Mercadona and Lidl grow thanks to the decline of Dia engaged in its worst crisis
Mercadona and Lidl grow thanks to the decline of Dia engaged in its worst crisis
The supermarket chain drops by 0.7% in 2018 to 7.5% market share, despite "not yet accounted for the negative effects of layoffs", explains the head of retail sector of Kantar Worldpanel
Mercadona and Lidl grow thanks to the decline of Dia in the year of its worst crisis. The supermarket chain drops by 0.7% in 2018 to 7.5% market share, despite "not yet accounted for the negative effects of layoffs", explains the head of retail sector of Kantar Worldpanel .
The Valencian chain Mercadona remains one more year the undisputed leader for Spanish consumers with a market share of 25%. This means that 1 of every 4 euros spent on mass consumption goes to the firm of Juan Roig, which has strengthened its position especially in fresh products, which account for half of what we Spaniards spend in the shopping cart, according to the figures of the report 'Balance of the Distribution and Great Consumption 2018' presented this Tuesday by the consultant Kantar Worldpanel.
Another highlight is the case of Lidl , which together with Mercadona, is the only one of the six large distributors that earn a share in 2018. The brand exceeds Dia and Carrefour for the first time in number of buyers. The study reveals that almost seven out of ten Spaniards have bought at least once in the German chain during the last year.
And all this progress due, in large part, to the decline of Dia in a year in which it has gone through its worst crisis , although to this day it continues and the damage caused by measures of a more social nature than those of other countries has not been accounted for. financial crises, "as are the layoffs," said Florencio García, director of the retail sector of Kantar Worldpanel.
The figures in the report reveal that Grupo Dia remains the third largest distributor, behind Mercadona and Carrefour, with a market share of 7.5%, which represents a 0.7% fall of the OPA of the Russian group. Letterone Retail. García recalled that it has the largest park in number of stores in Spain, with about 3,500 throughout the country , but with a volume of buyers similar to Carrefour that only has 500 stores . "What for them was a success in their day is now hurting them because of the increase in competition, they need to improve their image before the consumer and make better use of the square meter" .
E-commerce still has a low market share due to the importance of fresh products in Spain
In his opinion, the key for the company to recover is to rapidly undertake the transformation of its nearly 3,500 stores in Spain to new and more profitable models (in reference to DIA & Go and La Plaza), since 70% of this network is still made up of classic establishments.
García has valued the promotion of Mercadona in the part of the fresh ("conquer the market of fresh is to conquer the Spanish consumer," he said) and, in fact, this is what hinders the progress of e-commerce in Spain, for being a country closely linked to the sale of fresh products. The electronic commerce of feeding continues his slow advance with a quota of 1,6% of the sales, what supposes an increase of only the 0,1% with regard to 2017. Still very far of the data of France (5,6% ) and the United Kingdom (7.2%).
Less shopping but more spending
In addition, consumer habits are changing in Spain. From the exit of the crisis, the Spaniards look for products at a good price and the offers in the stores, but they no longer only move for these reasons, but quality and health gain strength. Thus, citizens spent 0.7% more in the shopping cart in 2018, although it consumed 1.1% less in volume, according to the report.
The reasons are fundamentally a brake in terms of population volume and increasing consumption outside the home. "The greatest concern of the sector is the stagnation of the population , if there are no more mouths to feed, there will be no major changes in volumes," Garcia explained.
Eco / bio products already enter 6 out of 10 Spanish homes
The consumer is willing to pay more but for much better products than he was used to. "Every time you are more aware of saturated fats, palm oil, etc," Garcia recalled. The report reveals that eco / bio products have grown 19% in 2018 and already enter 6 out of 10 Spanish households. Thus, one in two respondents says they do not mind paying more if they receive higher quality.
The data show that expensive but quality products such as premium beers (+ 21%) or gourmet chocolates (+ 37%) have grown a lot last year. The same applies to healthy and easy-to-prepare products such as packaged salads (+ 28%), coffee capsules (+ 21%) and roast chicken and prepared dishes (+ 44%).
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