Driven mainly by small independent fixed price stores, usually referred to as “Loja dos 300” or Chinese-owned independent variety stores, variety stores witnessed a notable value sales decline in 2020. The Chinese-owned stores had already started to experience a decline in footfall and sales before quarantine measures had been introduced by the government in Portugal, as news reports via newspapers and television detailed a new and dangerous illness emerging in China, leading to negative perceptions amongst local consumers.
Despite some modernisation of traditional variety stores with larger outlets focusing on more attractive displays and more expensive and higher-quality products, the channel maintains a low level of innovation in Portugal. Limited or non-existent investment in marketing strategies or online platforms make it difficult for variety stores to compete with the likes of modern concepts such as Flying Tiger Copenhagen.
Flying Tiger Copenhagen retained its overall leadership of a highly fragmented channel in 2021. Present in Portugal since 2012, the brand had been enjoying increasing recognition through a wide range of modern, practical and fun-based goods as well as its expansion policy over the review period.
Positioned as offering low prices, variety stores may benefit from lingering price sensitivity over the early part of the forecast period following a loss of local consumers’ disposable incomes. This is likely to increase footfall as price-sensitive consumers search for more affordable offers, resulting in a full recovery of value sales (at constant 2021 prices) by 2025.
Although variety stores will continue to be dominated by independently-owned outlets, it is possible that there will be some movement towards a greater concentration of players, as the number of outlets is set to decline in 2022, and the largest players continue to invest in the country and strengthen their outlet networks.
Variety stores will continue to see its growth restricted by the success and more attractive offerings from other channels in Portugal over the forecast period. In order to compete, players will need to invest more heavily in modernising their outlets and offering more modern, better designed products whilst maintaining their low prices, a strategy already adopted by leading brand Flying Tiger Copenhagen.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Variety Stores industry in Portugal with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Variety Stores industry in Portugal, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories. Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories, although they may also sell grocery items. Includes fixed-price stores (e.g. dollar stores) and catalogue showrooms. Example brands include Dollar General, Woolworth (Germany), and Miniso.See All of Our Definitions
This report originates from Passport, our Variety Stores research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!