Eloise Trenda
Research Expert covering global food topics with a focus on the French, Spanish, and LATAM markets
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The history of the now-retail-giant Mercadona starts in the 1970s when a man and his wife (Roig Ballester and Trinidad Alfonso Mocholí) decided to take their family-run butcher shops and make them into grocery stores. Since then, through educated acquisitions and making use of the market’s continuous innovations, Mercadona has established itself as the largest supermarket chain in Spain.
Top of the rankings in many categories, Mercadona owes its success to several factors, including its specific approach to retail.
Aside from trying to fill the market’s perceived gaps, Mercadona has also strived to keep up with technology. The chain was the first Spanish company to introduce bar code scanners in the early 1980s and has had an online shop since 2001. This continuous investment in digitalization also enabled the introduction of online ordering and home delivery, among other features. These characteristics, combined with the company’s interest in customer and employee satisfaction, have made what Mercadona is today.
“El jefe” of Spanish supermarkets
Present throughout Spain and Portugal, Mercadona generated revenues exceeding 27.4 billion euros in 2021, a significantly higher figure than some of its competitors like Carrefour or Lidl. The Spanish chain is also the number one employer on the market, as well as the one providing the highest gross salary.Top of the rankings in many categories, Mercadona owes its success to several factors, including its specific approach to retail.
The Mercadona formula
One of the company’s distinguishing features is its strong vertical integration strategy. Indeed, Mercadona has a tight grip over its supply chain: the company owns several factories and production plants in charge of its private label products, allowing it to have more control over their quality and variety. For example, it was one of the first supermarkets to create its own line of gluten-free products in Spain when such goods were still hard to come by in the country.Aside from trying to fill the market’s perceived gaps, Mercadona has also strived to keep up with technology. The chain was the first Spanish company to introduce bar code scanners in the early 1980s and has had an online shop since 2001. This continuous investment in digitalization also enabled the introduction of online ordering and home delivery, among other features. These characteristics, combined with the company’s interest in customer and employee satisfaction, have made what Mercadona is today.
