Distribution Networks in Portugal

Overview by Globlatrade.net:

Types of Outlet

Hypermarkets, supermarkets
Situated in towns.They sell foodstuffs and non food products.
Continente, Feira Nova, Auchan, Bonjour, Intermarché
Department stores
Located in the town center on several floors. They have various specialized departments.
El Corte inglés
Hard discount
Mainly trade in food. They sell products of the distributor's own brand or no brand at all. People prefer them for their discount prices.
Lidl, Dia, Aldi.
Cash and Carry
Hypermarkets reserved for professionals.
Makro, Recheio
Factory shops or "brand centers"
Factory shops or "brand centers" on the outskirts of towns which sell designer seconds from previous collections. Large precincts with many shops, one for each brand selling former collections in leisure surroundings, with cinema complexes, lots of restaurants and often gardens.
Alcochete, Campera
Traditional shops
Found in villages and towns, in each district, and mainly sell clothes, food, bookshops, decoration, etc.
Shopping malls
Enormous shopping malls, found in towns, are open all week, from Monday to Sunday: 9 am to 11 pm. They are real life resorts: spas, gyms, crèches, restaurants, cinemas, churches, children's play grounds, general or specialized hypermarkets (like FNAC or Toys'r'us), cafés and shops. In these large spaces, the shops are usually franchises, and, being surrounded by huge parking lots, where families can walk around, they are in serious competition with traditional shops.
Colombo, Vasco da Gama.

Evolution of the Retail Sector

Growth and Regulation
Modern forms of distribution appeared very late in Portugal compared with other European countries. The modern distribution market appeared in 1961 with the opening of the first supermarket in Lisbon. Until 1985, there were practically no hypermarkets or supermarkets and distribution was represented by a host of small retailers and traditional shops. It is only since 1981 that the market has grown, eliminating smaller local stores on the way.
Market Shares
In 2004, hypermarkets represented 37% of distribution turnover, supermarkets 28%, local supermarkets 18.3% and local food shops barely 1.4%.
4 large groups share the market:
- the Modelo-Continente group which belongs to the Portuguese Sonae and which specialises in hypermarkets; it has become the leader of food distribution in Portugal.
- the Jeronimo Martins group: with a turnover of 3.4 billion euros in 2004, it is the second largest distributor in Portugal with the names Pingo Doce and Feira Nova.
- the French group Auchan, present in Portugal from 1970 onwards, had a turnover of 1.04 billion euros in 2003.
- the French group Carrefour, with a turnover of 470 million euros in 2004 and which has 1 hypermarket and 270 supermarkets.
The other major trend over the last few years has been the development of specialized hypermarkets: FNAC, Bricodis, Habitat, Ikea have opened.
These developments show that for the years to come there will be a constant decrease in traditional commerce and a growth in the modern forms of distribution especially hypermarkets and supermarkets which will extend their products and services more and more in the non-food sector.
Organizations in the Retail Sector
Portuguese Association of Distribution Companies (APED)

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