Mercadona lowers prices but has ruled out a price war with other supermarkets such as Aldi and Lidl.
The Coronavirus has seriously affected consumer habits over the last year and has seen the cost of many everyday items increased due to logistical issues faced during confinement. Many supermarkets have gone months without any promotions or offers, but now food prices are starting to fall.
Market leader Mercadona has started to lower prices, particularly in the areas of fresh food such as vegetables, fish and meat. They have also lowered the cost of some packaged products. Currently Mercadona lead the market with a share of 24.5 per cent.
According to the company the reductions will be between 10 and 25 per cent and they explained that “At Mercadona, our daily struggle for the last 40 years has been to provide our bosses (the customer in the company’s jargon) with products of outstanding quality at unbeatable prices”.
They also explained how “always Low Prices is our strategy to have competitive prices without entering into promotional battles or aggressive offers, which in the medium term do not benefit the sector”.
Florencio García, Retail Director at Kantar is predicting that some supermarkets will be entering into price wars in the coming weeks. Lidl has already made some permanent price reductions and insisted that, “these reductions complement the policy of discounts and promotions that the supermarket chain already applies on a regular basis in order to always offer its customers the cheapest shopping basket”.
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