If Spanish supermarkets distributed the map in the manner of the well-known series Game of Thrones, the natural region of Eroski would be Winterfell, the northern kingdom. The supermarket chain entrusts its growth to this area of ??the Spanish market over the next three years, in a band of territory that runs between Galicia and the Balearic Islands and where they have a 12.8% share, being leaders in Galicia, the Basque Country and Navarra. and co-leaders in the Balearic Islands. This is what the company calls the northern zone. In Spain as a whole, the chain is fourth in market share, with 6.4%, after Mercadona, Carrefour and Dia. The food distribution company expects to open 159 stores in this area, both its own and franchised, and generate around 1,000 jobs, with an investment of around 450 million between 2024 and 2026.

“Still in this period we do not want to go outside the northern perimeter. We want to consolidate the situation very well. We still have gaps, where we have more authority,” explained Rosa Carabel, CEO of the Eroski group in the presentation of results this week.

Without mentioning it, the truth is that in its reference band it is resisted by communities like Asturias and Cantabria, for example, where the leaders are regional chains and where they can find those gaps. “This area is where our openings have the greatest return in the shortest period of time and, therefore, continues to be our absolute focus,” Carabel assured. The counselor did point out, however, that they will use the franchise system to continue gaining notoriety in the national territory. As of January 31, 2024, its commercial network was made up of 1,533 establishments and had 27,426 workers. During fiscal year 2023, the chain has opened 74 new supermarkets, including its own and franchisees, according to data made public by the company.

With these new openings, the Mondragón cooperative group aims to increase turnover by 4% annually in two years to 6,700 million in 2026. In fiscal year 2023, the company closed with sales of 5,389 million euros, a 6.3 % more than the previous year. The company increased its profit in the period by 70.3%, up to 109 million euros. Gross operating profit (ebitda) exceeded 330 million after an increase of 18.21%. These good results respond to ordinary activity, higher sales income and focusing on process efficiency and improving technology and data analysis.

The company assures that consumers have noticed the strategy of not transferring the entire cost increase to the prices of the products and it has translated into more sales. According to its data, Eroski has transferred savings amounting to 384 million euros to the market through different commercial initiatives such as offers, personalized and exclusive discounts linked to its loyalty clubs, as well as savings plans and benefits linked to families.

But in addition, the participation of Eroski’s own brand in the group’s turnover has grown by five points in the last two years, up to 27%. “Partly because we have opted for our own brand, but above all because the consumer has chosen to consume more of our own brand,” he explained. In this sense, Carabel argued that “obviously in a situation of inflation as important as we have seen, the consumer makes different consumption decisions, more own brand, more offer and pulls more discounts.”

For this reason, at Eroski they consider that their own brand has to help them capture more market share, aiming to recover one point of this share. The group aims to increase own brand sales in this period by around 150 million euros but without eliminating the assortment from the shelves. Its communicated commitment is to maintain a good number of different brands in its offer, which is understood as a wide assortment. The plan for 2026 will still include an investment of 127 million in containing the prices of products, especially fresh ones, such as bread, fruit and prepared dishes. Another 100 million will be allocated to strengthening its technological resources.

The company understands that it has left behind the stage of divestments, which affected its entire network of stores in the southern area. “We have published and communicated that, if we have the opportunity, we will divest. In fact, we have made divestments throughout 2023 and we will continue to do so throughout 2024,” said the counselor. However, these operations are no longer so relevant in its next stage.