Mercadona has had another strong year of sales growth as it increased its turnover by 6% to €22,915m, whilst achieving 5% volume growth.
2017 saw Mercadona make a record investment of €1bn, 47% more than in 2016. This investment facilitated 13 (net) supermarkets to be opened, making the network total 1,627. 126 stores were remodelled to the New Efficient Store Model, making the total 182. Mercadona has been rapidly carrying out this new store design programme, considering there were only two new design stores in 2016.
Net profit was down to €322m, 49% less than 2016, this shows the company’s focus on long-term planning.
In 2018, the plan is to invest €1.5bn, to open 27 supermarkets and update 200 more stores to the New Efficient Store Model. In the long-term, 2018 to 2023, an investment of €8.5bn has already been planned and approved by the retailer.
Mercadona uses its 16 centres to understand its customers’ product needs and make product innovations tailored to them – ‘El Jefe’ (‘The Boss’). In 2017, 240 new products were formulated, and 105 reformulated, with an 82% success rate.
Two new co-innovation centres were opened in 2017. Located in Valéncia and in Matosinhos, Porto. The latter is the first centre in Portugal. Its current focus is to understand Portuguese consumers, and to adapt its Spanish products to Portuguese shoppers. Mercadona’s expansion into Portugal is still in the development phase. A distribution centre in Porto is being constructed, and is set to open in 2019, along with four stores. The new distribution centre is located as to link up with the existing supply chain in the north of Spain.
Mercadona to embrace new technologies
The Online Mercadona Project is set to launch in Valencia, in H2 2018. A website and mobile app will be built to support this. €12m was invested in this 13,000 m2 facility, which will support Mercadona’s online venture.
A note from the Mercadona’s president, Juan Roig
Roig, said that 2017 has been a turning point for all those who form Mercadona:
“We are working in the long term and committed to the consolidation of a disruptive transformation project that puts the effort of the people at the centre. Achieving this requires conviction and the great merit is the effort of the 84,000 people of Mercadona and the specialist suppliers who guarantee the everyday satisfaction of "El Jefe", our customers. They are the reason for these excellent results.”
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