Alex Trelinski
A REGIONAL supermarket chain that once had over 600 shops in Spain has announced its closing down.
El Arco is pulling down the shutters in its 29 remaining stores in Asturias as well as two logistics platforms.
The retailer that has traded for nearly four decades was only bought by the Cuevas Group a year ago.
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Staff were said to be in shock with stores being shut as soon as stocks run out.
The news follows the recent announcement that the French chain Alcampo is downsizing its operations in Spain.
Many regional and small independent supermarkets are feeling the pinch through tough competition from major operators like Mercadona, Lidl, and Aldi.
Their purchasing power to get supplies does not come close to the ‘big boys’ and that’s leading to closures.
Market concentration and the dominance of the big players, who have their own suppliers and much greater bargaining power, is squeezing out their smaller rivals.
El Arco is a good example of that.
Founded in 1987 in Sama de Langreo, El Arco began as a family business which specialised in fruit, vegetables and fresh products.
At its height in the early 2000’s, it had over 600 outlets, mainly across northern Spain.
But the rise in competition coupled with rising costs caused a spectacular decline, leaving it with just 29 shops, which are now closing.
