Supermarket Supeco jumps in gap European market

In 2012, the French group Carrefour opened its first Supeco supermarket in Spain. Based on a South American concept, the new chain was introduced as a pilot. And it was a success. Over the past few years, the number of branches in Spain increased to four, with Carrefour introducing the chain in Romania as well. A new competitive concept in retail.

The interior of the store is sober, and is not dissimilar to that of a warehouse. The floors are of concrete and products are displayed on pallets. Items can be purchased separately, but the purchase of larger quantities is encouraged: "The more you shop, the cheaper it is." Suppliers can therefore offer the products in larger packaging and thus lower distribution costs.

The concept is a great success in developing countries. In Latin America, Africa and India, the shops do extremely well. Often these stores are owned by international players like Walmart and Casino. Carrefour initially used the concept of Atacadão to shape up underperforming stores in Brazil.

Europe
Now, with the crisis sweeping over the continent, Carrefour is trying its luck in Europe. In Spain, the discount hypermarket is a success with the poorer part of the population. The first Supeco opened in Seville, where the average annual income is around $ 20,000. In other regions, such as Madrid, Catalonia and the Basque Country, the average income lies between 25,000 and 30,000 Euro per year. Supeco is not the only player in this market. Other initiatives include Cash Mas and Mercadona, who are both also competing on price.

According to analysts, Romania is a logical step, as its retail sector is not yet saturated. New chains can still get a foothold. In addition, the discount concept is well established. For example, Lidl in Romania is a success, with large investments in marketing. Italy is also mentioned as the next market for Supeco's expansion. The situation on the Italian market is similar to the Spanish. There is still room for a new chain. The growth of local retail chains validate the potential of the market. In 2012, the Italian chains Coop Italia and Conad grew respectively by 12.6 and 7.3 percent, providing Supeco with positive forecasts.