After two years of decline, Spain’s food retail sector is experiencing a resurgence, with a 25% increase in store openings in the first quarter of 2025 compared to the same period in 2024.

A total of 244 new supermarkets, convenience stores, and hypermarkets opened since January, according to a report by the Spanish FMCG retail and wholesale sector association (Asedas), based on Retail Data.

Experts predict 850 total openings for 2025, a 10% jump from 2024 and the highest number since 2022.

In 2024, 778 new food retail stores opened – a 1% decrease compared to 2023 – bringing the total to 25,585 outlets, or a net increase of 352 compared to 2023.

This expansion is driven by the intensely competitive nature of the sector, with the annual investment for expansion estimated at around €1.3 billion, accoriding to the report.

Growth Trends

While supermarkets and convenience stores continue to dominate, representing 98% of the food retail network, their growth patterns differ.

Supermarkets saw a net increase of 215 locations, reversing the downward trend of 2023, while convenience stores added a net 134 stores, marking five consecutive years of growth.

In contrast, hypermarkets are stagnating, with only three net openings since 2021 as retailers adapt their strategies to focus on smaller store formats (around 4,000 sqaure metres) located in secondary shopping centres.

Regional chains are the primary drivers of supermarket growth, with the top 25 increasing their retail space by over 10% since 2021, significantly outpacing the sector average of 4.3%.

These chains, a unique characteristic of the Spanish food retail landscape, now operate over 10,000 locations, ensuring healthy competition at the local, provincial, and regional levels.

Franchises and cooperatives have also contribute significantly, accounting for 60% of new store openings in 2024, according to the study.

This growth is particularly important for rural communities (towns under 10,000 people), where a third of these new stores are located.

Mid-sized, regional retail chains are also experiencing significant growth in Spain. The study analysed 25 of these companies, which have seen their average retail space increase by more than 10% since 2021, significantly outpacing the sector’s overall 4.3% growth.

These ‘regional leaders’ play a crucial role in ensuring healthy competition at the local, provincial, and regional levels, preventing market dominance by a few large players.

Grocery Stores

Food retailers are continuing to expand their presence in rural Spain, with the number of store openings. exceeding that of closures. Local grocery stores serve 3,500 municipalities, covering 96.8% of the Spanish population, data showed.

Between 2020 and 2024, rural towns (under 10,000 residents) saw the opening of 1,117 new food stores, representing 23.6% of all new food retail locations.

Of the 320 companies analysed, 214 operate 10 or fewer stores, and another 51 have between 11 and 50 locations. These predominantly family-run businesses are vital for maintaining competition and balance at the local and provincial levels, and they often champion the consumption of locally sourced products.

Leading Spanish food retailers saw profits of €2.141 billion in 2023, with an average profit margin of 2.37%. The majority (60%) of these companies achieved profit margins above 2%, and a third exceeded 3%.

The sector, represented by Asedas, is also working with the Spanish government on emergency preparedness protocols, focusing on securing transportation, energy, and information flow to prevent panic buying, following incidents like the 29 April blackout.

The 19 Asedas member companies operate nearly 20,000 supermarkets, self-service stores, and wholesale food outlets, along with two major purchasing centres.

They account for 75.3% of such businesses nationally, managing almost 11 million square metres of retail space.