Mercadona's model divides opinion: neither cheap nor great
Is Mercadona more expensive than Aldi and Lidl? We analyse the Spanish chain's model: prices, own-brand products, suppliers and employment.
English · Original discussion in Spanish · Published
Mercadona: a business success or mediocre for the country?
Is Mercadona's model good for Spain? The short answer: it depends. Supporters highlight the quality of its products and wages above the sector average. Critics point out that its own-brand range is not the cheapest and that its dominance crushes suppliers.
More expensive or cheaper?
Compared with Aldi and Lidl, the Valencia-based chain usually loses on price, but its advantage lies in its ubiquity: it is everywhere, making it the only option for many neighbourhoods without a car. Meanwhile, DIA shamelessly practises shrinkflation: cans shrinking from 33 to 25 centilitres at the same price.
The price of dominance
For suppliers, depending on such a giant is a double-edged sword. Own-brand products account for almost all their sales, and when a supermarket succeeds, suppliers rarely come out winning. Added to this is the suspicion that its supposed cheapness is in fact a general impoverishment of consumption: everything is passable, but nothing stands out.
In short, the Mercadona model may be excellent for its shareholders, but for the country it remains an open debate. That said, in the meantime, canned tuna no longer reaches the 33 cl it had a year ago. In the end, the only thing shrinkflating without warning is our shopping basket.
Is Mercadona's model good for Spain? The short answer: it depends. Supporters highlight the quality of its products and wages above the sector average. Critics point out that its own-brand range is not the cheapest and that its dominance crushes suppliers.
More expensive or cheaper?
Compared with Aldi and Lidl, the Valencia-based chain usually loses on price, but its advantage lies in its ubiquity: it is everywhere, making it the only option for many neighbourhoods without a car. Meanwhile, DIA shamelessly practises shrinkflation: cans shrinking from 33 to 25 centilitres at the same price.
The price of dominance
For suppliers, depending on such a giant is a double-edged sword. Own-brand products account for almost all their sales, and when a supermarket succeeds, suppliers rarely come out winning. Added to this is the suspicion that its supposed cheapness is in fact a general impoverishment of consumption: everything is passable, but nothing stands out.
In short, the Mercadona model may be excellent for its shareholders, but for the country it remains an open debate. That said, in the meantime, canned tuna no longer reaches the 33 cl it had a year ago. In the end, the only thing shrinkflating without warning is our shopping basket.
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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 (57 replies).
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