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Thursday, September 29, 2022

Large distribution over 40,000 million in sales, up 10% in 2021

Spanish large distribution revenue exceeded $40,000 million at the end of the 2021 fiscal year, a figure that represents an increase of 9.7% over the previous year, according to data compiled by Engad, the region’s employers’ union and which represents There are twenty companies including El Corte Inglés, Carrefour, Leroy Merlin or Ikea, which together served 3.2 million customers.

In particular, the invoice of 40,049 million euros practically reaches the figure generated by the sector before the pandemic, 41,423 million, with the recovery reaching 96.6%. Growth of about 10% compared to 2020 is one point above the business average. According to Enged, this was thanks to “the flexibility of companies to adapt products, operations and sales channels to a new reality of consumption”. The main reflection of this new reality is that the number of online shoppers has doubled since 2019.

Employers of large surfaces also highlight that, thanks to this flexibility, they have practically recovered pre-Covid figures. “The measures introduced in our agreement, and mechanisms such as ERTE, have helped companies adjust their activity to the restrictions and, subsequently, increase their workforce,” Engad’s annual report explains. At the end of 2021, the companies concerned employed 234,857 people, which in this case is up from the 2019 figure, which was 233,074 people.

So was investment. Last year, Big Distribution allocated 889 million euros to improve its processes. Of that amount, a third was allocated for its digital transformation. There was an investment of 707 million in the year 2020 affected by the pandemic and the lockdown, while it was 887 million in 2019.

At the end of last year, the 20 companies that made Engad had 7,200 stores and 8.8 million square meters of commercial space, accounting for 12.8% of the total in Spain. The association estimates the drag effect of its activity on the economy at 26,970 million, and purchases from national suppliers at 29,178 million, 73% of the total. In addition, these companies paid 4,030 million in direct and indirect taxes and 6,750 million in wages and Social Security contributions.

Despite improving results, Engad’s president, Alfonso Marie del Val, explained that Spain is a country of large economies in the euro area, lagging behind in the recovery of commercial activity before the pandemic, and points out that, “in the best of scenarios”. We will have to wait till the end of 2023 to get it.

Regarding the economic situation, del Val stated that “inflation is society’s worst enemy, also of distribution, as it depends on trade margins and cuts into income and household consumption.” In this regard, he said that “nobody benefits from inflation” compared to “conspiracy stories and populism”. “If we turn Spain into an enemy country for investment and entrepreneurship, we are on a very dangerous path,” he assured.

Marie del Val also mentions the debate over the shopping cart and the proposal to limit the prices of certain foods. “In recent days we’ve heard with great surprise a completely false diagnosis of food delivery, with companies making an inappropriate proposition to cap prices at the expense of very narrow margins.” Engaged calls for reducing regulatory complexity, especially in criteria that consider companies an additional cost; Avoid new taxes, or subsidies that reduce energy costs.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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