Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Like-For-Like Sales Up, Net Profit Down At Spain's Mercadona

Spanish supermarket chain Mercadona reported 3.3% annual growth in like-for-like sales, to €27.8 billion, in its financial year 2021.

Of this total, €27.4 billion was generated in Spain, and the remaining €415 million Portugal, where the banner acquired a 3% market share after two years.

Mercadona opted not to pass on to its customers the significant increases of raw materials, transport, and industrial prices, which had a negative impact of €100 million on its operating margins and resulted in a 6% reduction in its net profit, which stood at €680 million in 2021.

The company's total investments amounted to €1.2 billion (€1.1 billion in Spain).

Mercadona opened 79 new supermarkets last year (nine in Portugal) and closed 58 that did not fit its more efficient and sustainable store model, ending 2021 with 1,662 stores (1,633 in Spain and 29 in Portugal).

The retailer renovated 84 stores, closing the year with 1,200 supermarkets adapted to the Efficient Store Model (Store 8) concept.

It also continued the roll-out of its ready-to-eat section, now present in 825 shops.

Digital Transformation

Last year, Mercadona invested €1.2 billion in its transformation to a more digital, productive and sustainable business model, in addition to more than €49 million in different sustainability initiatives and measures.

In Spain, it consolidated its online shopping services (Colmeias and Telecompra) and increased sales to €510 million (+40%), while Mercadona Online (Colmeias) saw orders increase to 1.8 million, compared to 1.2 million in 2020.

The retailer plans to invest €1.1 billion in 2022, mainly towards opening 68 new supermarkets (58 in Spain and ten in Portugal), refurbishing 43 supermarkets, and establishing a ready-to-eat section in a further 150 supermarkets.

Mercadona added that 2022 will be ‘a very difficult year’ due to higher inflation, which will require an increase in expenditure of more than €500 million.

Read More: Mercadona Announces 6.5% Wage Hike For Entire Workforce

© 2022 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days