Despite the challenging and unpredictable economic circumstances, the modern food retail market in Portugal remains highly competitive. There is notable promotional activity and a rapid pace of store expansion.
Over the past decade, market concentration has significantly increased. The two largest distribution groups, MC (part of Sonae) and Grupo Jerónimo Martins, now hold approximately 50% market share. If other major players like Intermarché, Lidl, and Auchan are taken into account, this share rises to almost 75%.
Inflation has normalised somewhat in Portugal over the course of 2023, with the Consumer Price Index (CPI) standing at 2.12% as of October 2023, however food prices have remained higher than normal. CPI figures indicate that unprocessed food (i.e. fresh food categories) prices were 3.96% higher in October compared to the same period last year.
The Portuguese government has intervened to keep prices as low as possible for shoppers – in April 2023 it cut the VAT rate on a list of 46 essential items, such as milk, bread, rice, tomatoes and some meat and seafood products, from 6% to 0%, and in September, this measure was extended to the end of the year.
"The measure contributed to reducing prices. We want to keep controlling the price of essential food products to help Portuguese families," then-Prime Minister Antonio Costa commented in September. Costa has since been ousted from his position due to an investigation into alleged corruption.
Consumer confidence decreased as the year drew to a close, Statistics Portugal found, with a positive spike in October only proving to be a blip in an otherwise downward momentum between August and November. However, the economic climate indicator increased in November, after declining between July and October.
Here's an overview of the top ten supermarket retail chains in Portugal, according to their most recently-available full-year turnover. All data is supplied by Retail-Index.
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1. MC
Turnover: €5.978 billion (2022)
Since opening the first hypermarket in Portugal in 1985, MC, which is part of the Sonae conglomerate, has developed into the leader in the food retail sector, with a market share of around 26%.
The company achieved a 2022 turnover of €5.98 billion, according to Retail-Index, from a multi-format store network of 1,342 stores, of which 984 are company operated. Its main banners are Continente (urban hypermarkets), Continente Modelo (large supermarkets), Continente Bom Dia (proximity supermarkets) and Meu Super (neighbourhood franchise stores).
In 2021, Continente was the first European brand to open a store with no check-outs or product scanning, under the Continente Labs banner.
Read More: Sonae's MC Arm Sees Sales Up 9.6% In Third Quarter
2. Jerónimo Martins
Turnover: €5.657 billion (2022)
Jerónimo Martins operates in the food distribution and specialised retail sectors in Poland, Portugal and Colombia.
In its home market, the group operates banners including Pingo Doce (€4.05 billion in sales) and Recheio (€906 million), which are market leaders in the supermarket and cash & carry segments, respectively.
Pingo Doce holds around 21% share of the market. Jerónimo Martins' store network in Portugal consists of 464 Pingo Doce and 38 Recheio stores.
Private label products were responsible for 35% of sales at Pingo Doce (under brands such as Pingo Doce and Go Active) and 26% at Recheio (brands include Amanhecer and Masterchef). The chairman of Grupo Jerónimo Martins is Pedro Soares dos Santos.
Read More: Jerónimo Martins Aims To Open In Slovakia Next Year
3. Os Mosqueteiros
Turnover: €2.93 billion (2022)
Food retailer Intermarché is part of Grupo Os Mosqueteiros, the Portuguese unit of French retail group Les Mousquetaires.
Intermarché posted a 2022 turnover of €2.93 billion, and has a 11.1% market share in Portugal. The group operates 261 Intermarché stores across 18 districts, and, in recent years, the company has refocused its attention from hypermarkets to the proximity channel.
Its PorSi private label brand consists of over 3,300 SKUs, and accounts for 26% of the group's sales. The chairman of parent group Grupo Os Mosqueteiros is Pedro Subtil.
4. Lidl
Turnover: €1.9 billion (2022, estimated)
German discounter Lidl entered the Portuguese market in 1995 and has since opened over 260 stores, achieving an 11.7% market share. The company does not publish financial results, but its 2022 turnover was estimated at €1.9 billion, according to Retail-Index.
In 2021, Lidl opened the chain's first store in a motorway service area in Europe, located in Oeiras (A5), in partnership with Brisa. It has also been opening proximity stores in train and metro stations in Lisbon. The retailer plans to invest €100 million to open its first stores in the autonomous region of Madeira during 2023.
Private label accounts for around 80% of Lidl Portugal's assortment and brands include Milbona, Três Velas, Fumadinho, Chef Select, Terra do Vento, and Cien. The CEO of Lidl Portugal is Alexander Frech.
Read More: Lidl Portugal To Raise Wages For Store And Warehouse Employees
5. Auchan Retail
Turnover: €1.155 billion (2021)
Present in Portugal since 1970, when it opened its first supermarket, French retailer Auchan operates 65 stores, of which 21 are franchised. It reported a turnover of €1.15 billion in 2021, according to Retail-Index.
Its network consists of three hypermarkets, four supermarkets and 30 My Auchan ultra-proximity stores, in addition to 29 petrol stations. Auchan Retail Portugal has a 5.9% market share and employs 8,479 people. The chief executive of Auchan Retail Portugal is Pedro Cid.
In August 2023, Spanish-owned chain DIA announced plans to exit the Portuguese market, selling its operations to Auchan Retail.
6. Mercadona
Turnover: €789 million (2022)
Since its arrival in Portugal in 2019, Spanish supermarket chain Mercadona has set a goal of opening 10 new stores per year, targeting around 150 to 200 outlets in total.
Mercadona reported €789 million in sales from its Portuguese operations in 2022, where the banner holds approximately 3% market share.
The banner ended the year with 29 stores in Portugal, nine more than in 2020. Each store offers around 6,000 SKUs, of which private label accounts for 50%.
Read More: Portuguese Consumers Prefer Mercadona For Grocery Shopping, Study Finds
7. DIA
Turnover: €583 million (2021)
Spanish retailer DIA has been present in Portugal since 1993, when it acquired local discounter Minipreço. The company's net sales in Portugal stood at €583 million in 2021.
DIA operates 499 stores in Portugal, of which 202 are company-owned and 297 franchised, and holds a market share of 8.3%. In 2021, the group launched a new proximity store concept, renewed its private label brand and strengthened its relationship with franchisees. At group level, DIA has 6,800 private label SKUs, adding 2,000 new references in the last two years.
DIA announced its plans to exit the Portuguese market in August 2023.
8. E.Leclerc
Turnover: €525 million (2022, estimated)
E.Leclerc is a French retail chain with a small presence in Portugal. With an estimated turnover of €525 million last year, according to Retail-Index, the company operates 21 stores in the country.
9. Aldi
Turnover: €450 million (2022, estimated)
Discounter Aldi has been active in Portugal since 2006, ending 2022 with an estimated turnover of €450 million, according to Retail-Index. On average, the company opens around 20 stores per year.
Aldi Portugal is targeting 200 outlets by 2025 and recently rolled out a new proximity format, focused on urban centres.
The company does not disclose financial figures, but according to some estimates has a 4.2% market share in Portugal. Wolfgang Graff is the CEO of Aldi Portugal.
10. Makro C&C (Metro)
Turnover: €400 million (2022, estimated)
Makro C&C, part of the Metro Group, operates the Makro banner in Portugal.
With an estimated turnover of €400 million, according to Retail-Index, the company has ten stores in the country.
About Retail-Index
Retail-Index is a specialist supplier of management information on consumer retail markets, provided by Veraart Research Group in the Netherlands. Its mission is to supply managers with up-to-date key information on retail markets in Europe and support them in their international expansion.
The company dates back to 1964, when it started as a market research and marketing consulting company for consumer products and services. In 1989, it started publishing written reports on various retail sectors in Europe. As of 2005, it publishes its information on retailers through the online database and curated datasheet exports available on www.retail-index.com. A team of researchers manages the data to reflect upon current developments in the markets, collected from an extensive number of sources.
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© 2023 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.
