Spain Distribution Channels

Topics: Retailing, Hypermarket, El Corte Inglés Pages: 5 (1088 words) Published: December 30, 2011
Spain Distribution channels
A. Distributing a product
* Evolution of the sector
The distribution market in Spain is very focussed and specialized.. In 2005, the turnover from retail trade increased to 194 billion Euros which was an increase of 5.6% compared to 2004. Some Autonomous Communities impose restrictions for the establishment of superstores and shopping centers. * Market shares

Distribution in Spain is still characterized by a large number of retailers and traditional stores. Retail trade, which employs 3.1 million persons (2007), is seeing its relative influence in the economy decreasing gradually. Its global turnover reached 194 billion Euros (2005) and was achieved by the 646,000 retail businesses that Spain had (14.6 per 1,000 inhabitants). The distribution sector in Spain has developed a lot with the potential increase of mass distribution (currently in focus) recently, specialized chains and shopping centers. The consumer, whose purchasing power has increased thanks to the economic growth and the decrease in unemployment is looking for the best quality/price ratio and the variety of the offer. The new state of affairs (slower growth and rising unemployment) makes him turn towards discount stores that he had been staying away from. In any case, he continues to prefer local supermarkets to hypermarkets located on the outskirts. Organized distribution is dominated by:

* El Corte Ingles (super stores, hypermarkets, supermarkets and all types of specialized brand names with 25% of the turnover from 10 leaders, * Carrefour (hypermarkets, supermarkets, discount stores) with 20%, * Mercadona (supermarkets) with 15%,

* Eroski-Caprabo (hypermarkets and supermarkets) with 12.7%, * Inditex (ready-made garments : Zara, etc.) with 11%, * Alcampo (hypermarkets and supermarkets) with 7.3%, etc. *

* Organizations in the retail sector
National Association of Mass Distribution Companies(ANGED)
Types of outlet

* Hypermarkets, supermarkets and superettes
Located in city outskirts. Both food and non-food products are found here. Superettes are smaller retail outlets than supermarkets and are located in cities. Carrefour, Eroski, Alcampo

* Specialized superstores
Hypermarkets specializing in a family of products.
Pronovias (wedding dresses), Fnac Spain (cultural products), Decathlon (sports goods).

* Departmental stores
Located downtown on several floors. There are different specialized departments. El Corte Ingles
* Shopping centers
Located in city outskirts or downtown. Usually you find a hypermarket and a shopping mall here. Madrid Shopping Centers, Barcelona Shopping Centers.
* Discount
Mainly for food products. They offer distributor brand products or unbranded products. They are preferred for their discount prices. Lidl, Aldi, Dia
* Retail traders
Local specialized stores: grocery store, butcher's store, fish shop, fruits and vegetables store, cheese store, delicatessen, baker's store, cake store, florists. Preferred for the quality of their products, the human touch and their suggestions and advice. B. Distance selling

* Most popular forms of direct marketing
E-mail, phone, telemarketing, teleshopping, mobile phone.
* Type of products
All types of products including food products
* Evolution of the sector
The total turnover of direct selling in Spain was EUR 440 million in 2009. The sector employs around 185,000 people. E-commerce is rapidly developing in Spain: this sector has grown by 30% in 2006 compared to 2005 and its growth potential is very significant. 38% of internet users buy online, which means 17 million e-buyers for a turnover of 3 billion euros. Net-buyers are usually 31-49 year old men having completed higher studies and belonging to the middle or upper class. They spend on an average 523 Euros per year per person. The products in high demand are travel tickets (36.5%), show...
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