Posted on

Retailers take measures to protect staff and customers in stores

Mercadona store

 

European retailers are taking steps to ensure customers and staff are adequately protected from becoming infected with the Coronavirus in their stores. Spanish supermarket chain Mercadona has issued a statement advising that only one person should go to make the purchase (not with the family, or with children or groups).  Also, people who are part of the risk groups; the elderly, people with chronic diseases are advised not to go to the stores. Purchase should be spread out throughout to avoid overcrowding. Customers are asked to pay by card and avoid the use of cash. According to the statement, “the supply of basic necessities is more than guaranteed.”  

The number of customers entering the supermarkets is being controlled to ensure the minimum required distance between people can be maintained. On the public access road to each supermarket a minimum distance of one metre will be marked for people waiting their turn to enter the doors of the supermarkets, which must be respected in order to access it.”

Opening hours have been slightly truncated and are subject to modifications. Lastly, to ensure food safety, product returns will not be admitted under any circumstances.

 

Posted on

Mercadona to build its main warehouse in Valencia

Mercadona said that what it refers to as its new “main regulating warehouse” will in turn supply the company’s other warehouses across Spain, ensuring the necessary stocks of all types of products, regardless of their origin and final destination.

Spanish supermarket chain Mercadona has chosen a business park in in Sagunto, Valencia, for a new logistics block.

It said Parc Sagunt’s strategic location makes it one of the best options for the company’s main warehouse, which will be built in stages and in time supply Mercadona’s entire logistics network.

In a press release on December 7, Mercadona announced its €24 million offer for a 358,270 m2 plot in the park had been accepted by the park owners.

“This new project will allow us to increase our productivity and optimise the efficiency of the rest of our warehouses, in aid of achieving our objective, which is to continue to transport more and more, using fewer resources,” said Mercadona’s managing director of logistics Oriol Montanyà.

Map image ©2016 Google, Inst Geogr. Nacional

Mercadona said that what it refers to as its new “main regulating warehouse” will in turn supply the company’s other warehouses across Spain, ensuring the necessary stocks of all types of products, regardless of their origin and final destination.

Mercadona’s logistics network currently consists of 13 logistics blocks and 3 satellite warehouses.

Mercadona’s logistics block in Abrera, Barcelona (source: Mercadona)

In 2007, it opted for a new warehouse model and an “intelligent, innovative and fully automated logistics block.”

The company foresees replicating the intelligent warehousing model in the new logistics block in order to avoid unnecessary handling, strain and accident risk for employees while increasing productivity.

As at October 28, Mercadona had more than 1,600 stores in Spain, having opened 32 new supermarkets this year.

It has inaugurated 32 new supermarkets in 2016 and refurbished a further 28 stores to adapt them to its ‘atmosphere store’ model.

Mercadona closed 2015 with revenue of €20.8 billion, a 3% increase on the previous year, and with profit of €611 million, up 12%.

It is expanding to Portugal, where it plans to open four supermarkets in 2019 with an initial investment of €25 million.

Source of images other than map: Mercadona 

Read more articles about Mercadona here.

 

Posted on

Mercadona increases by 3% to €20.8 billion

Mercadona’s commitments in 2016 include investments in 60 new stores, 2 logistics centres in Barcelona and Vitoria-Gasteiz and a second data processing centre.

Mercadona shared €277 million among its employees by way of performance-related bonuses and paid 326 back to society in taxes. From its €611 million net profit (+12% on 2014), 495 were reinvested and the rest issued as shareholders’ dividends. Net profit has risen by 12% to €611 million, and investment reached €651 million.

Mercadona’s integrated supplier-manufacturer industrial cluster in Spain boasts more than 240 factories and over 47,100 employees. Mercadona’s economic impact is estimated at 1.8% of the country’s GDP (€19.5 billion), providing 3.8% of the total posts in the country (640,000 employees), and the firm also carries out 85% of its purchasing in Spain, adding up to a total of €15.4 billion.

In 2016, Mercadona plans to carry out an investment of approximately €650 million, which will mainly be destined towards opening 60 new stores, refurbishing 35 supermarkets and the ongoing construction works for the Abrera (Barcelona) and Vitoria-Gasteiz logistics blocks, while continuing to foster technological transformation by starting to build the Villadangos del Paramo (Leon) Data Processing Centre.

Breakthroughs in technological and digital transformation

In 2015, Mercadona managed to move forward in its technological and digital transformation project, in which it has invested more than €90 million. All of this seeks to achieve a double objective: placing information at the service of employee decision-making and improving the shopping experience for customers.

In 2016, and as part of this digital innovation process, Mercadona plans to start building the second Data Processing Centre in Villadangos del Paramo (Leon), at an initial foreseen investment of €6 million. Furthermore, it will re-engineer its website to make it more seamless, agile and visually appealing. In 2015, online channel sales grew by 8%, contributing 169 million euros to the total revenue.

Sustainable Agri-Food Chain: from theory to action

Mercadona’s commitment to development of its Sustainable Agri-Food Chain (CASPOPDONA) continues to move forward, and in 2015, caused a positive impact in the Spanish primary sector. A good example of this is the productivity increase in sectors such as rice, where together with farmers in Extremadura and Valencia, integrated supplier Arrocerías Pons has managed to increase its crop yields by 15% while cutting costs by 20%, increasing profitability while minimising environmental impact.

Mercadona’s industrial cluster also accounts for more than 240 factories in Spain. They have a joint workforce of 47,100 people, as they have hired 2,600 new employees in 2015. This long-term investment plan has allowed for Mercadona and its 125 integrated suppliers to own more than 240 factories in Spain, making it one of Europe’s most dynamic, innovative agri-food clusters.

Commitment to fresh local produce

Mercadona is committed to the Spanish primary sector, a key area of the Spanish economy, and to providing customers with top quality, locally-sourced fresh products. To this end, Mercadona maintains stable agreements with 7,500 producers, 4,300 livestock farmers and 12,000 fisheries throughout Spain. In addition, more than 85% of Mercadona’s total buying volume consists of products cultivated and manufactured in Spain, in purchases to the tune of €15.4 billion a year.

30% more citrus purchased in 2015

Mercadona rounded off the 2015 Spanish orange campaign with the purchase of 130,000 tons of oranges of national origin, 30% more than in the previous season.

The oranges sold in Mercadona from November to August are domestically-grown. Mercadona supplies oranges from the Valencia Community, Murcia and Andalusia which are successfully sold in supermarkets throughout Spain. The oranges in Mercadona, from the season start-up in November until the following August, all come from Spain. For example, in the Valencia Community, Frutas Tono and Martinavarro, intermediate citrus suppliers to Mercadona, have more than 2,000 local orange suppliers and over 1,700 hectares of crops. So, 90% of oranges that Mercadona sells are of domestic origin.

This article was published on page 20 of the March/April 2016 edition, number 142, of Eurofresh Distribution magazine. Read that issue online here.

Posted on

Mercadona grows its fresh product market share by 5%

Turnover for family-owned supermarket chain Mercadona – by far the leader in Spain’s grocery market – rose 2% last year to reach €20.16 billion, its annual report shows.

Turnover for family-owned supermarket chain Mercadona – by far the leader in Spain’s grocery market – rose 2% last year to reach €20.16 billion, its annual report shows.

And net profit for the Valencia-based company – which by the end of 2014 had a network of 1,521 stores – stood at €543 million, up 5% on 2013.

Announcing the results last month, CEO Juan Roig said they were, without a doubt, due to the hard work of Mercadona’s 74,000 workers, 120 integrated suppliers, and the primary sector serving its sustainable agri-food chain.

Fresh local products

In the report, Mercadona highlighted its commitment to using “raw materials of Spanish origin whenever viable” and its new system for managing the selection of fresh products, which was initiated in 2011 to strengthen local economies and promote Spanish agricultural products. In this context, it said in 2014, Spanish products it purchased included:

  • Summer strawberries: 20 tons from Segovia
  • Artichokes: 190 tons from Tudela
  • Cherries: 4,000 tons from Extremadura, Aragon and Alicante
  • Oranges & tangerines: over 130,000 tons (+15%)
  • Potatoes: 80% of total were Spanish, amounting to 100,000 tons from Murcia, Seville, Huelva, Albacete & Castilla y Leon
  • Grapes: 210 tons from Cadiz and Seville

5% growth in new fresh sections

Under its new fresh products sales models, by the end of 2014, all Mercadona supermarkets had implemented new bakery sections and locally-sourced fruit and vegetable sections.

Mercadona said the new model had allowed for the strengthening of local economies, as well as boosting locally sourced products, which were “well accepted by clients.” It had also helped increase its fresh product market share by 5%.

Mercadona fruit and veg section.png

 

Commitments for 2015: 60 new supermarkets

In 2015, Mercadona plans to invest approximately €650 million, destined mainly towards the opening of 60 new stores, the refurbishment of a further 30, continuing the building of the logistics block in Abrera (Barcelona), and the start of a new logistics block in Vitoria-Gasteiz.

Screenshot 2015-04-14 at 11.48.15.png

Caspopdona: Mercadona’s sustainable food chain project

Introduced in 2010, the Caspopdona project is intended to develop Mercadona’s Sustainable Agri-Food Chain. Specific applications under this initiative include:

El Perelló Cooperative: The integrated supplier-manufacturer Pinchos Jovi has reached an agreement with this cooperative for sowing whole fields of peppers on summer, which it then uses to make its brochettes. In return for the agreed volumes and quality, Pinchos Jovi guarantees fixed prices and stability, which has enabled the El Perelló Cooperative (Valencia) to plant 5,600 hectares of green peppers, 3,600 of its own and 2,000 belonging to the Viver cooperative, amounting to the production of approximately 140,000 kilos of green peppers in Valencian fields.

Dafran&Darzoves: Mercadona has signed a contract with this tomato-producing company based in Almeria, which supplies it with 140,000 kilos of tomatoes per week. The agreement reached in 2014 has enabled this company to increase its turnover by 50%, by keeping its facilities operating throughout the year, and to employ twice as many people, with as many as 250 employees.

Logistics: intelligent warehouses

Mercadona’s logistics network now covers a total area of over 847,000 sqm. Nearly a decade ago, the company decided to innovate in its logistics network by developing and introducing totally automated intelligent warehouses, which eliminate “handling or overstrain by employees, helping to prevent and reduce the risk of industrial accidents, as well as increasing productivity and efficiency.”

Mercadona now has three such intelligent warehouses – in Ciempozuelos (Madrid), Riba-roja de Turia (Valencia) and Villadangos del Paramo (Leon) – and construction of a fourth, in Abrera (Barcelona), is due to be completed in 2017.

Mercadona logistics .png

Automated storage and preparation of pallets

In 2013 the company also installed the so-called PPG (Picking Puente Grua) automated gantry crane in its logistics block at Guadix (Granada), a system for automated storage and preparation of pallets of meat, fruit and vegetables in which it invested €5 million.

Read the annual report here.

Screenshot 2015-04-14 at 11.58.39.png

Posted on

Mercadona now holds 22.1% groceries margin in Spain

Screenshot 2015-02-16 at 16

 

Mercadona was by far the the leader but Carrefour Hiper, Dia, Eroski Supers and Lidl came next in holding the biggest share of Spain’s fast-moving consumer goods market last year, according to a report by Kantar Worldpanel.

Mercadona’s market share was triple that of its nearest competition, Carrefour Hiper, and it also dominated with its 17.5% share of perishables, climbing 6% on 2013.

But it was Lidl that grew the most in the perishables category, with its share rising 23.5% on 2013 to 2.1% last year.

The ten retail chains together accounted for 52.9% of total FMCG sales in Spain last year. All except Alcampo either improved or maintained their market share relative to 2013.

Perishables sales set to slump further

According to Kantar Worldpanel consumer insights director César Valencoso, last year was one of the worst for Spain’s FMCG sector, which lost 2.9% in sales value and 1.8% in volume overall – and he said the fresh produce category was largely to blame.

Indeed, the perishables category saw relative declines of 4.8% and 3.1% and the sales volume this year is poised to drop again, specifically by 1.1% on 2014, while most other categories are poised to improve, he said.

Market shares in Spain for sales of fast-moving consumer goods (FMCG)*

Retail chain

2014 ranking

2013 share in %

2014 share in %

change in percentage points

change in %

Mercadona

1

21.5

22.1

0.6

2.8%

Carrefour Hiper

2

7.5

7.7

0.2

2.6%

Dia

3

7.4

7.6

0.2

2.7%

Eroski Supers

4

3.1

3.3

0.2

6.4%

Lidl

5

2.7

3.1

0.4

14.8%

Alcampo

6

2.9

2.8

-0.1

-3.4%

Consum

7

1.7

1.9

0.2

11.7%

Eroski Hyper

8

1.5

1.6

0.1

6.6%

AhorraMás

9

1.5

1.5

0

0%

Caprabo

10

1.3

1.3

0

0%

 

* including food; baby, cleaning and personal care products; and pet food

source: Kantar Worldpanel based on sample of 12,000 households which reported daily to it on what they bought and where.

 

Read more: http://www.kantarworldpanel.com/es/Noticias/Buenas-perspectivas-Gran-Consumo-2015

 

Kantar spanish retailer rankings.png