Updated: Mar 5
The Russian discount retail chain MERE intends to open 40 supermarkets in Spain this year. Its competitive prices make the first reactions to be compared with other discounters such as Lidl, Aldi or DIA.
The economic situation as a result of COVID-19 makes us think at first that it is not a good time to expand our businesses. The MERE discount retail chain , on the other hand, has seen an opportunity in Spain. Its prices are between 10% - 20% lower than that of its competition, and its philosophy is based on a “no frills” model, without dependents, thus prioritizing simplicity.
On their website, they launch a message aimed directly at the need to save in times of crisis, especially in the purchase of essential goods. Opening in the main Spanish cities is its objective and, precisely, Catalonia has become its center of expansion in this first stage of landing.
In Russia, the chain has a total of 1,000 stores and intends to open about 40 in Spain (for now), the first known so far will open in Madrid in May. The Hard Discount is based on an industrial design without shelves, clerks or counters and with the products on pallets and boxes, and have a surface area of between 800 and 1,200 m2, a figure that gives us a clue of the type of locations they will look for to open the first premises.
When it comes to products, they have made it clear from the start that they want to establish strong relationships with national and European suppliers and prioritize constructive collaboration with local producers, manufacturers and contractors. Currently, they are in the selection phase of their suppliers and they want them to be local and simple, far removed from luxury and pretentiousness. However, they completely discard online sales and the creation of their own private label, as other supermarkets such as Mercadona have .
They have compared themselves with other supermarket chains that used this model years ago, but it is evident that the use of boxes on pallets is quite similar to the infrastructure that other establishments such as Costco or Ikea may have. What is clear is that much expectation has been generated among future clients.
Its motto “Low Cost. Every Day ”makes his philosophy clear, although from InfoNegocios we are clear that his arrival will be big.