premiumprix is a supermarket chain with dozens of establishments spread throughout different Spanish provinces. She is considered the "queen of the happy discounts«, that is to say, its policy is based on offering great deals and discounts on surplus items. We tell you all the details of this business.
The implementation in Spain of a new model
premiumprix has introduced a concept in Spain that in other countries, such as the United States, is the order of the day. It is not a conventional supermarket, it could be defined as a top brand outlets. In 2014, the Luxembourg capital company opened its first store in Alcorcón. And from there it spread throughout the Community of Madrid, until it reached the over a hundred locations with which it currently has.
Despite this, its implementation in our country it is very residual compared to other supermarket chains. Through the loudspeaker of the establishments, it will be possible to listen to how the operation and success of the business is explained to the client. The trick of this type of business is to travel to other countries looking for surplus products and liquidations of stocks. This is how they can be sold cheaper in Spain.
customer mistrust
Although it is a successful business model, it is true that it also mistrust reigns in some consumers. anyone who enters premiumprix It will be launched first to look at the expiration date. And it is that, some of the products are sold cheap because they have a very close preferential consumption date. However, the customer ends up buying it.
The supermarket employees make extra guidance work to the consumer. Especially with older people, who are the ones who consume the most in these stores. They guide you through the halls explaining the benefits buying in this type of business, showing them that everything meets the quality standards recommended by the authorities.
Primaprix bestseller
According to the data offered by the Association of Manufacturers and Distributors AECOC, in 2020, premiumprix minted a sales volume of ninety million euros, a increase of 86% compared to the previous year, which got around fifty million. All this thanks to the opening of new stores in different cities. Thanks to these data, the chain has managed to position itself in the thirteenth place in the ranking of Spanish supermarkets.
The business model attracts a very price sensitive customer, currently augmented by the war in Ukraine and the COVID19 pandemic, but that does not give up buying brands. The motto of the company emphasizes that it can be buy well, but invest little. According to the data handled by those responsible for the company, it is estimated that the customer can save between thirty and forty percent in the shopping basket.
The heyday of low-cost
As we have already said, citizens are looking more and more at their pockets when buying, and not only premiumprix Bet on attracting these customers. More and more supermarket chains are betting on low-cost in their products. Nowadays, four brands compete for a market which is getting wider and wider. Dealz, Lidl and Aldi are the main competitors of the Luxembourg chain.
Dealz is the main competitor, since it is next to premiumprix who is dedicated exclusively to this type of business. Aldi and Lidl continue to combine the happy discounts with the traditional sale. For years, the white marks also have an importance capital on consumer shopping lists, but they don't want to give up top brands either.
The difference between Dealz and premiumprix is that the first works in the style of a "one hundred percent" bazaar, that is, has fixed prices marked. As we have verified, the consumption habits of the citizen are changing, especially in times of economic uncertainty, so there are businesses that are knowing how to hit the key. Now that you know more, do you find this business concept interesting?
