Posted by: mgeps | May 15, 2010

Some FACTS and CURIOSITIES on the Mercadona History

Mercadona is probably the most famous distribution company in Spain with base in Valencia. It’s name comes from mercado (market in valencian) and dona (women in Valencian).

Mercadona S. A. born in 1977, in the Group Cárnicas Roig, propiety of Francisco Roig Ballester and it’s wife  Trinidad Alfonso Mocholi with the objective to expand the comapny.

In 1981 Juan Roig, one of his sons, buy the company to its father wich at that moment counts with 8 shops in Valencia and with the collaboration of his wife and his two brothers starts the expansion.

Following the number of supermarkets owned by mercadona in different years, which cleraly underlines the company fast growth:

  • 1980–>>3 supermarkets
  • 1990–>>30 supermarkets
  • 2000–>>600 supermarkets
  • 2010–>>1200 supermarkets

Infact the tactic that Mr. Roig wanted to implement was that of growth rapidly. Let’s say it wanted to growth in a OIL SPREAD STRATEGY, which put in practice by buing small supermarkets companies chain in different areas of Spain.

Accordingly to this strategy in 1988 the company adquired 22 Supermarkets of Superette, in 1989 the companies  Cesta Distribución y Desarrollo de Centros Comerciales, in 1991  Dinos y Super Aguilar and in 1998 the ctalan chain Almacens Paquer y Supermercats Vilaró. También se firman alianzas como la aAlso alliances were signed in 1997 with Almacenes Gómez Serrano in order to introduce the comoany into the andalucian market. 

This tactic is much different from the natural way of growth, which consists in buying shops close to your base. Compared with the first this last is much slower.

Nowadays Mercadona covers most of Spain except Galicia, the farest region from the Valencia. It’s true that in Galicia Mercadona is present, but with a really low density compared with the rest of Spain.

As announed in it sinternal review, Mercadona in December 2007 opened its last Distbution Center in Ciempozuelos (Madrid), in which inverted 300 million €. The new centre was inaugurated by the President of the Madrid Region, Esperanza Aguirre (following a video of the inauguration), accompanied by the president of Mercadona, Juan Roig. This centre covers 200.000 square meters and is composed by 9 pavillion of cold and dried products (note: supply chaing are divided in 3 flows: dried products, refrigerated products and frozen products). Within the 9 pavillons results more than 80.000 square meter of contrsucted space and more than 20 floors.

Here above a video of the inauguration of the new distribution center in Ciempozuelos (Madrid) with the Madrid community President Esperanza Aguirre and Mercadona President Mr Roig.

With this new distribution center, Mercadona reinforce its presence its bet for the Region of Madrid, with a center which alone is able to provide more than 400 supermarkets. At present Mercadona counts in Madrid with 75 supermarkets, 22 inside the capital and the rest in the surrounding areas.

In this platform with the modern tcnological support a new logistic concept have been created. While people are buying at the cash of the differents supermarkets, the platform is immeditaly receving data of what is being buy. Goods movement is all automatized, workers don’t have to do nothing, just supervised. The pallets are prepared by the machines themselves, allowing a preparation of 20.000 pallets everyday.

This distribution center is the seventh, after those of Riba-Roja del Turia (Valencia), Antequera (Malaga), Sant Sadurni d’Anoia (Barcelona), San Isidro (Alicante), Huévar (sevilla) y Granadilla de Abona (Tenerife)

Below a link to the video of the Spanish television La Sexta on the ditribution center of Mercadona in Ciempozuelos:

La Sexta – Ciempozuelos distribution center

On eof teh interesting things underlined by the professor is the facts that same goods are stores in different areas, so also in case a machine broke down, they’re always able to serve that good. 

One of the KEY things Mercadona intrroduced in Spain  have been the intersupplier (inteproveedor) a white label producing only for them. Mercadona flow is teh following:

INTERSUPPLIER—>>>(T1)—>>> DCs—>>>(T2)—>>>SHOPS

They realised that trucks of their suppliers were coming back empty after have served the product, so in some way obliged some of their intersupplier to move in the area which was interesting for the company, in order to be moving goods back and forward.

This is somehow the reason why Mercadon is planning the new distribution center in Bilbao.

But, what about the future of Mercadona? Is possibel to affirm that for example Valencian Community is a mature market, cnsumers start to be quite exhausted of the same products of all the life of Hacendado.

This is the reason why the distribution chain will have to change and DISTRIBUTION NETWORKS HAVE TO BE REDESIGNED ALL THE TIME.

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Responses

  1. Dona is Woman in Valenciano and not in Spanish which is mujer. Like Donna, that, by the way, derived in the Doña in spanish that formerly was also a word for woman. How a double n derived into a ñ, can be easily answered by looking carefully to the ñ

    • And where Donna comes from? From the italian?
      Anyway the error have already been corrected. It was clearly a mishap. The post have also been enriched with a lot of interesting information and the videos seen in class.


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