The bids are in for the floor space at the monster building next the Mira-sol station. Actually, there was only one bid, and that was from Mercadona for four million euros. I’m definitely looking forward to a supermarket within reasonable walking distance from our house.
I was talking to someone yesterday about how amazingly profitable Mercadona’s white label products are, as compared to the brand products. On products where customers are not too picky, margins on their own white label brands are as high as 70%. In addition, they take the Southwest Airlines approach to employees, where employees are expected to perform multiple duties, depending on what is in demand at the moment. Eg if someone is stocking shelves and the lines are too long, they are called up as extra cashiers. No wonder they’re expanding while everyone else is playing defense.
No news yet on when they are opening.
1 comment:
Roig cottoned on real fast to the economic situation (and knew it was here to stay) and switched his entire business plan. Among the fallen in his wake are probably numerous food makers of Nueva Rumasa. They specialize in that really low quality, low price corner store stuff. Mercadona's house brands killed them.
I have my doubts as to whether his vertical integration plans will serve him that well into the future, though.
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