Spanish supermarkets face 110 million euro energy cost increase

Spanish supermarkets have incurred approximately 110 million euros in additional energy costs since the onset of the conflict in the Middle East, according to the Spanish Association of Distributors, Self-Services and Supermarkets (Asedas).

Retailers are attempting to absorb these rising expenses—which include electricity, fuel, freight, and certain raw materials—to prevent significant price hikes for consumers. This effort is driven by high market competition in Spain, which acts as a buffer against inflation. However, Asedas notes that absorbing these costs impacts company profitability and margins.

While general inflation in Spain reached 4.3% in August, largely driven by fuel, food inflation remained lower at 2.3%. Transport costs have seen a significant increase, rising over three percentage points to a 9.5% annual variation, the highest level since August 2022. Additionally, products dependent on plastic packaging are facing high cost pressures.