In a sector where profit margins are often tight, there is a supermarket chain that is giving to talk. With an increasingly solid presence in Portugal and a historical domain in Spain, Mercado managed to close the last year with profits well above its competitors, thanks to a strategy that escapes traditional models.
Record profits in a competitive market
Mercado, currently the largest Spanish supermarket chain, has closed the 2024 fiscal year with net sales worth 35,605 million euros. This amount represents a growth of 8.35% compared to the previous year. Even more impressive was profit: 1,383 million euros, translating an increase of 37%.
These results put the company in an enviable position in the large distribution sector. The net margin reached 3.88%, which means that the market made almost 4 euros of profit per 100 euros of sales, which represents a much higher number than the sector average, according to.
Ahead of international giants
To get a clearer idea of the size of this feat, just compare with other large international chains. The American Costco registered a margin of 2.95%, Walmart was 2.88%and British Tesco at 2.87%.
In Spain, direct competitors are even more distant: Carrefour got only 0.93% and the day group had even negative results, the same source says.
These data reveal a significant difference in the profitability between the market and the remaining national and international chains.
The strength of efficiency
In a sector where the usual profit margin surrounds between 1% and 2%, Mercado’s success is based on an efficiency -centered strategy. The company bets on a reduced product offer, with great predominance of its own brands: Hacendado (Food), Green Grove (Cleaning) and Deliplus (Hygiene and Beauty).
These brands are not only cheaper to produce, but also build consumer and ensure greater quality control and costs. According to data already released, cited by, these brands even represented more than half of the company’s sales.
Direct relationship with suppliers
Another of the pillars of success is the way the company manages its partnerships. Since the 1990s Mercado has maintained lasting relationships with its suppliers, in a cooperation model that aims at stability and quality rather than constant negotiation and pressure on prices.
This model allows a more efficient supply chain and a better quality/price -related end product, factors that heavily weigh on the choice of consumers.
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Out -of -ordinary logistics and marketing
The bet on the automation of logistics centers is another important factor. Mercado has invested strongly in technology to make their warehouses faster and more accurate, reducing losses, errors and operating costs, the same source.
When it comes to marketing, the company follows an atypical path: it does not do traditional advertising campaigns. Instead, bet on ‘mouth-to-mouth’ and reputation built over the years. According to the aforementioned source, communication with the public is done almost exclusively through the experience in stores and the opinion of customers.
Scale that gives negotiation power
With 1,674 stores scattered throughout Spain and Portugal, the Mercado can also take advantage of its size. This scale allows you to negotiate better conditions with suppliers and maintain competitive prices without sacrificing the profit margin.
This negotiation capacity, coupled with tight control over costs and betting on its own products, explains much of its success in the European landscape of great distribution.
A management lesson in the retail
The case of the Mercado shows that it is possible to grow, profit and maintain competitive prices, all at the same time. The key is in a strict management, with long -term vision and focus on efficiency in all steps, from production to the shelf.
In a market where many survive with minimal margins, the Spanish chain proved that with the right model it is possible to stand out.
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