Portugal: promotions, Mercadona

Date : 01 July 2016

As Sonae spotlights its promotional strategy and more information emerges on Mercadona’s expansion into the country, we round up news from Portugal.

Sonae to focus on promotions to drive growth

In an interview with Reuters, Sonae’s chief operating officer, Luis Reis, has said that the retailer will focus its driving growth through promotions after the strategy helped it increase its market share recently. Reis said that while the investment had led to a decrease in the retailer’s profit margin, this had been accepted at a strategic level.

Mercadona identifies 25 suppliers for Portugal expansion

Following on from its announcement that it would be entering the country in 2019, Mercadona has named 25 suppliers that will support its expansion. The retailer will use local suppliers for its fish, sugar and bread ranges, while it will work with Spanish oil provider Sovena to supply that product. Further to its initial announcement, Mercadona is said to be investigating building a warehouse in the country as well, to support the efficient supply of its stores.

Coviran sees positive results in 2015

Spain-based cooperative Coviran ended 2015 with 188 stores in Portugal, out of its 2,549 total store base. The retailer said it generated gross sales of €101m in 2015, out of its total of €1.2 bn. Coviran and its store owners invested more than €21m in the country in 2015, with the retailer noting that during the year it bought 80% of its range from local producers.

SPAR Portugal hits 100 store market

SPAR Portugal has opened its 100th store, continuing its expansion in the country. The retailer said that its growth in Portugal was being aided by working with independent retailers who were keen to rebrand their stores under the SPAR brand. Meanwhile, to support the pace of growth, SPAR Portugal has acquired a 6,000 sq. m warehouse in Alverca do Ribatejo, Lisbon, which it is aiming to help it drive greater efficiencies by centralising more of its distribution and enable it to expand the number of SKUs its stores could carry.