019. The chain is considering how to adapt its offer to the specific and varied needs of Portuguese customers.