Mercadona answered Spain's crash with fewer products at lower prices — and won a decade

Mercadona grew from Francisco Roig's 1977 butcher shops; in 1981 Juan Roig and his siblings bought the eight stores from their parents. In 1993 he launched the SPB model — 'Siempre Precios Bajos' (always low prices) with Total Quality management — which meant killing all advertising and promotions, and putting 'El Jefe' (the boss: the customer) first. Own brands arrived in 1996 (Hacendado, Bosque Verde, Deliplus). By end-2008 Mercadona was already Spain's biggest supermarket: 1,210 stores, 61,500 staff on permanent contracts, revenue above €15 billion (+10%).

Then September 2008 hit: for the first time since the 1993 reform, turnover and customer counts went negative. Juan Roig's response was the opposite of defensive. He ran a full assortment review and cut 800 of the ~9,000 stock-keeping units (400 own-brand, 400 national-brand lines); he cut basket prices about 10% across four months (October 2008–February 2009), passing every saving to 'El Jefe' — the company touted the cuts as a €100 million-a-month stimulus to Spain's economy; and he left permanent employment and the interproveedor supplier agreements untouched.

The crisis turned into a share grab. In 2010 Mercadona's market share hit 22% — the only big chain to gain, against Carrefour's 18.3% — on 1,310 stores and €16.5B of sales. It kept the discipline through the decade: a 'brutal transformation' program (€10B of capex 2016–2023), entry into Portugal (2019), and by 2023 gross sales of €35.5B (+15%) with €1.0B net profit. In 2024 revenue reached €38.8B, profit €1.38B (+37%), share 28.2% across 1,674 stores and 110,000 staff.

From 22% (2010) to 28.2% food-and-grocery share (2024); revenue €35.5B (2023) and €38.8B (2024) with €1.38B profit — Spain's dominant grocer.

Crisis flips consumers to everyday-low-price; Mercadona's cost structure — lean SKUs, own brands, supplier co-innovation — let it cut prices and protect margin at once.

'Give the boss the saving' made price leadership a mission, not a margin decision — the money the ad budget would have spent went to staff and training instead.

Downturns are share windows: the retailer that can cut prices without cutting margins takes share for a decade — assortment discipline and supplier partnership beat scrambling for volume.

Mercadona outgrew every rival through the crisis and after: 2023 gross sales €35.5B with €1.01B profit (+39%), 2024 revenue €38.8B with €1.38B profit and a 28.2% share across 1,674 stores and 110,000 staff; Portugal (from 2019) passed €1.8B in profitable sales. Juan Roig owns 55.66% and the private company still operates with no advertising budget.