The various "Spar" in Mallorca are mom & pop mini markets with 20% higher prices than the Mercadona or Lidl. Walking outside such a "Spar" one you SEE that this is not you "central-europe-1000 sqm shop" but a rip-off with a Spar label on it.
I haven't paid attention on the ATMs though. I believe that with the prevalence of Conotoxia, Revolut, and the likes, and the fact that everywhere* in Mallorca you can pay with your phone/watch, it makes carrying cash unnecessary
*and I mean flea-market that sells crap that only tourists would buy, or bread/cheese/snacks/etc.
The reality is that there is no big retail spaces near tourist attractions. Or those are much valuable when split up. Thus you end up with smaller stores that do not benefit as much from scale.
If you do not like the prices, just travel enough to find equivalent of Walmart...
- several Palma bus lines (if you don't have the bus card)
- the most traditional bakeries, tailors, dry cleaners and so on
- 95% of the traders in my local municipal fruit and veg market
- 95% of the traders in the largest antiques market
- many cleaners, gardeners, painters, physiotherapists, swim instructors, yoga teachers etc
In addition, many places will offer one price for cash, and another for paying with card, and we know what that's about.
I've had to relearn having cash on my person, otherwise you can't get what you need several times a week.