Spanish consumers switching retail habits in the cost-of-living crisis

Spain’s retail landscape is changing under the pressures of the cost-of-living crisis, with deal-hunting buyers shopping around different retailers and buying more private label brands, according to Kantar research.

Why it matters

Like much of Europe, Spain has felt the effects of rising inflation and its population is changing its habits accordingly.

For more on responding to inflation, check out WARC’s Economic slowdown and inflation hub.

What’s going on

Insights from Kantar suggest some of the contours of the retail grocery market in the country are shifting:

• Mercadona, Carrefour and Lidl continued to lead retail growth in 2022, with 25.6%, 9.7% and 5.8% market share, respectively.
• As shoppers look for deals, however, all chains have gained footfall and penetration: 49.5% of households say they now shop in different stores to take advantage of the best prices.
• Own-brand market share has grown by 3.1 points since 2021 to reach 41.4%.
• E-commerce sales have declined to 2020 market share levels of 2.6%, still slightly ahead of the 2019 1.9% share.
• Purchases in large-scale retailers grew by 2.3% in 2022, while traditional retail fell by 7.5%. “The chains that are gaining importance as a destination for fresh produce have grown market share,” according to the research. 

A changing landscape

It’s important to note how the performance shifted over the course of the year, with Mercadona’s strong fresh product focus driving up its market share in the first half of the year.

In the second half of the year, however, Carrefour’s convenience locations and the onward march of Lidl and Aldi store openings have expanded the German discounter’s availability.

Of course, Spain’s other major force in retail are regional chains that have been able to stand out because of their ranges of fresh produce and convenient stores.

Overall picture

“The first half of the year was driven by the recovery of out-of-home consumption, which grew by 11.8% compared to 2021, while inflation and the fear of a recession dominated the second half of the year” – Bernardo Rodilla, Retail Client Director, Worldpanel Division.

Sourced from Kantar