Action targets groceries and Mercadona is listening
Action is growing in Spain and threatening Mercadona's model. Can the Dutch low-cost chain lower grocery prices with its push into food?
English · Original discussion in Spanish · Published
Action, the low-cost chain that wants to eat into Mercadona's basket
Can a Dutch supermarket chain that today sells snacks and paper rolls topple Juan Roig's empire? The question hangs over the retail sector. Action, known for its aggressive prices, already has dozens of stores in Spain, and its next step, it is suggested, is to expand its grocery range. For now, its assortment looks more like an Asian bazaar with strange drinks than a regular supermarket.
More than a Chinese bazaar
Its defenders see Action as a new format capable of putting pressure on the prices of basic groceries. The company has been expanding across Europe for years with a simple formula: own brands and everyday items at very low prices. The sceptic, however, replies that without fresh food there is no real war against the market leader. The anecdote of the moment: the upcoming opening of a Costco in Paterna, which adds another player to the board.
The threat to Roig
Mercadona's empire has been built on fresh produce and store density. A low-cost chain selling only non-perishables can hardly bite at its heels. But Action's strategy is a long-term one. If one day it completes its range with fruit and vegetables, the equation changes. Until then, the title of "bazaar with delusions of grandeur" still warrants no antiestéticar.
And while we wait, snack prices are not coming down. It will all come in time, some say; the level-headed point out that there is still a lot of assortment yet to arrive.
Can a Dutch supermarket chain that today sells snacks and paper rolls topple Juan Roig's empire? The question hangs over the retail sector. Action, known for its aggressive prices, already has dozens of stores in Spain, and its next step, it is suggested, is to expand its grocery range. For now, its assortment looks more like an Asian bazaar with strange drinks than a regular supermarket.
More than a Chinese bazaar
Its defenders see Action as a new format capable of putting pressure on the prices of basic groceries. The company has been expanding across Europe for years with a simple formula: own brands and everyday items at very low prices. The sceptic, however, replies that without fresh food there is no real war against the market leader. The anecdote of the moment: the upcoming opening of a Costco in Paterna, which adds another player to the board.
The threat to Roig
Mercadona's empire has been built on fresh produce and store density. A low-cost chain selling only non-perishables can hardly bite at its heels. But Action's strategy is a long-term one. If one day it completes its range with fruit and vegetables, the equation changes. Until then, the title of "bazaar with delusions of grandeur" still warrants no antiestéticar.
And while we wait, snack prices are not coming down. It will all come in time, some say; the level-headed point out that there is still a lot of assortment yet to arrive.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (40 replies).
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