Retailers in Spain forecast a Black Friday with pre-covid sales

Retailers in Spain forecast a Black Friday with pre-covid sales

Retailers in Spain are forecasting a Black Friday with pre-covid sales and higher average prices.

Technology and home equipment companies in Spain are foreseeing a “value-added” Black Friday and higher average prices due to the increase in costs (raw materials and energy) and, above all, tensions in the supply chain due to the lack of chips from China and problems with transport.

Companies such as Media Markt and Leroy Merlin, which have a lot of weight in sales during Black Friday and Christmas, say that they are not going to transfer the rise in their costs to prices in order to preserve the essence of this discount campaign, however, there will be products with a higher average value.

Samuel Gonzalez, purchasing director of Media Markt, says that this Christmas “we cannot afford to pass on increases to the product and we are juggling with this.”

“Another thing is that there is an innovation on a product to which you give an added value and this makes the average price go up.”

Eduardo Nussio, director of markets at Leroy Merlin, says: “We have spent months adapting our supply chain and anticipating so as not to have to pass on these increases. This moment is an opportunity to make a cost revolution, on packaging, for example.”

For Daniel Molero, director of B2C sales at Samsung, “the challenge for manufacturers is to provide value, but this is going to strain many companies that do not have the capacity to adjust their chain.”

He does foresee, like other managers, an increase in the average price of products on Black Friday, but because “there will be products with a greater component of innovation.”

“The new proposal of distribution is to offer different solutions in innovation, technology or sustainability,” said Manuel Royo, marketing director of Beko, a brand of electrical appliances.

Technology and home equipment companies have been building up their stock for months to avoid delays in product shipments in the coming months.

The rising cost of shipping from China, supply problems in many Asian factories and the microchip crisis may cause some “very specific problems with a particular product, but not generalised,” says the Media Markt executive.

Food companies warned yesterday of the risks of rising costs and recognised that they are passing the increases on to the price of their products.

Thank you for taking the time to read this article, do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.

FacebookTwitterRedditWhatsAppTelegramLinkedInEmailCopy Link
Go Back
Written by

Laura Kemp

Originally from UK, Laura is based in Axarquia and is a writer for the Euro Weekly News covering news and features. Got a news story you want to share? Then get in touch at [email protected]