Pepco and Mere are opening new shops in Valencia. When these two large chains from the East begin to sell, competition in the cheapest segment of the market will increase dramatically.
Opening a new store is usually good news, especially in times of crisis. It has recently been announced that two major European chains are coming to Valencia, but this time they are coming from the East.
Clothing giant Pepco, nicknamed the “Primark” of Poland, has decided to expand its operations to Spain. Due to its port and infrastructure, Valencia was chosen as the basis for its operations. It’s not a small market entrance. Pepco, which started in 2004, has 2100 stores in 13 European markets and intends to add another 400 stores from its base in Valencia, across the Iberian Peninsula, over the next five years. Using a business model similar to Primark and employing more than 20,000 people, the company has already formed its Valencian team and started employing staff.
Pepco usually leases premises between 500 and 700 square metres and locates them in strategic places such as shopping centres or historic centres in cities with a population of more than 50,000. The first stores in La Comunidad Valenciana will be opened in Alicante and Castellon in April, and the Valencia store will be opened a month later.
The company is known for its very competitive priced clothing and special attention to children under 14 years of age. In addition to a wide range of children’s clothing, Pepco also sells toys.
The fact that the entire operation will be carried out from Valencia guarantees quite a few new jobs.
Although the Russian Sputnik vaccine has not yet arrived on our shores, a large supermarket chain called Mere (‘Lidl‘ of Russia) is coming to Valencia this year.
Mere is a Russian supermarket giant with a huge presence in Asia, and its European expansion has recently begun. There are currently shops in Romania, Germany, Poland, Lithuania, Ukraine, Bulgaria, Italy and Greece, and there will soon be shops in Spain.
The company intends to open 10 stores in Spain by the end of 2021 and another 90 in the next four years. The first shops are scheduled to open in Madrid, Murcia, Valencia, Catalonia and Andalusia.
Mere’s strategy is quite simple-to be what Aldi and Lidl used to be. Costs are minimised, goods are sold at huge discounts, and very few people are employed in their shops. Mere may not be a great job generator, but their products are usually 20% cheaper than their competitors.
When they entered the German market, saying they were going to do what Lidl and Aldi had been offering a long time ago, there was scepticism as to whether this concept would survive. Lidl and Aldi started with stores full of narrow aisles, boxes and pallets, without giving any importance to aesthetics. Today, these two giants are increasingly moving into completely different segments of the market, such as healthy and organic food, and Mere has had a huge success in Germany, simply by serving people who are unwilling or unable to pay more.
The entry of these two companies will bring relief to customers who want to get more for their money, but they are likely to further strain Spanish retailers, especially in these difficult times.
© New Shops In Valencia – Polish “Primark” and Russian “Lidl” – TheValencian
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