Mercadona Increased Investment In 2018 Transformation Project By 50%
Spanish grocer Mercadona has announced that it increased investment in its operations by 50% to €1.5 billion in 2018, in order to meet its transformational goals.
The transformation project was launched in 2017 to implement various changes in the organisation.
As a part of the project, the retailer grew its workforce to more than 85,800 people, including 300 Portuguese nationals, as of the end of 2018.
In May of last year, the retailer launched a pilot project for its online warehouse, Colmena.
Dedicated exclusively for online orders and catering to customers in 97 municipalities in the province of Valencia, the new facility generated a monthly turnover of around €2.2 million.
The project also involved efforts towards developing a responsible and sustainable business model, improving the quality of work, and investing in environmental care and animal welfare.
The retailer distributed 25% of its total profits generated in 2018, amounting to around €325 million, as bonuses to employees.
It also reinvested a part of its profits in the company as equity, and paid out dividends to its shareholders.
The company aims to invest more than €2.3 billion in 2019 for renovating and opening new supermarkets.
The retailer will also use the funds to implement automation in its logistics network.
It will continue to allocate significant resources in driving digital transformation – a new growth vector for the grocer.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.