Mercadona cuts the price of its potato net bag in Spain
Mercadona has lowered the price of its 5 kg potato net bag from 6.15 to 5.60 euros. Is it a genuine price cut or a move to shift Israeli produce? We compare prices.
English · Original discussion in Spanish · Published
Mercadona cuts the price of its potatoes: strategy or necessity?
Mercadona's 5 kg net bag of potatoes has gone from 6.15 to 5.60 euros. The real drop per kilo is just 11 cents, from 1.23 to 1.12 €/kg. But the figure is not innocent: while the chain boasts about the cut, other channels offer the same product for less than half the price. At street markets you can find 20 kg sacks for 4 euros (0.20 €/kg), and local regional chains sell at 0.49 €/kg. The question is whether the cut reflects a genuine improvement in margins or the need to shift a surplus of Israeli-origin potatoes, whose commercial boycott has grown because of the conflict in Gaza.
The real maths behind the price cut
The reduction of 0.55 € per bag works out at an 8.9% discount. On an aggregate level, if 40 million Spaniards consume half a kilo a month, the total saving comes to less than 2.2 million euros a month. But Mercadona's margin remains wide: at Carrefour, the same 5 kg bag usually sells for between 4 and 4.5 euros, suggesting that the 5.60 price still leaves a considerable cushion.
Israeli origin and social pressure
Several consumers have pointed out that the potatoes in the bag come from Israel, not from France as is usual. This would explain the urgency to sell: the boycott of Israeli products has reduced demand in certain markets, and Mercadona needs to clear its stock. The price cut would then be a reaction to social pressure, not a loyalty strategy.
Alternatives that expose the real margin
While Mercadona sells at 1.12 €/kg, at local shops or straight from the farmer you can find potatoes of similar quality at 0.30-0.40 €/kg. One user reports paying 1.90 € for 5 kg of potatoes from La Rioja (0.38 €/kg). Another mentions 0.49 €/kg at a regional chain. The difference is not marginal: Mercadona's markup exceeds 200% compared with the source price. The chain's fruta for being cheap is called into question when prices are compared with less heavily advertised alternatives.
The debate remains open: some see the price cut as proof of competitiveness; others, as window dressing to hide abusive margins. The only thing that is clear is that, for anyone willing to look around, potatoes can cost less than half what they do at the benchmark supermarket.
Related discussions on the forum
Mercadona's 5 kg net bag of potatoes has gone from 6.15 to 5.60 euros. The real drop per kilo is just 11 cents, from 1.23 to 1.12 €/kg. But the figure is not innocent: while the chain boasts about the cut, other channels offer the same product for less than half the price. At street markets you can find 20 kg sacks for 4 euros (0.20 €/kg), and local regional chains sell at 0.49 €/kg. The question is whether the cut reflects a genuine improvement in margins or the need to shift a surplus of Israeli-origin potatoes, whose commercial boycott has grown because of the conflict in Gaza.
The real maths behind the price cut
The reduction of 0.55 € per bag works out at an 8.9% discount. On an aggregate level, if 40 million Spaniards consume half a kilo a month, the total saving comes to less than 2.2 million euros a month. But Mercadona's margin remains wide: at Carrefour, the same 5 kg bag usually sells for between 4 and 4.5 euros, suggesting that the 5.60 price still leaves a considerable cushion.
Israeli origin and social pressure
Several consumers have pointed out that the potatoes in the bag come from Israel, not from France as is usual. This would explain the urgency to sell: the boycott of Israeli products has reduced demand in certain markets, and Mercadona needs to clear its stock. The price cut would then be a reaction to social pressure, not a loyalty strategy.
Alternatives that expose the real margin
While Mercadona sells at 1.12 €/kg, at local shops or straight from the farmer you can find potatoes of similar quality at 0.30-0.40 €/kg. One user reports paying 1.90 € for 5 kg of potatoes from La Rioja (0.38 €/kg). Another mentions 0.49 €/kg at a regional chain. The difference is not marginal: Mercadona's markup exceeds 200% compared with the source price. The chain's fruta for being cheap is called into question when prices are compared with less heavily advertised alternatives.
The debate remains open: some see the price cut as proof of competitiveness; others, as window dressing to hide abusive margins. The only thing that is clear is that, for anyone willing to look around, potatoes can cost less than half what they do at the benchmark supermarket.
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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 (35 replies).
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