Food and Drink Internet Retailing in Portugal

PROSPECTS

Food and drink internet retailing continues to grow but penetration remains low

Although food and drink internet retailing continued to make solid gains in 2018, the channel’s growth was slower than that of internet retailing as a whole due to weaker penetration, especially when compared with other Western European countries. This can be attributed to the wide coverage of store-based grocery retailers and difficulties convincing consumers to go online to purchase perishable products.

Will Portugal see the same strong growth as elsewhere in the world?

According to market specialists, food and drink internet retailing is set to record one of the strongest performances over the next couple of years. In the US, from the moment Amazon bought Whole Foods in 2017, several other players started to invest in the channel.

COMPETITIVE LANDSCAPE

Continente Online remains the leading banner

Continente Online remained the leading banner in food and drink internet retailing in 2018 thanks to having been present in the channel for a number of years. The company enjoys a good reputation, benefiting from the popularity of its Continente loyalty card programme, ongoing investment in services such as click-and-collect, the home delivery of fresh produce, extended delivery hours and online-specific promotions.

Jerónimo Martins’ Pingo Doce banner returns to e-commerce

Two decades after the creation of the first national online supermarket (Pingo Doce Online), which then closed in 2003, Jerónimo Martins announced the return of the brand to the internet channel in 2018 thanks to an agreement with the online platform Mercadão. According to company statements, the widespread coverage of Pingo Doce outlets and the weak penetration of food and drink internet retailing in the country led to the company’s exit from the channel.

Competition increases but the channel remains underdeveloped

The level of competition in food and drink internet retailing in Portugal is increasing thanks to the entrance of Pingo Doce in 2018 and E Leclerc in September 2017. A lack of interest among consumers was for many years a barrier to the entry of new players.

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