Mere, the Siberian discount chain that wants to conquer Western Europe, recently opened its first stores in Spain. RetailDetail founder Jorg Snoeck visited one of the stores and analyses the concept, which combines features of Aldi and Action. And the prices? Well…
Overstock and large packagings
“The Mere stores are sober and sparsely furnished, but you can really not call them substandard”, Snoeck concludes after a visit to the store in Aldaia (Valencia). “The store is neat and orderly and the employees, who can be recognised by their red company shirts, are friendly. We counted four at the time of our visit – labour costs are not that high in Spain, of course. A large part of the assortment is displayed on pallets, the other products are on simple shelves. For chilled products, there is a refrigerator of about 30 sqm, a bit like Colruyt in Belgium. The store has three cash registers and is open from 9 am to 9 pm. There is not a lot of comfort though: the entrance doors do not open and close automatically, for example…”
Mere is a bit of a combination of an Action and an Aldi from the old days. There is a lot of non-food, mainly textiles, household goods and decoration, as well as washing and maintenance products. The food range is a mix of imported (mainly – but not exclusively – Russian) products and local offerings, including some big international brands. Mere does not sell fresh fruit and vegetables or bread, but it does sell packaged chilled products (dairy, meat products) and frozen products. Many food products come in large packs: lentils and rice per 5 kilos for example, or liquid soap in 4.5 kg bottles.
For bargain hunters
Cadena de supermercados de descuento (literally: “chain of discount supermarkets”), is how the retailer calls itself on its opening flyer with the slogan “Best prices every day”. On offer: Glow liquid dishwashing detergent (an Indian export product, 69 cents for 1.5 l), Herr Klee dishwasher tablets (from German private label producer Clovin Group, 4.99 euros for 102 pieces), but also Spanish cheese from Montaña de Riaño, coffee capsules from local family-run Café Jurado (2.19 euros for 20 pieces) and the well-known beer brand Cruzcampo.
Mere is not your one stop destination for weekly shopping: the ever-changing assortment is too incomplete for that. Come in with a shopping list, and you will probably find that about half of it is not in stock. Bargain hunters who like to be surprised by sharp deals, however, will be delighted. It must be said: Mere is cheap. Very cheap. You can buy Coca-Cola at 48 cents per 33 cl can, although in packs of 24. Pringles cost 1.42 euro per 165 gram tube. Spanish eggs cost 2.09 euro per carton of 30 pieces, while potatoes come at 2.39 euro for five kilograms.
Western European offensive
The Russian price breaker now has five stores in Spain: three in Valencia (Aldaia, La Pobla de Vallbona and L’Alqueria de la Comtessa) and further in Parla (Madrid) and Santiago de la Ribera (Murcia). This month, number six will open in Petrer (Alicante). Mere is transparent about its ambitions: the chain wants to open ten to fifteen stores this year, to have a hundred within four years. The company says it is looking for store premises between 800 and 1,000 sqm in cities with more than 15,000 inhabitants.
The store openings are part of a major Western European offensive: the retailer also wants to open stores in Belgium, France, Italy, the United Kingdom and Austria this year.
