Feb 9 • 04:15 UTC 🇪🇸 Spain El País

‘Ultra Low-Cost’ Supermarkets: The Business of Selling What Other Operators Discard

Ultra low-cost supermarkets like Sqrups and Primaprix thrive by selling near-expired products and surplus goods, offering discounts of 50% to 80% compared to conventional supermarkets.

Ultra low-cost supermarkets, exemplified by chains like Sqrups and Primaprix, have carved a niche in the food retail market by focusing on selling products that are often discarded by traditional retailers due to approaching expiration dates or excess stock from manufacturers. These stores operate on a business model that significantly reduces prices, frequently providing discounts between 50% and 80%, which attracts bargain-hungry consumers looking for substantial savings on well-known brands in food, hygiene, and household items.

The business model of Sqrups, as outlined by its General Director Raúl Espinosa, emphasizes recovering otherwise wasted products, presenting a dual benefit: economic savings for consumers and a reduction in food waste, which has positive implications for sustainability. These ultra low-cost retailers are gaining popularity, reporting double-digit growth in sales and opening numerous new stores each year. This trend highlights a shift in consumer behavior towards cost-effective shopping options, especially in the context of rising living costs and economic uncertainty.

As these supermarkets expand, they are not just challenging traditional grocery retailers but also redefining how products are marketed and sold in the food supply chain. By prioritizing value over conventional quality standards and promoting a business model rooted in sustainability, Sqrups and Primaprix are set to play a significant role in the future of retail, potentially influencing mainstream grocery shopping habits and encouraging other retailers to rethink their waste and pricing strategies.

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