buy what others discard

Primaprix had a turnover of 347 million euros in 2024, 24% more than the previous year. We know this thanks to the accounts for that year, which has just been deposited in the Commercial Registry and which has been published Five Days.

In just four years it has quadrupled its income and has gone from 110 stores to almost 300. All this selling exclusively well-known brands, without a single white label product. Counterintuitive in a country where the white label has become a religion.

Why is it important. The Primaprix model is exactly the opposite of the one dominates Spanish distribution. While Mercadona has been expelling manufacturer brands to fill the shelves with Hacendado and Deliplus, this chain has decided to do just the opposite: only top brands, but at bargain prices.

The formula works because it buys what others discard.

In detail. Primaprix feeds on the surpluses that large manufacturers need to liquidate: stocks leftovers, packaging changes, canceled promotions, failed launches…

It also purchases products in countries where the price is lower (hence some labels come in other languages) and references with a close consumption date, but always within the legal margins.

• The result is discounts of between 25% and 40% on the usual market price.
• In some cases, up to 70%.

The effect. This changing assortment generates a “treasure hunt” dynamic: what is on the shelves today may be gone tomorrow. And that urgency builds loyalty. The customer returns frequently because they know that there will always be something new at a good price. Similar to what happens, otherwise, with the news from Mercadona or Lidl’s central baskets.

• The chain has gained one million customers in the last year.
• It already reaches 3.3 million buyers.
• In Madrid it doubles the national average quota.

Yes, but. The model has its limits:

• Relying on surpluses means not being able to guarantee continuity of assortment.
• There is no developed fresco section.
• And managing an inventory that rotates every week requires even more complicated logistics than usual in this sector.

Between the lines. Primaprix has been able to read a change of era. After years of persistent inflation, buying at a outlet It has become normalized, it has gone from necessity to custom. Stiffness structural.

And that is why the customer profile has diversified. It is no longer just those who arrive just at the end of the month, it is also young professionals and middle class households who enjoy finding a brand name shampoo or some snacks imported at half price.

The figures:

• Turnover in 2024: 347 million euros.
• Growth: 24% year-on-year.
• Stores: about 300.
• Staff: almost 2,000 employees.
• Gross margin: 35%, above the largest in the sector.

The context. The owner of Primaprix is ​​the Uruguayan investor John Pfeffera cryptocurrency enthusiast, through his Pfeffer Capital fund. The headquarters is in Luxembourg and also operates in France and Portugal, although the bulk of the business continues to be Spain. The original founder was Carlos Villarformer director of Dia in Brazil, who launched the chain in 2014.

Twelve years later, its commitment to selling well-known brands at knockdown prices has shown that there was a huge gap in the Spanish market. One that no one else was occupying.

Featured image | Primaprix

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