Mercadona reduces private label prices to compete with Lidl and Aldi

Mercadona has implemented price reductions on dozens of its private label products to maintain market leadership and combat customer loss to competitors such as Lidl, Aldi, and Carrefour. This marks the second time this year that the company, led by Juan Roig, has chosen to reduce margins on its shelves.

The price cuts, ranging from five to forty cents per unit, target essential household items including dairy, oils, canned goods, vegetables, cleaning supplies, biscuits, and chocolate. Specific examples include extra virgin olive oil and various milk products. This strategic move follows shifts in Spanish household penetration rates, as consumers increasingly diversify their shopping to find better deals.

In addition to price adjustments, Mercadona is expanding its product assortment with several new releases. These include cleaning products like percarbonate with bicarbonate, new coffee options such as Peru Origin capsules, various sweets including jelly beans and chocolate bars, and new beverage options like tropical juice.