The modern grocery market in Portugal remains highly competitive, with the major players therein embarking on a rapid pace of store expansion in recent years as market concentration has increased.
The two largest distribution groups, MC (part of Sonae) and Grupo Jerónimo Martins, now hold approximately 50% market share, while if other major players like Intermarché, Lidl, and Auchan are taken into account, this share rises to almost 75%.
In July, the International Monetary Fund (IMF) projected that Portugal's economy would grow around 2% in 2024, with a slight rebound to 2.25% in 2025. However, long-term growth is expected to fall below 2%, hampered by legacy issues, including "low productivity growth, population aging, and subdued investment remain key constraints to higher growth while poverty and inequality need to be addressed", the IMF said.
The IMF also predicted that headline inflation would drop to 2% next year, with "continued buoyant tourism inflows" supporting a current account surplus in the medium term.
In 2023, Portugal saw a record influx of foreign tourists, with 26.5 million visitors, marking a 19.2% increase from the previous year. This positive trend has continued into 2024, with tourism accommodation revenue rising by 15.5% in May compared to the same month in the previous year.
Portugal's consumer price index annual rate stood at 2.8% in June 2024, down from 3.1% in May, according to Statistics Portugal (INE). Prices increased in sectors such as food and non-alcoholic beverages, restaurants and hotels, and various utilities. Conversely, there were downward contributions from furnishings, household equipment, and household maintenance.
Consumer confidence in Portugal increased in June, reaching its highest level since February 2022, after a decline in May, as per separate INE data. The boost in consumer confidence was driven by positive expectations about the country's future economic situation and past household financial situations.
However, perspectives on the future evolution of major household purchases and households' financial situations contributed negatively, albeit slightly, to the overall indicator.
In March of this year, a study found that Portuguese shoppers are increasingly making more frequent trips to the supermarket but purchasing less each time, prioritising lower-cost products in response to inflation. The Kantar study, published by Economia Online, revealed a 6% decrease in purchase volume per trip in 2023 compared to the previous year, which had already seen a significant 13.2% drop.
In response to the economic challenges and to stimulate growth, Portugal's government recently announced a series of measures in July, including tax cuts. According to reports, this move aligns with recommendations from the IMF and the Francisco Manuel dos Santos Foundation, both of which advocate for tax reductions as a means to attract overseas investment and accelerate economic growth.
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: €6.2 billion (2023 – estimated)
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.
The company achieved an estimated 2023 turnover of €6.2 billion, according to Retail-Index, from a multi-format store network comprising 1,401 stores, as of 2023. Its main banners are Continente (urban hypermarkets), Continente Modelo (large supermarkets), Continente Bom Dia (proximity supermarkets) and Meu Super (neighbourhood franchise stores).
Sonae accounted for 3.7% of the overall Portuguese gross domestic product (GDP) in 2022, according to a study by Nova School of Business. Sonae contributed €8.9 billion to Portugal's GDP for the year, while its contribution to total national production amounted to €17.8 billion.
2. Jerónimo Martins
Turnover: €6.12 billion (2023)
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 (€4.5 billion in sales) and Recheio (€1.15 billion). Jerónimo Martins' store network in Portugal consists of 524 oulets, as of this year.
In March, Jerónimo Martins announced plans to invest around €93 million in a bonus scheme for 90,000 of its employees in Portugal, Poland and Colombia. In Portugal, the individual bonus being awarded per employee is €850, 13% higher than the previous bonus paid by the company. The group is also planning to enter the Slovak market later this 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 Portugal posted a 2022 turnover of €2.93 billion. The group operates 265 Intermarché stores across Portugal, and, in recent years, the company has refocused its attention from hypermarkets to the proximity channel.
4. Lidl
Turnover: €2.1 billion (2023 – estimated)
Ddiscounter Lidl entered the Portuguese market in 1995 and has since opened over 271 stores. The company does not publish financial results, but its 2023 turnover was estimated at €2.1 billion, according to Retail-Index.
In May, Lidl Portugal opened its 16th supermarket in the centre of Lisbon, which is also its first within a revamped sports complex. The new store is the result of a partnership between the German retail chain and Os Belenenses, a historic football club in the Portuguese capital.
5. Mercadona
Turnover: €1.4 billion (2023)
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 €1.4 billion in sales from its Portuguese operations in 2023, moving it up a place from last year, with the group operating 49 stores in Portugal at present.
In April, Mercadona announced it is planning to inject €180 million into its Portuguese subsidiary to fund continued expansion plans in the country throughout 2024.
6. Auchan Retail
Turnover: €1.4 billion (2023 – estimated)
Present in Portugal since 1970, when it opened its first supermarket, French retailer Auchan operates 109 stores. It reported an estimated turnover of €1.4 billion in 2023, according to Retail-Index.
In May, Auchan announced it has finalised its acquisition of Dia's Portuguese operations, significantly boosting its store count in the country. With this acquisition, Auchan is expected to become the fourth-largest player in Portugal's food retail market, capturing around 7% market share.
7. E.Leclerc
Turnover: €525 million (2022 – estimated)
E.Leclerc is a French retail chain with a growing presence in Portugal. With an estimated turnover of €525 million in 2022, according to Retail-Index, the company operates 21 stores across the country.
It has moved up one place in rankings since last year.
8. Aldi
Turnover: €500 million (2023 – estimated)
Discounter Aldi has been active in Portugal since 2006, ending 2023 with an estimated turnover of €500 million, according to Retail-Index. It operates 141 stores in the country, as of 2024.
Aldi Portugal is targeting 200 outlets by 2025 and recently rolled out a new proximity format, focused on urban centres.
9. Makro C&C (Metro)
Turnover: €360 million (2023 – estimated)
Makro C&C, part of the Metro Group, operates the Makro banner in Portugal.
With an estimated turnover of €360 million, according to Retail-Index, the company has ten stores in the country.
Present in the market since 1989, Makro Portugal is the Portuguese subsidiary of the German group METRO.
10. SPAR
Turnover: €110 million (2022 – estimated)
SPAR rounds off the top ten this year with an estimated turnover of €110 million and 124 stores, 55 of which are franchises.
SPAR stores in Portugal are predominantly convenience-focused, neighbourhood stores of around 250 square metres in size.
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.
