The Mercado Supermarket chain, evaluated at about 20 billion euros, is one of the references in the food distribution sector. But how much does the market effectively profit for every 100 euros that customers spend on their stores?
According to the Spanish newspaper for each 100 euros paid by consumers in the market, the company makes a net profit of 3,9 euros.
This value is considered competitive in the large distribution sector, where competition is intense and profit margins tend to be reduced.
How are 100 euros paid to customers distributed?
The total amount spent by consumers in the market is distributed as follows:
- 75,3 euros – Payment to suppliers.
- 12,5 euros – salaries and benefits for employees.
- 5,4 euros – General operating expenses.
- 2,1 euros – Amortization of investments and actives.
- 1,3 euros – Payment of taxes (data related to the Spanish market).
- 3,9 euros – Company net profit.
Comparatively, this result puts the market above other giants of the distribution, such as the Tesco and the Carrefourwhich record lower profit margins.
Business model and competitiveness
Mercado has managed to consolidate its position in the market thanks to a business model based on the logistics efficiency, aggressive negotiation with suppliers and customer loyalty.
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Bet on its own brands, combined with a competitive price policy and cost reduction strategies, has been essential to maintaining a stable profit margin.
In addition, the company stands out for a commitment to innovation and continuous improvement, investing in the modernization of its stores and the optimization of the supply chain.
This balance between cost control and customer satisfaction contributes to the group’s profitability.
Expansion and future of the business
Mercado continues to expand its presence outside Spain, betting on markets such as Portugal, where it already has dozens of stores and a growing customer base.
Internationalization is part of the company’s growth strategy, which seeks to consolidate its position in a highly competitive sector.
Although profit margin may seem reduced at first glance, the operation scale allows the market to reach high turnover volumes, thus ensuring a significant financial return.
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