Figure 1 – Scheme of the Jerónimo Martins Group value chain.
The Group’s value chain extends from the production of raw materials to their availability to the final customer, also encompassing the communities in which it operates. Upstream, the Group works with agricultural, livestock and fisheries sector producers, who supply the main raw materials, and with the food processing industry, which is responsible for developing safe and innovative products. At the centre of the value chain are the Group’s own operations, which include the operation of stores and distribution centres, as well as transport and logistics. Downstream, the Group focuses on its direct relationship with customers, ensuring the availability of food and non-food products and promoting responsible and healthy consumption practices. The Group also maintains an active commitment to local communities through social initiatives that contribute to their economic and social development.
The Group is positioned at the centre of the food sector value chain, playing an integrative role between primary production, industry and the final consumer. This position enables the Group to promote more sustainable agricultural and industrial practices, encourage healthier food choices, and contribute to the socioeconomic development of surrounding communities.
This value chain generates a range of inputs originating from its different stages. The main inputs include:
human capital, which is critical to operations;
food products from primary production (agriculture, livestock and fisheries);
processed products purchased from the agrifood industry and processing partners;
energy and natural resources;
technology and infrastructure (information systems, automated logistics and store equipment) needed for store and logistics operations.
To ensure continuity, quality and integrity of inputs, the Group develops a set of multidimensional efforts that include seeking to apply continuous mechanisms for developing the skills of its employees, ensuring safe working environments; establishing long-term partnerships with strategic suppliers (including farmers and local producers) to ensure stability and predictability in commercial relationships; adopt risk management and business continuity policies to safeguard supply resilience (namely regarding sensitive raw materials); create programmes promoting sustainable agricultural practices to strengthen responsible sourcing; and audit and monitoring systems for quality and food safety across the supply chain.
The Group’s main outputs consist of the daily availability of safe and affordable food products and solutions across the different banners through which it operates. These products include a wide range of Private Brand items developed according to rigorous quality, safety and nutritional responsibility criteria, ensuring that consumers have access to options that meet high standards of confidence and transparency. At the same time, the Group provides a range of logistical and operational services that ensure the continuous availability of products, supporting freshness, convenience and operational efficiency throughout its operations.
Value creation extends beyond the products provided, also reflected in the outcomes generated for various stakeholders. For customers, the Group ensures continuous availability of safe, healthy and affordable food, contributing to more responsible consumption choices and promoting balanced eating habits. Employees, meanwhile, benefit from stable employment opportunities, continuous training, skills development and appropriate working conditions, supporting talent retention and employee well-being. Supplier relationships are anchored in stability and predictability through long-term partnerships, technical support and the prioritisation of local producers. This approach strengthens the resilience of supply chains and supports the adoption of more sustainable practices. For investors, the Group maintains a resilient business model built on sustainable growth and the management of ESG risks across the value chain, strengthening investor confidence and corporate reputation. Within local communities, the Group’s operations generate direct and indirect employment, strengthening social cohesion and contributing to the economic development of the regions where it operates. At the same time, the Group maintains social support initiatives aimed at fighting poverty and malnutrition through long-term partnerships with charities and organisations in local communities.
The Group is associated with its material impacts both through the activities it carries out and through the relationships that the Companies maintain throughout the value chain. Climate, waste and circularity impacts arise both from the Group’s own operations and from the practices of suppliers responsible for producing, processing and packaging the products sold. Impacts on communities arise from the physical presence and activities of the Group’s banners, as well as from the way in which partners and external entities conduct operations that influence the territories where the Group operates. Consumer-related impacts arise from commercial decisions on pricing, product quality and safety, and from supplier practices that may influence trust in the value chain. Finally, business conduct impacts arise from the Group’s internal management practices as well as from its relationships with suppliers and partners, which may reinforce or undermine ethical and sustainability standards.
For detailed information about the Group’s strategy, business model and value chain, please refer to “The Jerónimo Martins Group”, “Management Report – Creating Value and Growth”, and “Corporate Governance”. Information on the breakdown of total revenue by significant ESRS sector is provided in note 3.2. “Segments reporting”.