These supermarket chains face rising costs and intensified scrutiny as inflation accelerates across Spain. The surge in electricity, fuel, grain, and oil expenses is pushing consumer goods distributors to find ways to curb price hikes while protecting margins and reputations.
The chief executive of the Employers Association for supermarkets, Ignacio Garcia Magarzo, notes that fierce competition in the Spanish market has so far helped limit increases in shopping baskets. Yet he warns that the current climate has overwhelmed the industry’s ability to prevent price rises. He explains that the sector cannot shoulder the challenge of restoring consumer confidence alone and that the underlying causes require government action. A small group of five industry leaders has outlined a set of countermeasures still awaiting a formal government response.
Food VAT rebate
In a market where prices are climbing, Asedas advocates tax relief measures to dampen the rise. It suggests temporarily reducing value-added tax from 10 percent to 4 percent for some of the increase, arguing that higher consumer spending will generate more VAT revenue if prices go up. The association also calls for a moratorium on certain taxes or fees affecting the sector, including charges on fluorinated gases, water, waste, non reusable plastic containers, recycling collection, and in-store packaging costs. There are concerns about future bans on plastic containers for fruits and vegetables under 1.5 kilograms, new product placement quotas, and installation requirements for electrical charging points well ahead of European mandates.
Identifying the essential nature of food distribution
Asedas urges a change to Retail Trade Law to recognize the sector as critical to public service, granting firms the ability to act decisively in situations of supply risk. This stance emphasizes the duty of entrepreneurs to safeguard continuous service when disruptions occur and to preserve access to essential foods for the population.
Energy at sustainable costs
Distributors call for special treatment in energy pricing. The cost of energy is a major driver of overall expenses, yet distributors should not be categorized as fully energy intensive. The Asedas plan argues that sector firms must keep operating under price fluctuations and should not be forced to pause production. The proposal includes differentiating the impact of natural gas and electricity prices, allowing participation in generation tenders, and limiting taxes tied to emissions. It also supports accelerated deployment of renewable energy projects to stabilize long term costs.
Safe and guaranteed transport
Recent transport stoppages have added uncertainty for businesses involved in distributing consumer products. The Employers Association supports securing reliable distribution while balancing the right to lockout and strike with the needs of a strategic sector like food distribution. This approach ensures goods move efficiently while preserving the ability to negotiate fuel price provisions and other sector-specific solutions.
Access to raw materials
Efforts to speed up imports of substitute products from diverse sources are being advanced, with progress noted yet calls for a coordinated approach across ministries. Temporary and practical steps may include expedited import procedures and more flexible labeling within a faster administrative framework to support affected sectors during periods of disruption.