Spanish supermarket group Mercadona is investing in expanding its store network and strengthening its back-end infrastructure as it looks to grow sales in the Spanish market.

The company is currently investing in opening stores, with 65 new outlets planned in Castilla and Leon, and has opened a EUR200m (US$282.6m) distribution centre in Villadangos del Páramo, Leon. The distribution centre will supply its locations in northwestern Spain, the company confirmed today (24 March).

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“Our strategic investments will better our ability to serve customers and allow us to reach new [consumers],” a spokesperson for the company said.

Mercadona hopes to grow sales and increase its share of the Spanish grocery market by expanding its store footprint, the spokesperson confirmed.

Earlier this month, Mercadona reported a 6.3% increase in gross sales during fiscal 2010. During the year, the grocer invested in the region of EUR600m in expanding its store network, opening a total of 46 outlets, and reducing prices, with average prices down 4% across its product offering. The company booked net income of EUR398m during the fiscal, up 47%.

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