Home confinement and remote working as a result of the pandemic in Portugal changed consumers’ behaviour in 2020. This was reflected in the performance of the dominant department store chain El Corte Inglés (in value sales terms).
Marques Soares, a historic brand in Porto's traditional retailing landscape, and the only competitor to El Corte Inglés within department stores in Portugal at the end of the review period, also witnessed improving sales in 2021 following a double-digit decline the previous year due to the significant reduction in footfall to its stores and the absence of tourists. Nevertheless, the retailer counts 40,000 active customers who own a Marques Soares loyalty card, which helped to sustain its business in 2020; indeed the 14-store chain recorded a lower value sales decline compared to El Corte Inglés due to its larger network.
El Corte Inglés maintained its strategy of promotional campaigns in 2021 to attract consumers. It also celebrated 20 years in Portugal with the launch of “Peça um Desejo” (Ask a Wish) campaign: from 8-20 October, all customers who made purchases equal to or greater than EUR20 at El Corte Inglés in Lisbon, El Corte Inglés in Gaia Porto, its supermarket brand Supercor or through the website elcorteingles.
Boosted by the gradual recovery of the national economy linked to the rise in tourism flows, department stores is predicted to continue to record increasing value sales to fully recover and surpass pre-pandemic levels (at constant 2021 prices) by 2024. Nevertheless, competition from other channels will remain fierce.
The project that El Corte Inglés has planned for the land formerly occupied by Boavista railway station in Porto, will go ahead, after the Porto City Council confirmed during 2021 that it will not reverse its decision. The retailer will build a large commercial department store, a hotel and housing, as well as other commercial interests and services.
The consumption of luxury items was developing favourably before the emergence of the pandemic, both from domestic sources and affluent inbound tourists. This niche segment is expected to resume growth as an important area of business for department stores.
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Understand the latest market trends and future growth opportunities for the Department Stores industry in Portugal with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Outlets selling mainly non-grocery merchandise and at least five lines in different departments, usually with a sales area of over 2,500 sq metres and arranged over several floors. Example brands include Macy’s, Bloomingdale’s, Marks & Spencer, Harrods, Sears, JC Penney, Takashimaya, Mitsukoshi, Daimaru, Karstadt, Rinascente.
See All of Our DefinitionsThis report originates from Passport, our Department Stores research and analysis database.
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