April 10, 2021

Mercadona reinforces its leadership and Dia loses market share in Spain

Mercadona reinforces its leadership and Dia loses market share in Spain


Mercadona reinforces its leadership at the forefront of Spanish distribution, after reaching almost 25% of the market in 2018, which means to gain 0.8 more points of quota, before the push of Lidl and the regional supermarkets, while Dia loses 0.7% points although it remains in the third place, according to the report 'Balance of the distribution and the Great Consumption 2018 of Kantar Worldpanel. By channels, supermarkets already account for 60% of spending, compared to 24.2% of traditional trade, 13.3% of the hypermarket, which slows down its decline in recent years, and 1.6% of Internet commerce. , that hardly goes up one tenth.

It is the decline of specialist markets and stores (fishmongers, butchers, etc.) that "feeds" the growth of the big chains, according to the head of the distribution department at Kantar Worldpanel Iberia, Florencio García, who believes that they still have margin to subtract more sales.

Specifically, one in four euros that Spaniards spend in large quantities go to the supermarkets of the firm of Juan Roig, which concentrates 21.2% of the sale of fresh products sold in Spain. A) Yes, one in five euros in fresh products it is spent in the Mercadona establishments.

Florencio García, director of the "retail" sector of Kantar, has indicated that Mercadona and Lidl are the "only big distributors" that grow in Spain, being the firm of Juan Roig which has more weekly buyers after having reinforced its commitment to the distribution brand with innovation in its products.

Mercadona closed the year with a quota of 24.9%, eight tenths more than the previous year, and 91% of buyers went to their stores at least once during the year (six tenths better than the figure for 2017. In addition, 20% of them buy there once a week, also above average.

In this sense, García pointed out that the growth of Mercadona is based on the improvement of its sales of fresh products, the continuous introduction of new references and the strength of its white brand. "For the past two years, it has carried out a process of supplier diversification that allows it to innovate and have more different products, and the consumer responds to this policy in a positive way," he explained.

A Mercadona follows him in the Carrefour classification, with a market share of 8.4%, which is 0.3% less than last year and which is in the process of "expanding its strategic plan" and is trying to become the "reference" in the omnichannel.

Fall of the DIA group

On the other hand, the DIA group was the supermarket chain that lost most market share and number of buyers in Spain during 2018, although it maintains the third position According to its data, DIA closed the year with a 7.5% sales quota, seven tenths below the figure for 2017, and 65% of Spanish consumers visited their stores at least once during the year, 1.7 points less.

García explained that the corporate crisis and the financial problems that the company is going through affect little to the consumer, but he has warned of the impact on his image of the dismissals announced recently. "The fall of DIA is concentrated in its most classic brands, it has been badly affected by the increase in competition," said García.

In his opinion, the key for the company to recover is to rapidly undertake the transformation of its nearly 3,500 stores in Spain to new and more profitable models (in reference to DIA & Go and La Plaza), since 70% of this network is still made up of classic establishments.

The specialist of Kantar has influenced that, despite having almost 3,500 stores -more than any other chain-, the group has the same buyers as Carrefour, with a thousand stores, or Lidl, with 550. "The challenge is to transform and make profitable better the square meter », he stressed.

The data suggest that the market share lost by DIA «is shared between Mercadona, Lidl and regional supermarkets», since they are the ones «more establishments are opening nearby» of their supermarkets.

For Florencio García, the best news for the company led by Borja de la Cierva is the good reception of the consumer to its new DIA & Go brand and its sales growth through Internet, an area in which it has an agreement with Amazon and where it occupies the third position in the list of main distributors, with 9 of the sales on the internet in large consumption.

The supermarket chain Lidl continues to grow in the Spanish distribution after raising five tenths and reaching 4.8% market share, driven by its commitment to grow in all market trends, such as the organic and bio segment, where it leads with 16.5% of the quota. In addition, Lidl has become the second chain in number of buyers in the Spanish market, already reaching 4.8% of the national market.

For its part, Eroski yielded 0.2 points in 2018, until reaching a market share of 5.3%, due to its fall in Catalonia with Caprabo before the arrival of competitors such as Bon Preu or Condis, while maintaining its leadership in Galicia and the Basque Country. Auchan falls 0.1%, but manages to win competitors in the process of changing their proximity format with the transformation of the Simply by the My Alcampo.

On the other hand, the regional supermarkets (Consum, Ahorramas, Gadisa or Coviran) grow by 0.5% in 2018, until reaching 11.8% of the market, allowing them to continue gaining positions and confirming themselves as an alternative to the consumer by offering quality fresh products, proximity and manufacturer brands.


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