Mercadona’s investments and sustainability advancements

Date : 16 December 2020

Lucy Bellotti

Retail Analyst

Spain-based Mercadona has revealed long-term investment plans to strengthen its logistics capacity. Meanwhile, the retailer continues to focus on reducing its use of plastic through its 6.25 strategy, while its suppliers sustain their pace of innovation to keep up with shopper demands.

Mercadona to invest €1 bn in its supply chain

Mercadona will invest €1 bn between 2021 and 2025 to enable it to improve and expand its logistics capacity. The retailer invested €200m in 2020, with plans for a further €300m in 2021. Further improvements, by the end of 2021, will be made directly to logistics centres in Alicante, Granada, Valencia, and Seville.

Mercadona accelerates its strategy to reduce plastic

Mercadona will invest more than €140m over the next five years to reduce its plastic use, through its 6.25 strategy. The strategy, which was launched in 2019, has been extended to 72 stores, which has seen them transformed to 6.25 stores. The 6.25 stores’ objective is to listen to shoppers and workers opinion regarding Mercadona’s actions towards sustainability, while also helping it raise awareness of the strategy’s six actions.

The scheme allows staff to help ‘care for the planet and make different processes of the assembly line more sustainable’. The retailer aims to achieve a 25% reduction in plastic usage, making all packaging recyclable and recycling all plastic waste by 2025.

Mercadona continues to innovate

Mercadona has announced its perfumery specialist suppliers plan to invest €5m to modernise and offer shoppers their best products. Mercadona’s supplier RNB has invested €2m to develop its research and production. Fragrance specialist Jesús Gómez, meanwhile, has invested €1m to improve its facilities such as refrigeration and automation. Furthermore, manufacturer Wecolors has invested over €2m towards its 2020 Christmas campaign.

Mercadona sustains pace of expansion in Portugal

Mercadona Portugal will end 2020 with a total of 20 stores. It claims it will continue to invest in 2021, spending €360m to open a further 10 locations in the year. Mercadona has opened its first 20 stores in Porto, Aveiro, Braga and Viana do Castelo.

The retailer has set out a strategy for expanding into Portugal, which includes replicating its supply chain by logistic blocks and committing to its co-innovation stores, which will enable a better understanding of Portuguese shoppers.

Furthermore, Mercadona plans to continue its development in the north of Portugal in 2021. In 2022 its Lisbon logistic block is due to open, which will create greater opportunities in the south. The retailer aims to build a network of 150 stores across Portugal over the next 10 years.

 

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