Weak Spanish Recovery Means Mercadona Expected To Remain As An Outperformer

Spanish retail operator Mercadona has posted steady growth in sales and earnings for 2010, despite the difficult economic backdrop. For the 12 months to the end of December Mercadona registered a 6.3% increase in gross sales, which came in at EUR16.5bn, while net income came in 47% higher at EUR398mn. The firm invested EUR600mn during the year to open 46 new outlets and revealed plans to open a further 65 new outlets in 2011. This growth is evidence of the firm's successful low cost business strategy, which has done well during the downturn and is likely to continue performing strongly

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