Retail in 2024: The big picture
Retail in Portugal showed small positive growth in 2024, despite the overall challenging economic environment, with this positive performance driven mainly by the results of the online channel and grocery retailers. Although interest rates have come down and stabilised since the high of 2022, the repercussions of this continue to affect the prices of goods and utilities, leading to reduced consumer spending power and more strategic purchasing habits.
Technological trends
Industry players and consumers are increasingly embracing digital solutions, boosted by consumption habits that have changed significantly in recent years, especially during and after the pandemic, when the online channel received a significant boost due to necessity. Digital channels continue to be an important growth driver for brands, with omnichannel strategies increasingly being incorporated into the business plans of various players, fostering synergies between different channels and also enabling greater convenience for consumers.
Changing consumer behavior and sustainability
Consumer habits have been changing rapidly, challenging different players to adapt and innovate in order to remain competitive. Whilst different generations naturally generate different behaviours, one thing unites them: consumers are increasingly demanding and continuously assess the cost-benefit relationship, with loyalty to brands diminishing, as people explore new opportunities and channels, and with social media having an increasing impact on consumer choice.
What next for retail?
As the macroeconomic landscape gradually improves and consumers regain purchasing power, expenditure levels are expected to rise, with retailing anticipated to increase over the forecast period. That said, challenges will remain for physical outlets, with some players leaving the brick-and-mortar sphere and investing more in their digital channels.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail 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.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail 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.
The Retail in Portugal report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Portugal?
- Which are the leading retailers in Retail in Portugal?
- How are products distributed in Retail in Portugal?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Portugal?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in Portugal
Retail in 2024: The big picture
Technological trends
Changing consumer behavior and sustainability
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Black Friday
Christmas
Back to School
Easter
DISCLAIMER
Convenience Retailers in Portugal
KEY DATA FINDINGS
Convenience retailers benefit from an ongoing increase in outlets
Disa completes purchase of Q8 network in Portugal
Convenience retailers will maintain positive growth
Auchan will maintain and expand its presence in Portugal over the forecast period
Forecourt retailers set to rise amidst growing competition
Supermarkets in Portugal
KEY DATA FINDINGS
Supermarkets benefit from convenience and private label ranges
Mercadona takes over third place from Intermarché Super, thanks to a boost in share
Mercadona’s expansion plans stimulate competition
Supermarkets will maintain a positive performance over the coming years
Competition will remain strong, stimulated by the activities of Mercadona
Adoption of modern technologies and innovation will shape the future
Hypermarkets in Portugal
KEY DATA FINDINGS
Hypermarkets face challenges from changing consumer shopping behaviours
Continente maintains its lead and now offers Late Night delivery services via Uber Eats
Omnichannel strategies can boost sales for hypermarkets
Flat growth expected for new outlets, while value to set to fare better
Continente set to remain the largest player, with competition heating up among smaller names
Hypermarkets will continue to lose share to smaller-scale grocery channels
Discounters in Portugal
KEY DATA FINDINGS
Discounters continue to benefit from consumers’ ongoing price-sensitivity
Lidl maintains its lead as the most relevant discounter in Portugal
Minipreço now under the Auchan umbrella
Discounters set to see ongoing value growth with more sluggish outlet growth
Aldi set to develop a strong expansion strategy
Strong competition from other retailers pushes discounters to adapt
Small Local Grocers in Portugal
KEY DATA FINDINGS
Small local grocers face a slump in value sales due to competition from other, more agile, channels
Highly-fragmented category with a large number of small players
Go Natural set to close its doors in Portugal
Small local grocers set to remain in a slump over the forecast period
Availability of fresh produce and personalisation remain as potential competitive advantages
E-commerce could be a lifeline for struggling small local grocers
General Merchandise Stores in Portugal
KEY DATA FINDINGS
General merchandise stores see a flat performance due to challenges affecting both department and variety stores
Variety stores remains a highly-fragmented and competitive channel
Department stores suffer from lower spending on fashion products
Department stores set to recover over the coming years, thanks to stronger consumer spending and inbound tourism
Variety stores gaining steam supported by increasing competition
Further new players set to emerge in variety stores
Apparel and Footwear Specialists in Portugal
KEY DATA FINDINGS
Apparel and footwear specialists face steep declines due to consumers’ evolving shopping behaviours
Inditex strategically re-balances its omnichannel offer
A fiercely competitive environment challenges players to evolve
A return to small positive sales expected, as retailers enhance their in-store experiences
Technology will continue to shape the modern shopping experience
Sustainability will become increasingly important
Appliances and Electronics Specialists in Portugal
KEY DATA FINDINGS
Appliances and electronics specialists manage only marginal value sales
Worten maintains its leading position
Independent and smaller players struggle
A more positive outlook anticipated for electronics and appliances specialists over the forecast period
A dynamic competitive environment will continue
Personalised customer experience, added valued services, and in-store enhancements will boost sales
Home Products Specialists in Portugal
KEY DATA FINDINGS
Home products specialists maintain relatively stable value sales
Pet shops and superstores show the strongest value growth
DIY trends boost results for home improvement and gardening stores
Pet shops and superstores will maintain a robust performance
DIY trends will continue to support sales for home improvements and gardening stores
Fierce competition will continue over the coming years
Health and Beauty Specialists in Portugal
KEY DATA FINDINGS
Health and beauty specialists remain fairly resilient
Ongoing focus on health and wellbeing supports a positive performance
A highly dynamic competitive environment drives innovation
Beauty specialists face only small value growth over the coming years
Health and personal care stores will be supported by an ongoing focus on health and wellbeing
Health and beauty specialists set to become increasingly diverse and innovative in their offers
Vending in Portugal
KEY DATA FINDINGS
New tobacco legislations negatively impact the performance of vending
Foods and drinks vending maintain a more positive performance
Vending machines develop modern features
Vending overall set to return to flat value growth, led by a positive performance in foods vending and soft drinks vending
An uncertain future ahead for tobacco vending
Technology will drive future innovation
Direct Selling in Portugal
KEY DATA FINDINGS
Direct selling continues to lose steam
Vorwerk maintains its overall lead thanks to myriad strengths
Strong competition from other channels hampers potential sales overall and forces players to adapt
Direct selling set to remain on a declining trend over the coming years
Growing integration of digital channels will shape the business model over the coming years
Tupperware sees an uncertain future ahead after facing bankruptcy and consequent sale
Retail E-Commerce in Portugal
KEY DATA FINDINGS
Retail e-commerce maintains its positive performance
Retail e-commerce is a fiercely competitive category
Delivery companies and emergent technologies play crucial roles in the success of e-commerce
Retail e-commerce will maintain its positive performance
Competition is expected to remain robust, although international budget players look set to face challenges
Innovation, increasing convenience, and consumer-centric offers shape the future
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Retail research and analysis database.
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