Families continue to feel the pinch from rising grocery costs as the battle between distributors and government for lower shopping bills goes on. In Spain, Mercadona, the leading supermarket chain run by Juan Roig, is taking a proactive step to soften inflation’s impact. The Valencia-based retailer has announced a price reduction across 500 daily-use items. This initiative could help shoppers save up to 150 euros per year, aligning Mercadona with similar moves from Carrefour, Dia, and Eroski in recent weeks.
With food prices up about 17 percent from a year ago, many citizens wonder how to assemble a basket of over 200 essentials at the lowest possible price. The push has come amid limited progress beyond selective VAT reductions on certain foods in Spain. Leaders Nadia Calviño and Yolanda Díaz have urged distribution firms to lower prices, while chains argue that a cost crisis constrains margins. Critics from Podemos have labeled some executives as ruthless capitalists, intensifying the political heat around the industry.
After significant debate, Mercadona decided to act by adjusting prices on 500 products from April through the end of the year. The company argues that the move preserves product quality and sustains the entire food chain, including suppliers, producers, staff, and the business itself. They project about 200 million euros in savings for customers by the end of 2023, while the impact on Mercadona’s margins is expected to be modest, around 0.6 percentage points, on top of a 1.1 point reduction already implemented since 2020 to counter rising origin and industry costs.
Daily consumption
Discounts apply to 500 items, with many marked in stores across several departments. The price cut covers a wide range of everyday foods and goods, including canned tuna, dairy products such as certain cheeses and yogurts, nuts, oils, household cleaners, and personal care items. Fresh produce will also see selective price reductions when market conditions permit, with examples like zucchini, certain fish, and turkey breast highlighted for pricing adjustments.
Mercadona’s announcement places it among a group of recent measures by other major chains. Carrefour has extended a low-price promotion in France, featuring a catalog of more than 200 essential products at the lowest price in its category. Dia has launched weekly promotions reaching up to 30 percent off on more than 100 products. Eroski was an early mover, launching a campaign in mid-March to reduce prices on as many as a thousand references.
Consumers across the sector increasingly rely on store loyalty programs. For instance, Consum operates a membership card that yields discounts for a large portion of its customers and participates in regional trading incentives. Masymas maintains a pricing policy stated to be among the cheapest in its market, while Alcampo conducts ongoing price research to justify its competitiveness. Other retailers such as Aldi and Lidl have yet to disclose similar offers in this round of promotions.
The rising push from Mercadona is seen as a catalyst that could prompt broader action across the sector, given the retailer’s prominent market position and influence. Industry observers note that promotions often come at the expense of profits, a dynamic that all players in the chain continue to balance carefully. The Valencia Community Supermarkets Association highlights that promotions are a common tactic used by firms to attract customers, even as margins are pressed lower.