The German retail chain Lidl has declared itself more patriotic (in terms of purchases) than the Spanish Mercadona and DIA. It says it has become the main buyer of Spanish vegetables, even though it ranks fourth in sales volume in Spain, behind Mercadona, Carrefour and DIA.
Lidl says that the increase in exports of fruit and vegetables to all its international markets (27 countries) makes the chain buy much larger volumes than other supermarkets.
"Last year, we purchased 1.4 million tonnes in Spain. It is an increase of 16%. And much of that increase is due to the higher sales in other markets. Lidl has become a net exporter of fresh Spanish products to the rest of Europe," explains the head buyer of the chain, Miguel Paradela.
85% of the fruit and vegetables that Lidl purchases in Spain ends up in its main European markets, with Germany leading the way. The company doesn't buy fresh produce in Morocco, so Spanish vegetables have become their main option for exports.
The German stigma
Lidl wants to eradicate the stigma of filling the Spanish market with German products; a perception that hurts its image and business.
The retailer assures that only 30% of its products are imported. In addition to fruits and vegetables, much of the fresh produce is produced in Spain. In 2008, that share reached almost 70%.
Lidl wants to become Spanish-oriented, something vital in supermarkets that are internationalised. Juan Roig's Mercadona will apply the same strategy in his landing in Portugal, with brands, ready-made dishes and fresh and processed products targeting the tastes of the local consumer.
Source: economiadigital.es
