The image shows the facade of a PrimaPrix store in Madrid with a sign that says "More than an opportunity, a crush" and a box with a photo of a middle-aged bald man.
CONSUMER AFFAIRS

Confirmed: Carlos Villar's Big Secret, Owner of Primaprix, Comes to Light

Carlos Villar's Business Approach at Primaprix: How a Disruptive Strategy Is Changing the Industry

Primaprix has managed to surprise many in the supermarket world, achieving impressive expansion in a short time. Its unique business model has allowed it to make its way in a market dominated by food giants. As the chain grows, the secret behind its low prices and its offering of top-brand products has been revealed.

Carlos Villar, co-founder and director of Primaprix, has been key in creating a disruptive model that has changed the way discounts in supermarkets are understood. Unlike other chains, Primaprix doesn't rely on private labels to offer low prices but works with recognized brands from around the world. But what is the key to its success?

Facade of a PrimaPrix store in Madrid with products visible through the windows.
Primaprix Sells Surplus of Brands at a Good Price | PrimaPrix

The Business Model That Has Revolutionized the Market

The secret of Primaprix lies in its ability to obtain products from major brands at reduced prices. The company buys production surpluses, liquidations, discontinued products, or those with packaging changes, allowing it to offer discounts of up to 70%. This approach has been essential for the chain to stand out from the competition and obtain top-brand products at much lower prices than other supermarkets.

Carlos Villar has explained on various occasions that the business model of Primaprix has no mystery, but is based on direct agreements with manufacturers throughout Europe. These agreements allow them to access products that, for various reasons, fall outside the traditional distribution circuit. Instead of discarding them, manufacturers sell these products at a lower price, and Primaprix makes them available to its customers.

Interior of a store with shelves full of products and promotional posters on the walls.
Charles Villar and Primaprix have managed to convince many customers | PrimaPrix

One of the advantages of this model is that the product offering constantly varies, creating a sense of exclusivity for customers. The rotation of products and the continuous search for purchasing opportunities have been key factors in the company's success. "What you see today may not be there tomorrow," they comment from the company, a strategy that has managed to build customer loyalty and maintain a constant flow of sales.

Expansion and Continuous Growth

The success of Primaprix is reflected not only in its business model but also in its impressive growth. In 2023, the company reached a turnover of 279 million euros, 43% more than the previous year.

Currently, Primaprix has more than 230 stores in Spain and continues to expand, with constant openings every year. Additionally, the company has made the international leap, starting operations in France in 2022 and bringing its Primaprix Beauty cosmetics brand to this country in 2024.

Facade of a PrimaPrix store with customers at the entrance and products visible inside.
Charles Villar's strategy is to negotiate directly with manufacturers | PrimaPrix

The company has managed to make its way in a market as competitive as food, where many other supermarkets rely on intermediaries for supply. By working directly with manufacturers, Primaprix has been able to reduce costs and offer more attractive prices for consumers.

The company has also emphasized sustainability; however, it has always pointed out that its main objective is to offer quality products at affordable prices for everyone. Primaprix's model has shown that it is possible to grow business-wise by following these patterns.

➡️ Consumer Affairs

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