Boston, MA -- (ReleaseWire) -- 06/30/2014 -- In 2013 current value sales in grocery retailers in Portugal declined by 2%, to reach ?19.8 billion. This was a slightly better performance compared with 2012. The acute drop in the employment rate, along with decreasing consumer confidence and disposable incomes, were the main factors explaining this negative trend. As a result, price and affordability became even more important to consumers at the end of the review period, leading to aggressive promotional strategies from the main retailers with the aim of encouraging customer loyalty. For instance, loyalty cards which provide consumers with special discounts on grocery purchases and in partnership with other companies (such as petrol stations) gained popularity during the unfavourable economic environment and due to the strong increase in fuel costs.
View Full Report Details and Table of Contents
Concentration characterises grocery retailers in Portugal, which is dominated by strong domestic players, notably Sonae Modelo Continente - Hipermercados and Jer?nimo Martins - Distribui??o de Produtos de Consumo. Sonae Modelo Continente - Hipermercados was the leading player in Portugal in 2013, with a retail value share of 19%. The company?s overall lead was mainly attributable to its strength in hypermarkets, the second largest grocery retail channel, in which its Continente brand claimed first place in 2013 with a value share of 44%. This was partly due to the fact that the group behind Continente is Sonae, which owns most of the shopping malls in Portugal. Moreover, it was also the second largest retailer in supermarkets, in which it held a 23% value share. Continente Modelo supermarkets are mainly located in residential and high-traffic areas of Lisbon, which are a high cost per square metre relative to discounters. More expensive locations require a business model which differs from discounters, but this enables the company to sustain its loyalty amongst those consumers who are looking for nearby stores with a wide product assortment.
The most important constraint to growth in the next few years is likely to be the evolution of private consumption, related to the government?s measures to combat the economic recession and the increase in unemployment, which will leave consumers even more strapped for cash. In the short term, the value sales of grocery retailers are expected to continue decreasing, as the recession will continue to impact the purchasing behaviour of Portuguese consumers. Sales are not expected to start recovering before 2015-2016. Also, the main grocery retailers will continue to invest primarily in small formats such as supermarkets and discounters. The value sales of supermarkets are predicted to remain stagnant over the forecast period, whilst discounters is likely to prove slightly more robust, with a value CAGR of 1% at constant 2013 prices.
Discover the latest market trends and uncover sources of future market growth for the Grocery Retailers industry in Portugal with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Grocery Retailers industry in Portugal, our research will save you time and money while empowering you to make informed, profitable decisions.
The Grocery Retailers in Portugal market research report includes:
- Analysis of key supply-side and demand trends
- Detailed market shares for international and locally-based retailers
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- How is grocery retailing performing in Portugal?
- Are consumers switching towards more convenient grocery channels?
- Are independent and family run grocery stores coming under pressure in Portugal?
Reasons to Get this Report
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
Product coverage: Modern Grocery Retailers, Traditional Grocery Retailers.
Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Retailing research reports at Fast Market Research
You may also be interested in these related reports:
- Leisure and Personal Goods Specialist Retailers in Peru
- Grocery Retailers in Turkey
- Retailing in Germany
- Retailing in Poland
- Grocery Retailers in Brazil
- Grocery Retailers in Hungary
- Grocery Retailers in Ireland
- Retailing in Mexico
- Retailing in China
- Retailing in Indonesia