They have recently become the most frequented places to visit among shoppers compared to other establishments, rushing to low-margin essentials and the most modest of vanities. 

Despite the havoc caused by the coronavirus in nearly all business sectors, supermarkets continue to gain popularity, emerging stronger than ever. International chains Aldi, Lidl and Carrefour as well as their local counterparts Mercadona, Eroski and Covirán have been active in their expansion plans, further strengthening their brands by being closer to their target. In the last few months, several branches have opened nationwide. Indeed, they are meeting the demand of the local community, wary of going too far outside their neighborhoods.

For their expansion needs, supermarket brands have started searching for different surface areas in the last few years. They can be small (less than 500 sq m), medium-sized (from 501 to 1,000 sq m) and large establishments (more than 1,000 sq m). Residential location with high footfall is of paramount importance. It is preferable that the premises occupies a single floor level with a loading capacity of 1,000 kilos per sq m. Parking space is not obligatory but desirable.  

In terms of investment, supermarkets have become an attractive real estate product. In fact, local giant Mercadona sold 27 stores under sale and leaseback in Q3 2020, while recently launching another 38 establishments for sale under the same format. In light of recent events, will we see other brands and other sectors follow suit?

Supermarkets have quickly adapted to the current situation. In an attempt to make their customers buying experience more pleasant, they have implemented necessary safety measures of maintaining social distancing, putting hand gel in strategic places and constantly disinfecting shopping carts. Now more than ever they have evolved to offer online shopping and home delivery, adjusting to the needs of their clientele. People are now getting used to this type of commerce. Is the future of supermarkets moving towards online shopping and home delivery?

Meanwhile, consumers have changed their purchasing habits so much, that instead of going daily to a local specialized grocery store (butchers, bakeries, green grocers, fishmongers, etc.), we are now becoming more accustomed to buying everything under one roof. This reduces time spent going from one place to another. We have also become more aware of what we are buying, thanks to a well-thought-out-previously-written shopping list. This, therefore, enables us to make this one-stop shop experience in supermarkets far more convenient. 

Moreover, we have seen premises converted into supermarkets: Aldi on Glorieta de Cuatro Caminos was formerly a bank, Carrefour at Calle Alcalá 396 was an old textile household shop and Lidl at Bravo Murillo 121 used to be a cinema. Perhaps the next trend is to make large vacant spaces into some functional grocery stores?

Finally, there may be a whole new commercial horizon for the growth of supermarkets. There is no avoiding it: based on what we have seen in recent times, supermarkets may just be the new saviors of the retail sector.