The US Government has noticed a growing “cultural phenomenon” in Spain, one especially interesting for its exporting companies and which comes accompanied by millionaire turnover figures. What phenomenon is that? Mercadona. Literally. In your report Retail Foods Annualthe US Department of Agriculture dedicates special attention to Juan Roig’s company and slips that its weight in the retail It already transcends the limits of the retail sector.
He even theorizes about the formula for his success.
Under the spotlight of Donald Trump. It is not strange that Mercadona makes headlines. After all, it has become a crucial piece of the retail Spanish. Your market share in the sector around 30% (in some regions already exceeds that percentage), far above other competitors such as Carrefour, IFA or Lidl, and has been expanding for the country. What is much less common is for the Valencian retail chain to make headlines because it has caught the attention of US officials, which is exactly what has just happened.
Table extracted from the report of the US Department of Agriculture.
Attention, USA exporters. Mercadona is cited at least seven times in a report 10 pages published a few days ago by the US Department of Agriculture (USDA), a document designed primarily for exporters from the country interested in the Spanish market. In it, the Washington technicians review the billing figures of Juan Roig’s firm, highlight its high weight in the sector (well above competitors such as Carrefour, Lidl, DIA or Eroski) and reflect on the keys to its commercial success.
To be more precise, USDA recalls that last year Mercadona recorded sales worth an estimated $34.5 billion. The figure does not exactly match the disclosed by the company, but it is more than double that of Grupo Carrefour (12,000) and well above other well-established chains in the country, such as Lidl (7,500), DIA (6,150), Eroski (5,800) or Alcampo (5,500).
“Mercadona occupies first place in the food retail sector in Spain, with sales almost three times higher than those of its second closest competitor,” check the reportwhich theorizes about the bet that has given the chain a market share of almost 30%.
The formula for success. USDA highlights two features of the Valencian company. First, its Spanish food offering. Second, its strategic commitment to retail brands, especially Hacendado. “Private labels are very popular in Spain, driven by consumer attention to prices and quality. According to a study by the Aldi chain, Spanish households allocate 44% of their purchasing budget to private label products,” collect the reportwhich goes so far as to refer to the company as a “cultural phenomenon.”
Is it something new? No. Washington is not the first to focus on the Valencian chain’s commitment to its own brands. A report from Kandar presented in 2024 by Promarca already pointed out the clear increase in distributor brands in Spanish supermarkets, a general trend that was accentuated in the case of Mercadona. Its external brand offering was cut by 45% between 2018 and 2023, while the value share of white label products reached 74.5%.
Other sector reports have highlighted the same idea in recent months: Mercadona’s growing commitment to its brands. Added to this strategy are others deployed by the firm, such as the interest for foods already cooked and ready to eat. Roig himself has recognized openly that he is convinced that mid century Kitchens will disappear from Spanish homes, so people will eat prepared dishes. It is so sure of this that Mercadona has been betting on its section for years. “Ready to eat”.
X-raying the sector. Beyond Mercadona, the report from USDA reveals some reflections on the food distribution sector in Spain. Its technicians are struck by, for example, the pace of opening of new stores (244 only between January and April of this year), the promotion of self-service stores and regional super chains (key piece of the national sector) or “the growing popularity” of healthy and convenience products.
“Consumers are combining physical and online channels, favoring digital platforms for larger purchases and in-person purchases of fresh products. Retail strategies focus on efficiency, AI technologies, personalization and healthy products,” he comments. the USDA studywhich draws attention to the high “fragmentation” of retail trade and the concentration of the food sector, with Mercadona leading the way.
Images | Mercadona, Gage Skidmore (Flickr) and USDA
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