Spanish food retail chain Mercadona is set to enter the Portuguese capital Lisbon as it continues to expand its presence in the country.
By the end of 2021, five stores are to open in Matosinhos, Valongo, Vila do Conde, Felgueiras and Santa Maria da Feira, all located in the northern Portugal.
The Valencia-based company has now confirmed it will extend its footprint to the Lisbon metropolitan area in 2022, opening two stores in Setúbal and Montijo, for which it has already started hiring staff, according to Spanish daily El Pais.
This will be in addition to the store openings in Guimarães, Braga and Póvoa de Varzim, also planned for 2022.
Despite the pandemic, Mercadona reported record profit and revenue in Spain last year. Turnover increased 5.6% year-on-year to €24.6 billion, while profit was up 16.7% to €727 million.
In Portugal, turnover increased from €32 million to €186 million, but ended in the red with a net loss of €82.9 million (-13.5% year-on-year).
Capital Increase For Portugal
Mercadona has approved a €400 million capital increase for its operations in Portugal to be used for further expansion. Around €150 million will be used this year, up from €113 million in 2020, to open nine shops.
The company has already chosen the location for a second innovation centre (Alvalade near Lisbon) and a second logistics centre (Almeirim), with construction work due to kick-off later this year.
Since its arrival in Portugal in 2019, Mercadona has opened 24 stores, as well as an innovation centre in Matosinhos and a logistics centre in Póvoa de Varzim.