Discounters are on the rise in Spain in each of their categories: the happy, the hard and the smart. In fact, although the food distribution sector in Spain is highly consolidated, with Mercadona as the clear leader, regional chains showing unparalleled strength compared to the rest of Europe, and with the presence of highly reputable large multinationals, there are still gaps to be filled by some brands.
The “happy ones”: Primaprix, Dealz and Sqrups
In the happy discount segment, three retailers are competing with different strategies, but they share the same essence: the search for bargains among top brands.
“They are focused on prices, but they give it a twist, because what they aim for is to surprise and entertain. Their stores invite you to come in and take a look; they always have new and original things,” says the head of distribution at the Aecoc employers’ association, Pablo de la Rica.
According to data collected by Retail Data, in just five years, the number of Primaprix stores has increased tenfold (up to 123), while that of Dealz has increased fivefold (56) and that of Sqrups has tripled (49).
The “hard ones”: Mere, Family Cash and Supeco
It looked like stores with items placed in boxes and on pallets (to cut costs) seemed to have gone out of fashion, but several chains are reviving the hard discounter format with relative success.
The latest to try its luck is Russia’s Mere, which has just arrived in Spain with an extremely austere kind of store and with the goal of having a hundred supermarkets in four years.
Family Cash, a chain of medium-sized hypermarkets, with some 25 stores, has a similar strategy and is generating controversy in the sector because of its low prices.
Proof of the renewed interest in this type of chains among some consumers is the commitment to Supeco shown by a giant such as Carrefour. Spain already has almost thirty Supeco stores, which are known for their low prices, and the retailer has already achieved great success in Latin America.
The “smart ones”: Lidl and Aldi
Not so many years ago, Germany’s Lidl and Aldi also opted for pallets and cardboard boxes and were hardly paying any attention to fresh produce. But not anymore. In Spain, they have made a 180-degree turnaround, and that has worked out well for them. Both are gaining market share and are putting pressure on their competitors.
“They have evolved magnificently. They have gone from a hard to a smart discounter model by adding new layers of value. Their strategy is still based on price, but they have also been working on the shopping experience and strengthened their commitment to organic products and sustainability,” says De la Rica.
Source: efeagro.com