Portugal’s retail sector (food and non-food) registered annual growth of 3.8% in 2017, reaching €20.3 billion worth of sales for the year.
The data was reported by the Portuguese Association of Distribution Companies (APED), in its latest Sales Barometer.
Food retail saw a 3.9% increase in sales to around €12 billion, with the highest growth seen in the Beverages category (+8.5%), followed by Hygiene and Cleaning (+4.1%) and Grocery (+4%).
Sales in the non-food retail segment were €8.2 billion (+3.8%).
The market share of private label brands reached 33.4% last year, a 0.1% increase, while manufacturers brands accounted for 66.6% (-0.1%).
Channel Performance
Supermarkets are still the most important distribution channel in the country, holding a market share of 49.8%, followed by hypermarkets (26.5%) and discounters (14.9%). Promotional activity accounted for 45% of food retail sales (+1.2%).
Elsewhere, a Nielsen study indicates that FMCG sales grew by 4.1% in Q1, with manufacturer brands (+4.6%) growing above private label brands (+3.2%).
Beverages were the most dynamic category in Q1 (+5.8%), with Alcoholic (+6%) and Non-Alcoholic beverages (+5%) growing at roughly the same pace, with manufacturers brands (+6.2%) growing at a faster rate than private label (+3.8%) in this category.
According to Nielsen, the economic climate in Portugal is currently favourable, with an increase of GDP and consumer prices, which has been supported growth in tourism activity. Consumer confidence increased significantly, reaching unprecedented figures in recent quarters.
Finally, data from the National Statistics Institute (INE) shows that the retail trade turnover index for Q1 saw a year-on-year change rate of 5.1% (4.3% in February).
Food products saw an annual growth of 6.2% (3.6% in February), while non-food products grew by 4.3% (4.9% in February).
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
