Bon Preu Case

BON PREU: Social commitment, Innovation and Growth1

Oriol Amat i Salas, UPF Pilar Soldevila i García, UVIC Summary Bon Preu is a family owned business known for its social commitment, innovation, investing and fair prices. This case study explains the main features of the business model and the measures taken to face the recession. All of these measures are the best for achieving growth. The case explains, among other aspects, the acquisition of the Intermarché shops in Spain and the financing of the operation. With this, we try to explain a real case of a company that has been able to continue growing, even during years of recession. Key words Business model, Cost reduction, Financing, Growth

1. Introduction Group Bon Preu has a long track record in the world of retailing in Catalonia. For over thirty years, the company has acquired the experience and knowledge to meet the needs of its customers at all times. Brothers Joan and Josep Font continued the family business of trade in fish that their parents had begun earlier. This trade was carried out in public squares and markets. Through time, the brothers transformed the company into a food retailing group that has never forgotten the essence of a family business and its Catalan legacy. Today, these characteristics remain as current as when the family business began and now have become an element of differentiation versus most competing companies. Thanks to its commercial vocation, Group Bon Preu has always had a deep understanding for the upcoming needs of consumers in the country. The company has responded quickly to changes, has been innovative, and has always sought ways to ensure the identity values of civil society. The first Bon Preu supermarket opened in Manlleu in 1974, and by late 2010 Bon Preu had 151 stores with more than 4,200 employees and 750,000 customers per week. Figure 1 shows the main events of its history in chronological order. It is currently the largest company in number of workers in...