Eroski closed 2022 with a positive result, but the confirmation of a rising cost crisis eroded much of the benefited margin. The Basque cooperative group, which includes Caprabo, reported that last year roughly 5,500 million euros flowed through its operating channels, a rise of about 7% from the prior year, yet still notably below the 2021 figure, with net earnings around 64 million euros after accounting for the year’s dynamics in revenue and costs. This performance reflects a complex environment where revenue growth was challenged by higher expenditure across the supply chain, including rent, transportation, and payroll expenses. Despite a price-sensitive market where even steep price increases could not fully offset rising costs, sales declined by approximately 2%, underscoring the squeeze on profitability from a tougher macro and competitive landscape.
The group attributes the thinner margins to cost pressures and the need to standardize financial results. In the leadership briefing, the Eroski management highlighted that decisions to tighten margins and intensify price promotions were taken to guard affordability for customers while preserving market share. The chief executive officer, Carabell, explained that the strategy involved cost control and aggressive promotional activity as a central response to the inflationary environment. Like many other Spanish retail chains, Eroski has repeatedly signaled that it would pursue efficiency and cost containment as core levers, aiming to keep baskets attractive even as suppliers raise prices. Earlier in the year, the company expanded its promotional program by streamlining offers and, more recently, accelerated a campaign that reduced prices on around a thousand items, signaling a renewed focus on visible value for shoppers.
Despite these efforts, the executive team believes 2022 delivered positive outcomes in the face of ongoing headwinds. By intensifying efficiency and productivity initiatives, the group claims to have achieved consolidation of favorable results and even gained market traction in several regions. The reported gains included increased market share in strategic areas such as Galicia and the Balearic Islands, a reversal of earlier trends in Catalonia, and the maintenance of leadership in Navarre and the Basque Country, according to Carabell. The management also noted that the company would continue to build on its regional strengths and operational improvements to reinforce resilience in a year marked by volatility across retail and logistics networks.
Overall, Eroski’s activity results rose by 10% from the prior period, reaching a level above 204 million euros before taxes and other accounting considerations. While this rise signals ongoing operational momentum, it also highlights the contrast between stronger top-line movement in certain markets and the seasonal, cost-related pressures that affected margins. The company remains focused on balancing price competitiveness with sustainable profitability, leveraging efficiency gains, supply chain rationalization, and selective promotional activity to navigate a market characterized by persistent inflation, shifting consumer demand, and a competitive retail environment across both Spain and neighboring economies. The year’s outcomes are framed as a positive step within a broader strategy to strengthen financial stability and regional leadership without compromising customer value or long-term growth prospects.