The distribution sector is operating with very narrow margins, leading to a genuine “battle for every cent” in the archipelago. Retailers, regardless of their format or size, are seeking to offset these reduced margins through sales volume, offering more competitive prices on essential shopping baskets.
Major chains such as Spar, Hiperdino, El Corte Inglés, Mercadona, and Lidl have implemented a series of price containment measures. These actions apply to dozens of basic products and, according to sources close to the sector, are borne by both the retailers and suppliers to foster customer loyalty.
“"The battle is for every cent."
Among the notable initiatives, Hiperdino launched a campaign with over 150 products priced at 1 euro, including dairy, yogurts, kefir, cheese, and canned goods. Meanwhile, El Corte Inglés guaranteed a fixed price for 90 days on 300 essential items, which will be renewed after this period. Spar implemented a reduction on 211 products by adjusting the IGIC from 3% to 0% and making an additional adjustment to sales prices, resulting in immediate savings for consumers.
Furthermore, Mercadona announced in mid-month a price reduction on over 100 basic products, such as milk, oil, and potatoes. Other chains like Lidl and Alcampo have also joined this trend, in an effort to stay competitive in the race for customers, especially given an accumulated price increase of 40% since 2021 and the expectation of new government measures to support island families.
