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The franchise 'love' the supermarket in Spain and grows 72% in five years

The franchise 'love' the supermarket in Spain and grows 72% in five years

Published in Expansión , 04 - August , 2017 abogados franquicias Franchises of Spain

The number of food stores and supermarkets under this regime has soared between 2012 and 2016, rising from 3,860 to over 6,600 establishments.
The franchise model, so prevalent in sectors such as catering, has fallen madly in love with some of the main Spanish supermarket chains, which are expanding throughout the country to this type of business.
The numbers are eloquent: the number of food stores and supermarkets under this scheme has soared 72% between 2012 and 2016, rising from 3,860 to exceed 6,600 establishments. And rising, despite the recent times have appeared dozens of denunciations of franchisees in this sector.
The data, collected in the report of the Spanish Association of Franchisors (AEF) of 2017, also reflect that for the first time, the number of supermarkets operating under this regime exceeds the number of own stores (just over 6,000).
However, as far as billing is concerned, own-account establishments accounted for 55% of all revenues of these companies in 2016 (about 5.5 billion euros), compared to 45% of those managed by their "partners".
Even so, revenues also show a spectacular evolution compared to those of 2012: franchises sold for € 4.590 billion in 2016, up 54% over a lustrum before.
And although the number of distribution groups that opt ​​for this model fell slightly in the last year, from 67 to 65, far from, for example, the 180 companies in the hotel and catering sector that are betting on this model.
Of the five supermarket chains that lead the Spanish market (Mercadona, Carrefour, DIA, Eroski and Lidl, in that order), three have been seduced by the charms of this model.
The most important bet in global terms is that of DIA, since almost half of its about 7,400 stores worldwide operate under this regime; Only in the Iberian Peninsula the number of franchises currently stands at 2,160 stores.
Although with a smaller number, Carrefour has accelerated the pace to expand its supermarket under the "Express" brand throughout the country, which already has about 550 establishments under franchising; More than a hundred of them are managed today by former employees.
Similar digits manages Eroski, with approximately half thousand franchises of a total universe of 1,800 local.
To these large is added Alcampo with its supermarket slogan Simply, as well as dozens of groups of regional scope, like Caprabo, Condis, Covirán or Miquel Alimentació.
"There is a very strong commitment on the part of the big distribution chains", recognizes the president of the AEF, Xavier Vallhonrat, who considers that they have been "very agile" and fast in finding franchisees.
In his opinion, the fact that he did not need a very technical profile has facilitated this work, and, he recalls, during the economic crisis it was frequent to see how many newly settled immigrants in Spain opted for this business option.
"Distribution is a shelter sector, since it is not the most profitable, but it is the safest for the franchisee because it is an activity without many peaks, without strong ups and downs," tercia the managing director of the consulting firm T4 Franquicias, José Aragonese.
The supermarket groups that have opted for this route have "well-known brands", so it is not necessary to make them known to the general public, although Aragonés warns that the sector also presents some difficulties, such as the complexity of managing the assortment And stocks.
"Before the distribution did not think about franchising, it did not fit into its idea because it had to give the brand to third parties. But now this model has spread to all sectors," he explains.
Both Aragones and Vallhonrat admit the negative impact of the news on allegations of franchisees - especially against DIA, which faces about thirty judicial litigations at the moment, and Carrefour, with about a dozen - although they insist that their number is Small compared to the total and that the percentage of store closures in the sector is "very low".

La franquicia 'enamora' al supermercado en España y crece un 72% en cinco años

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