Letter from Agustín Markaide

President of EROSKI

A new era begins, to strengthen and advance the EROSKI project

2021 was, like 2020, a year in which plans were not a useful guide for action. And everything points to 2022 following this pattern. Managers’ and professionals’ expertise had to respond to a succession of changes, often in the opposite direction of those produced 12 months before, and it must be said that the results obtained by Eroski were very positive both in its own achievements and its contributions to society.
EROSKI has reached the end of an era and is beginning another. The economic situation has been continually growing stronger and the financial year 2021 shows one of the best gross results of the last decade. Likewise, the financial situation has also developed favourably and the balance sheet at the end of the year shows a bank debt of less than 1,000 million euros. We are embarking on a new era with a fresh outlook and more options for action. This is a phase in which we intend to strengthen the foundations of our activity and move firmly forward in its development.

2021: Moving towards post-pandemic normality

In 2021 the food industry moved closer towards much desired and aimed for normality. Still suffering from the effects of the pandemic, we have improved our sales by just more than one point over This year, food retailing companies have given back some of the market share borrowed in 2020 from other sectors and, as a result, we have seen a reduction in the market. Despite this, we
have strengthened some practices and trends that we have been keeping an eye on, such as the increase in online channels or commitment to local produce.

However the near future is uncertain

The tragedy of the war in Ukraine, in Europe, will directly affect millions of people and we must be alert and provide the necessary social support and attention. In addition, inflationary trends, which already existed prior to the war, are exacerbated and will affect everyone in the food value chain and, ultimately, the population at large. We must try to cushion consumers from the effects of inflation
by improving the efficiency of our internal processes. However we also have a responsibility towards the upstream sectors, the companies and farms, which are also subject to these inflationary pressures and must be able to pass on retail prices to them so they are able to sustain their activity. The new balance we achieve in the value chain must respond to all the needs in play, among them
those of a population threatened in their buying power and who will react to those not doing well.

Expansion gains pace

The rate of expansion for new shops is becoming more active: we have opened or enlarged 15 shops and renovated 141. These are all in the north of Spain, defined as a priority area for action and which covers a wide strip from Galicia to the Balearic Islands. All comply with high standards of sustainability.

In addition, there are 65 new franchises among which the ultralocal format, Rapid, has undergone significant growth.

The incorporation of EP Corporate Group as a partner in Supratuc allows us to strengthen the future of our project in the Balearic Islands and Catalonia and, in the coming months, this will be reflected in commercial performance.

Towards healthier and more sustainable food

Health, the environment and social commitment are the three linchpins which are essential to understand our way of doing business here at EROSKI.

Since in 2018 when we laid the ground for a healthier and more sustainable environment in our 10 Commitments, every year is a challenge. Over the last twelve months we have seen our customers’ shopping habits improve since the introduction of the Nutri-Score nutrition label. The nutritional improvement of our products is essential to encourage healthier habits. This is why we have removed all palm oil from our own-brand products in what has been an excellent example of collaboration with our food suppliers.

As you know, health protection has been a key topic over the last two years, but this reality has not removed other social challenges which are now coming back with a vengeance. For example, decarbonisation, to which EROSKI has committed with the promise to be carbon neutral by 2050.

The debate and social construction which EROSKI joins, explicitly contributing to the achievement of the Sustainable Development Goals, are a common purpose shared with our associates and clients. This is the only way to understand the response we have received in the elaboration of our Solidarity Plan 2022. More than 12,400 clients have helped us to choose the social causes we will participate in this year. Thanks to the contributions of customers and those of EROSKI, we have allocated more than 13 million euros to different social causes to combat inequality, help those who need it most and prevent food wastage.

The enormous commitment of EROSKI’s people

EROSKI’s employees have experienced difficult and demanding times. EROSKI’s people have responded to society with quality and warmth. The gratefulness of our clients has been unanimous and we are proud to form part of this magnificent team.

Our cooperative project has been strengthened recently, we have incorporated new partners which will reach 2000 over the next five years. They embody the spirit of customer service to meet the population’s needs.

New era. New leadership

We are beginning a new era with new leadership. Rosa Carabel, General Director EROSKI, is responsible for leading the new era with the aim of reinforcing the basics and advancing in the project’s goals. I have no doubt that, under her leadership, the soul of the business will continue working to serve the mission and strategy of this cooperative business project which aims to improve consumer health and the sustainability of our actions and those of the whole value chain.