Mercadona FY 2019 results

Lucy Bellotti
Retail Analyst
@RetailAnalysis

Date : 19 March 2020

Spain-based Mercadona said it increased revenue by 4.9% in 2019, to €25.5 bn. Meanwhile, the retailer has committed to further sustainability initiatives and outlined its 2020 investment plans.

Sales performance

Mercadona announced sales growth of 4.9% to €25.5 bn and net profit growth of 5.1% to €623m. The retailer opened 46 stores and closed 46 stores and refurbished 351 stores, ending 2019 with a total of 1,636.  

The group invested €2.2 bn, an increase of 46% compared to 2018. The rise in investment was part of its 2018-2023 transformation plan, which is supporting sustainable initiatives, digital, logistics and socially responsibility models.  

Plastic commitments

The group committed to eliminating and reducing single-use plastic and improving sustainable transport. The retailer has stated targets consist of reducing 25% of consumed plastic and ensuring all plastic packaging is recyclable by 2025.

2020 transformation plans

Mercadona plans to invest €1.8 bn in its transformation plans, including digital transformation by launching an additional online Hive in Madrid.

In Spain Mercadona is expecting to add by 69 stores and refurbish 160 stores, to adopt the efficient store model and further develop its global fresh project. Separately, the retailer expects to implement its ready-to-eat areas to 460 supermarkets in 2020.

Meanwhile, in Portugal Mercadona is planning to open 10 stores in 2020, mainly in Aveiro, Braga and Porto. Roig claims expansion will continue in 2021 with 10 store openings and 2022 is expected to see 20 new stores.

 

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