Spain: Mercadona's continuous adaptation
Mercadona, the leading retail chain in Spain, waived of its profits in 2017 to invest more than 1 billion euro and create 5,000 jobs.
In 2017, the company reduce its profits by half because it allocated 1 billion euro to adapt itself to the new market demands. In particular, Mercadona earned 322 million euro (-49%) investing twice as much (+47%) as it did the previous year. Its improvements are financed by its own sales resources. Its turnover grew by 6% in 2017, reaching almost 23 billion euro.
Last year, the supermarket chain created 5,000 jobs and its current workforce overtakes 84,000 employees, representing 3% of total employment in the country (including indirect jobs). Mercadona accounts for 1.7% of GDP and its taxes contribution is more than 1.4 billion euro.
In the next six years, the Valencian-based retail will invest 8 billion euro to undertake the " greatest modernization plan" in its forty years of history. Its business strategy is based on product innovation, new logistics facilities, modernization of its stores, digital transformation, improvement in fresh produce selection; in addition to this, the first four stores in Portugal will be opened in 2019.
Sources: El Mundo and El País