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Mercadona’s activity generates 1.7% GDP and 3% employment in Spain

The economic report analyzes the direct, indirect and induced impacts

The Spanish supermarket chain, Mercadona, directed by Juan Roig, achieved a turnover of 22,915 million euros in 2017, 6% more than the previous year and contributed to the direct creation of approximately 84,000 jobs. However, the real economic impact generated by Mercadona goes beyond these figures when taking into account the indirect and induced impacts generated through its production chain (via purchases made to its suppliers, and these in turn to theirs and so on).

The impact analysis of Mercadona’s economic activity developed by the Ivie estimates the total economic impact of the Valencian firm in terms of value added (income) and employment, classified into direct, indirect and induced impacts. According to the report, Mercadona’s activity represents an economic impact of 19,519 million euros of income (value added), which represents 1.7% of Spain’s GDP, and generates a total of 544,594 full-time jobs, equivalent to 3% of Spain’s total employment. Over the total impact on employment, 16% corresponds to Mercadona’s workforce, 68% to indirect jobs and 16% to induced jobs.

The service sector is the most benefited by the impacts produced by the supermarket chain, concentrating 72% of GDP and 71% of employment, followed by the agro-food industry which represents 18% of GDP and 21% of employment.

The report, carried out by Ivie Researcher Joaquín Maudos in collaboration with Eva Benages, reveals that every euro of income generated by Mercadona’s supermarkets, as wages, profits and rents, results in €5 for the Spanish economy. In addition, for every job created by Mercadona, 6.4 jobs are created in the Spanish economy.