Spanish supermarket competition between Mercadona and Carref

Retail competition between major Spanish supermarkets Mercadona and Carrefour has intensified following consumer observations of price disparities. Social media comparisons and studies by the Organization of Consumers and Users (OCU) have highlighted significant cost differences for basic goods, noting that food prices have risen by 33% over the last four years. In one viral comparison, a monthly basket of goods cost €304.81 at Carrefour compared to €271.43 at Mercadona. In response to market pressures, the two retailers have adopted divergent strategies. Carrefour has launched a permanent ‘Precios Imbatibles’ (Unbeatable Prices) campaign, offering price guarantees on 1,000 basic items to challenge competitors. The company is also focusing its corporate structure on its ‘golden triangle’ of core markets, including Spain, France, and Brazil. Mercadona has focused on long-term infrastructure and inventory management, announcing a 3.7 billion euro investment to modernize stores into a ‘Tienda 9’ format, emphasizing fresh products and logistics automation. To maintain a focused inventory of approximately 9,000 references, Mercadona has also removed certain products, such as specific sauces and frozen items. Recent market analysis indicates shifts in consumer behavior. While Mercadona remains the market leader with a 27.4% share, it has experienced a 0.8% decline in shoppers. Meanwhile, competitors such as Consum, Dia, and Lidl are gaining customers, with Consum increasing its buyer base by 1.6%, Dia by 1%, and Lidl by 0.5%. Data from Worldpanel by Numerator regarding the first eight months of the year confirms this trend. While Mercadona maintains its 27.4% market share, it saw a 0.8 percentage point decline in shoppers. Conversely, Lidl increased its market share by 0.4 points to 7.5%, driven by growth in fresh products and large baskets. DIA and Consum also saw market share increases of 0.3 points each, reaching 4.1% and 3.9% respectively.