Mercadona sparks price war with discounts on over 1,000 products amid inflation de-escalation

Mercadona fuels price war. In the midst of de-escalating inflation, Spain’s leading supermarket chain has made a second cut that it has already surpassed 1000 items on sale in 2024. As the Valencian company announced on Monday, thanks to this solution, which involves a total investment of 150 million euros, they will allow customers to save up to 150 euros a year on their shopping cart.

This is a strategic move for the company he leads. Juan Roig This comes at a time when inflation in Spain appears to be easing. In particular, according to the latest data from the National Statistics Institute (INE), the consumer price index (CPI) fell by two tenths in June from its annual average, to 3.4%. And although food inflation remains higher at 4.2%, it has also eased by two tenths compared to May, as the VAT cut on basic products continues.

In a statement, Mercadona said the decision was “the result of a commitment to reduce retail prices when they occur and to strengthen its sales strategy,” with an investment of 150 million euros in “optimization without affecting quality,” which will contribute to Savings for customers up to 150 euros per year.

Among the discounted products, some products stand out, such as fish, bread, pasta and olive oil. In particular, in the case of this last product, the company today carried out a new reduction in its Virgin and Extra Virgin varieties, which is added to those carried out since January in its three Mild/Intense, Virgin and Extra Virgin varieties, which means that Mercadona has reduced the price of olive oil in its supermarkets by an average of 14%, according to the company’s own estimates.

José Manuel Burguera, director of pricing strategy in the company’s purchasing and recipes department, highlights the work carried out by the purchasing departments, as well as suppliers and inter-suppliers, who specialize in “translating cost reductions into RRPs so that the customer benefits” as quickly as possible. Likewise, he adds that these reductions would not be possible “without the efforts to improve productivity, profitability and management made by 104,000 workers and 3,000 suppliers, because only in this way will the reduction in prices be sustainable for the entire chain without affecting quality.”