Families across Spain face growing grocery bills as inflation bites, and after fruitless talks between distribution networks and the government to reduce shopping costs, Spain’s leading retailer has chosen to act. Mercadona, the Valencia-based chain steered by Juan Roig, announced a reduction in the prices of 500 everyday items. The move, implemented from April through the year, aims to ease household budgets and aligns Mercadona with similar steps taken recently by Carrefour, Dia and Eroski. A potential savings of up to 150 euros per year for customers is anticipated, signaling a broader industry effort to shield consumers from expensive food costs amid a cost-of-living squeeze. [Citation: Market briefing, company statement]
With groceries 17 percent higher than a year ago, shoppers are watching developments from neighboring markets, including France, where retailers are trying to deliver more affordable baskets of 200-plus items without altering quality. In Spain, hopes for relief rely on price cuts and more efficient supply chains rather than sweeping tax policy changes alone. [Citation: Industry analysis]
Public remarks by vice presidents emphasized calls for lower prices as a priority, while retailers argued that a persistent cost crisis limited how far discounts could go. Critics have framed the conversation around corporate priorities, with some labeling certain business leaders as aggressive on price. Mercadona’s leadership has faced such commentary, yet the company proceeded with the planned 500-product price adjustments to the end of the year, arguing the move helps reduce costs across the board without compromising product quality or the integrity of the supply chain. [Citation: Policy commentary]
Mercadona explains that the discount program does not affect product quality and supports the entire food chain—from suppliers and producers to employees. The company projects savings of about 200 million euros for customers by the end of 2023, while its profit margin is expected to decline by around 0.6 percentage points during the period, on top of a 1.1 percentage point reduction already made since 2020 to counter rising input costs. [Citation: Corporate disclosure]
Daily consumption
Across the stores, discounts extend to hundreds of items found in multiple departments, including canned goods such as tuna, dairy products like certain cheeses and yogurts, nuts, oils, household cleaners and personal care items, pet foods, pastries, wines and fragrances. In fresh produce, Mercadona will seize market opportunities to offer lower prices. Examples include price reductions on items like zucchini, certain fish, and turkey breast, with clear labeling to help shoppers spot deals. [Citation: Retail program summary]
With this announcement, Mercadona joined peers that recently introduced savings measures. Carrefour expanded a France-based promotion that marks the lowest price in its category across a catalog of more than 200 essential items. Dia rolled out weekly promotions offering up to 30 percent savings on over 100 products. Eroski launched a campaign in mid-March cutting prices on as many as a thousand references. [Citation: Industry round-up]
Shoppers who use loyalty programs can still benefit from additional savings. Consuming clubs in the sector operate various discount schemes, and some retailers offer continued promotions on core daily essentials. Stores report ongoing efforts to deliver competitive pricing while maintaining service quality. [Citation: Market overview]
The importance of Mercadona’s price reductions is viewed as a catalyst that could influence rival chains, given the retailer’s leadership position in the market. Trade associations note that many companies are trying to stimulate promotions even as profits are squeezed. [Citation: Trade association commentary]
In the regional context, the Valencia Community Supermarkets Association notes that promotions are being used by many firms to attract shoppers while managing profit margins. This reflects a broader strategy across the sector to balance price competitiveness with sustainability. [Citation: Regional industry notes]