Valencia-based little giant Mercadona makes a 19pc-net profit jump


Spain’s largest supermarket chain increased its turnover in 2011 to €17.831 billion, 8% up from 2010’s figures. The company, whose headquarters are in Valencia, brought some Mediterranean sun over the Spanish economy when it released this week its 2011 results. Mercadona’s productivity growth rate was 2%, earning a profit after tax of €474 million or 19% more than in 2010.

Also, the supermarket has created 6,500 new permanent jobs in 2011, which puts its total workforce to 70,000. Of those 6,500 new hires, about 40% was covered by people aged under 25 years.

In 2011, Mercadona maintained its programme of investment with figures similar to previous years, about €540 million. The company ended 2011 with 1,356 supermarket branches, adding 46 more stores than in 2010. Another important part of the investment was spent in equipment and reform of 39 supermarkets to adapt to the current standards of the company and the completion of works at the logistic block in Villadangos del Páramo (León), Guadix (Granada) and Abrera (Barcelona). By 2013, Mercadona plans to invest €600 million euros, which will be used mainly to open 60 new stores.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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