Claudia Saumell, Madrid, Bord Bia-Irish Food Board

Amidst the economic downturn in Spain, retailers are attempting to increase their market share, through constant price readjustment in order to gain new customers and increase loyalty.

Discount outlets have undoubtedly been the great winners. The total market share of Aldi, Lidl, Dia and Mercadona reached almost 31% in 2012. This is significantly higher than the market share in 2001, which stood at 17.5%.

Alongside price, another key driver for today’s consumer is Private Label. The discounter’s have strengthened their private label positioning in terms of image, as consumers start to endorse private labels as an excellent option with good value for money. Lidl’s private label chocolate J.D. Gross recently won a blind taste test, scoring better than many well known brands.

In 2012, 239 new discounter outlets opened in Spain. At present Dia has 203 retail stores, while Lidl and Aldi are investing in opening new outlets and refurbishing their older stores to create more spacious and efficient units to improve the consumer’s shopping experience. Aldi started its expansion in the center of the country with plans to open 21 new outlets in the Madrid area.