Mercadona: queues at store openings but rising prices in the basket

Queues to get into Mercadona and price rises in the shopping basket

Mercadona peine in Ansoáin and queues formed to get in. The same supermarket that generates excitement with its first opening in Navarre and its arrival in Fuerteventura is the one that, according to a large share of its regular customers, has been losing quality and nudging prices up product by product. The contradiction is nothing new: the own-brand range gets criticised, comparisons are made with Lidl or Aldi, and yet, when the time comes, people queue to get in.

One reply in the debate sums up the scene well: if you already shop during off-peak hours, the last thing you want is to queue to get into the supermarket. And yet, the opening is packed. The conclusion drawn by another participant is the usual one: the day a new store opens and doesn't fill up, let us know.

Why a Mercadona opening draws a crowd

The dominant argument has nothing to do with product quality but with novelty and the previous absence of competition. Where there has never been a large supermarket, it would be odd if it didn't fill up. In Fuerteventura, Mercadona's arrival is seen as the entry of real competition into an island market where Hiperdino, Padilla (Spar) and Inpescasa operated, and where prices had gone unchecked for years.

There lies the uncomfortable fact for fans and critics alike: according to the comparison made in the debate, Mercadona's prices on the islands are practically identical to Hiperdino's. Even the Canary Island chain's milk is two cents cheaper, and it is packed by Reny Picot. The excitement isn't generated by price. It's generated by the event.

The price rises every customer sees on their receipt

The disillusionment has a very concrete basis: products going up in price without any improvement in quality. The 30-pack tranchete sandwiches went from 1.65 to 1.95 euros in a few months. Fabric softener rose from 1.60 to 1.85. Hacendado whole milk has gone up considerably. And Hacendado walnuts, which at one point were sourced from India without any price cut, are back to California walnuts with a slight reduction.

The complaint isn't just about price. It's about variety and origin. It's pointed out that almost all the cold meats and pizzas are from Catalonia, despite the excellent cured meats from Extremadura, and that the own-brand range is no longer what it used to be. The company's response, according to the debate itself, is a sign at the door advertising fresher, more flavourful fruit. An implicit admission that the previous fruit was bad.

The store model that puts part of its customer base off

Some people go to Mercadona and don't want to be sold to. The deli counter disappeared, and in its place staff appear in every section offering gel, cheap ham, fresh fish or pastries. For part of the customer base, that breaks the quiet shopping experience: they want to compare, choose and pay without an intermediary.

On the other side of the scale are the treatment and the jobs. It's highlighted that Mercadona has more people working than other chains, where sometimes there's only one employee in the whole store, and that it pays a minimum wage of 1,260 euros gross per month. The fine print being debated: with bonus payments prorated and social security contributions deducted, the actual amount landing in your account is considerably lower.

The brand narrative versus the shopping trolley

The strongest defence of the model doesn't come from price but from management. A company that works, that pays and that delivers, in a country where that's not common, is an argument that carries weight. It's acknowledged that they are no charity and that they squeeze every euro for maximum profit, from producers and employees alike, but if you work there or sell to them, you get paid.

Against that, the deeper criticism: Mercadona has increasingly come to resemble a small grocer with a narrow range, with the own brand as the only real option and no real choice for the customer. The name of the own brand, Hacendado, has even been described as bossy. The irony is served: the everyday supermarket is becoming less and less for every day.

What really drives the purchasing decision

The customer who complains doesn't stop buying. They spread it around. More is bought at Aldi, whose fruit and vegetables are rated as decent and whose yoghurts are liked, or people turn to Lidl and Alimerka, which is credited with the best value for money. The Reny Picot milk that Alimerka packs for its own brand is described outright as excellent, with the OCU (Spain's consumer organisation) study in the crosshairs.

The prediction, with reservations: as long as the competition keeps up the pressure, Mercadona will keep losing the weekly shop of those who compare, but will retain that of those who value proximity, parking, home delivery and opening hours. The packed opening doesn't contradict the complaints. It coexists with them.