Retailing in Portugal
Euromonitor International's Retailing in Portugal report offers insight into key trends and developments affecting the industry. The report examines all retail channels to provide sector insight. Channels include department stores, food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers, durable goods retailers, and leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of alternative selling channels (kiosks, homeshopping, internet retailing, service stations, vending and direct selling, as available).
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Chapters: 12 | Tables: 94 | Publication date: Dec 2006
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Executive summary
New legal framework allows a new wave of outlet openings
After seven years of strong legal limitations in terms of retailing expansion, the law 12/2004 opened the door for a new phase of outlet expansion for the grocery and non-grocery channels. In 2005 alone, two phases of approval, in June and December, gave the go-ahead to over 500 new outlets. These tend to be located in less penetrated regions of Portugal, such as small to medium size towns and rural areas. This new wave of expansion will likely be the last of its kind on this scale as some of Portugal’s urban areas are already reaching saturation point and a similar situation will occur in other regions if development is not curtailed.
Poor economic performance and harsh governmental measures negatively impact retailing
The poor economic performance of the Portuguese economy along with the need to impose some severe and harsh measures from the government in order to regain the positive path had a negative impact on retailing. With Portuguese consumers experiencing a decrease in disposable income and the rate of unemployment growing to reach a peak of 7%, all add up to strongly limit the ability and willingness to pursue heavy purchase patterns. The shift in the purchase profile was mostly felt in non-grocery and non-store retailing as consumers valued essential goods over non-essential options.
Grocery overtakes non-grocery as purchase profile shifts
During the review period grocery retailing become increasingly important and by 2005 represented over half of total retailing value sales. This shift is in line with the change of the Portuguese purchase profile. The main beneficiaries of this shift were discounters, the top performing format both in terms of grocery and non-grocery retailing. With a very competitive offer and located in close proximity to consumers with free parking, discounters was by far the most dynamic format in Portugal during the review period and is likely to remain so as long as the economic and financial constraints dominate the economic environment. The performance of discounters had another important side effect; it supported the increase in the level of private label penetration.
National companies lead retailing but mulit-nationals dominate
Sonae Distribução SGPS SA and Jerónimo Martins SGPS SA, two national companies, are amongst the top three players in retailing, retaining and reinforcing their positions from the previous year. Sonae is the most important company in the Portuguese retailing industry with a top position both in grocery and non-grocery channels. However, this Portuguese leadership is not followed further down the ranking. International companies certainly dominate, holding seven of the top 10 positions.
Future is uncertain in Portuguese retailing
The future of the retailing industry in Portugal is set to be positive but characterised by relatively low dynamism across all of the main channels. This reflects the high levels of uncertainty that surround the performance of the Portuguese economy during the forecast period. Consumer confidence and expenditure levels are positively correlated with the performance of the economy but this depends on factors such as, the level of demand from Portugal’s main trade partners, the level of increase of interest rates and the level of success of the government’s harsh measures, which are all very difficult to predict.
Table of contents
1. EXECUTIVE SUMMARY
New legal framework allows a new wave of outlet openings
Poor economic performance and harsh governmental measures negatively impact retailing
Grocery overtakes non-grocery as purchase profile shifts
National companies lead retailing but mulit-nationals dominate
Future is uncertain in Portuguese retailing
2. OPERATING ENVIRONMENT
2.1 GOVERNMENT POLICIES
2.2 LEGISLATION
A major legal change promotes a significant increase in the level of industry rivalry
2.3 OPENING HOURS
2.4 RETAILING LANDSCAPE
Main street versus out of town
Shopping centres and malls
2.5 EMPLOYMENT IN RETAILING
Minimum wage
Table 1 Employment in Retailing: 2000-2005
2.6 CASH AND CARRY/WAREHOUSE CLUBS
Key trends and developments
Competitive environment
Table 2 Cash and Carry/Warehouse Clubs: Sales Value 2000-2005
Table 3 Cash and Carry/Warehouse Clubs: Sales by National Brand Owner: Sales Value 2004-2005
Table 4 Cash and Carry/Warehouse Clubs: Number of Outlets by National Brand Owner: 2004-2005
Table 5 Cash and Carry/Warehouse Clubs: Forecast Sales by National Brand Owner: Sales Value 2005-2010
3. RETAILING: RETAIL SALES
3.1 MARKET PERFORMANCE
Overview
Grocery retailing top performer
Positive growth factors
Negative growth factors
Table 6 Sales in Retailing by Sector: Value 2000-2005
Table 7 Sales in Retailing by Sector: % Value Growth 2000-2005
Table 8 Grocery vs Non-Grocery Sales in Retailing 2000-2005
4. RETAILING: COMPETITIVE ENVIRONMENT
4.1 LEADING RETAILERS
Table 9 Retailing Company Shares: % Value 2004-2005
4.2 RECENT MERGERS AND ACQUISITIONS
4.3 CONCESSIONS
5. PRIVATE LABEL
5.1 RETAILERS AND THEIR STRATEGIES
Strategies
Positioning
Penetration
Summary 1 Selected Retailers and their Private Label Brands 2005
6. RETAILING: FORECAST MARKET PERFORMANCE
Overview
Positive growth factors
Negative growth factors
Table 10 Forecast Sales in Retailing by Sector: Value 2005-2010
Table 11 Forecast Sales in Retailing by Sector: % Value Growth 2005-2010
7. MARKET PERFORMANCE: GROCERY RETAILERS
7.1 OVERVIEW
Key trends and developments
Table 12 Average Number of Items Purchased by Visit 2005
Table 13 Average Number of Items per Visit by Weekday in 2005
Table 14 Affinity Index with Retail Channel by Product Category (Average Purchase = 100) in 2005
Competitive environment
Table 15 Brand Affinity Index Amongst Social Classes in 2004
Forecast
Table 16 Grocery Retailers by Sector: Value 2000-2005
Table 17 Grocery Retailers by Sector: Units 2000-2005
Table 18 Grocery Retailers by Sector: Selling Space 2000-2005
Table 19 Grocery Retailers by Sector: % Value Growth 2000-2005
Table 20 Grocery Retailers by Sector: % Unit Growth 2000-2005
Table 21 Grocery Retailers by Sector: % Selling space growth 2000-2005
Table 22 Grocery Retailers Company Shares: % Value 2004-2005
Table 23 Grocery Retailers Brand Shares: % Value 2004-2005
Table 24 Grocery Retailers Forecasts by Sector: Value 2005-2010
Table 25 Grocery Retailers Forecasts by Sector: Units 2005-2010
Table 26 Grocery Retailers Forecasts by Sector: Selling Space 2005-2010
Table 27 Grocery Retailers Forecasts by Sector: % Value Growth 2005-2010
Table 28 Grocery Retailers Forecasts by Sector: % Unit Growth 2005-2010
Table 29 Grocery Retailers Forecasts by Sector: % Selling space growth 2005-2010
7.2 FOCUS SECTOR: DISCOUNTERS
Key trends and developments
Competitive environment
Forecast
Table 30 Discounters: Value Sales, Outlets and Selling Space 2000-2005
Table 31 Discounters: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 32 Discounters Company Shares by Value 2004-2005
Table 33 Discounters Brand Shares by Value 2004-2005
Table 34 Discounters Company Shares by Outlets 2004-2005
Table 35 Discounters Brand Shares by Outlets 2004-2005
Table 36 Discounters Company Shares by Selling Space 2004-2005
Table 37 Discounters Brand Shares by Selling Space 2004-2005
Table 38 Discounters Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 39 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
7.3 FOCUS SECTOR: CONVENIENCE STORES
Key trends and developments
Competitive environment
Forecast
Table 40 Convenience Stores: Value Sales, Outlets and Selling Space 2000-2005
Table 41 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 42 Convenience Stores Company Shares by Value 2004-2005
Table 43 Convenience Stores Brand Shares by Value 2004-2005
Table 44 Convenience Stores Company Shares by Outlets 2004-2005
Table 45 Convenience Stores Brand Shares by Outlets 2004-2005
Table 46 Convenience Stores Company Shares by Selling Space 2004-2005
Table 47 Convenience Stores Brand Shares by Selling Space 2004-2005
Table 48 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 49 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8. MARKET PERFORMANCE: NON-GROCERY RETAILERS
8.1 OVERVIEW
Key trends and developments
Competitive environment
Forecast
Table 50 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 51 Non-Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 52 Non-Grocery Retailers Company Shares by Value 2004-2005
Table 53 Non-Grocery Retailers Brand Shares by Value 2004-2005
Table 54 Non-Grocery Retailers Company Shares by Outlets 2004-2005
Table 55 Non-Grocery Retailers Brand Shares by Outlets 2004-2005
Table 56 Non-Grocery Retailers Company Shares by Selling Space 2004-2005
Table 57 Non-Grocery Retailers Brand Shares by Selling Space 2004-2005
Table 58 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 59 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8.2 FOCUS SECTOR: HEALTH AND BEAUTY RETAILERS
Legislation
Key trends and developments
Competitive environment
Forecast
Table 60 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 61 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 62 Health and Beauty Retailers Company Shares by Value 2004-2005
Table 63 Health and Beauty Retailers Brand Shares by Value 2004-2005
Table 64 Health and Beauty Retailers Company Shares by Outlets 2004-2005
Table 65 Health and Beauty Retailers Brand Shares by Outlets 2004-2005
Table 66 Health and Beauty Retailers Company Shares by Selling Space 2004-2005
Table 67 Health and Beauty Retailers Brand Shares by Selling Space 2004-2005
Table 68 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 69 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
9. NON-STORE RETAILING: VENDING
Key trends and developments
Competitive environment
Forecast
Table 70 Vending: Value 2000-2005
Table 71 Vending: % Value Growth 2000-2005
Table 72 Vending Company Shares by Value 2004-2005
Table 73 Vending Brand Shares by Value 2004-2005
Table 74 Vending Forecasts: Value 2005-2010
Table 75 Vending Forecasts: % Value Growth 2005-2010
10. NON-STORE RETAILING: HOMESHOPPING
Key trends and developments
Competitive environment
Forecast
Table 76 Homeshopping: Value 2000-2005
Table 77 Homeshopping: % Value Growth 2000-2005
Table 78 Homeshopping Company Shares by Value 2004-2005
Table 79 Homeshopping Brand Shares by Value 2004-2005
Table 80 Homeshopping Forecasts: Value 2005-2010
Table 81 Homeshopping Forecasts: % Value Growth 2005-2010
11. NON-STORE RETAILING: INTERNET RETAILING
Key trends and developments
Competitive environment
Forecast
Table 82 Internet Retailing: Value 2000-2005
Table 83 Internet Retailing: % Value Growth 2000-2005
Table 84 Internet Retailing Company Shares by Value 2004-2005
Table 85 Internet Retailing Brand Shares by Value 2004-2005
Table 86 Internet Retailing Forecasts: Value 2005-2010
Table 87 Internet Retailing Forecasts: % Value Growth 2005-2010
12. NON-STORE RETAILING: DIRECT SELLING
Key trends and developments
Competitive environment
Forecast
Table 88 Direct Selling: Value 2000-2005
Table 89 Direct Selling: % Value Growth 2000-2005
Table 90 Direct Selling Company Shares by Value 2004-2005
Table 91 Direct Selling Brand Shares by Value 2004-2005
Table 92 Direct Selling Forecasts: Value 2005-2010
Table 93 Direct Selling Forecasts: % Value Growth 2005-2010