Developments in Portuguese Markets: Pingo Doce and Lidl Wind

The competition at the checkout counters of the markets we visit while doing kitchen shopping in Portugal is intensifying day by day. When we look at Numurator's Worldpanel data, we see very clearly how the balances in the field have changed. The giants of the industry still control half of the market, but the moves of those coming from behind are slowly changing the rules of the game.

Those at the Top and the Scissors Between

Continente, the giant of the Sonae group, still maintains its place at the top of the table with a market share of 27.6%. However, Pingo Doce, operating under the umbrella of Jerónimo Martins, managed to narrow the gap with the leader by 1.2 points, reaching a share of 22.3%. In total, these two giant powers shoulder exactly half of the Portuguese food retail market. In other words, there is a system in which the grocery market is shared half and half.

Lidl Renewed Confidence, Mercadona Put the Brake on

Let's come to the third and fourth rows of the market; Because the real action happens here:

Lidl not only maintained its 13.8% market share, but also solidified its third place position.

Mercadona, on the other hand, experienced a decrease of 0.1 points, falling to 7.4%. We see that the Spanish giant has encountered such resistance and slowdown in market share increase for the first time in its Portuguese adventure.

What Does Customer Loyalty Say?

There are actually very interesting dynamics in the heart of the matter, that is, in consumer habits. Loyalty lies behind Pingo Doce closing the gap; People visit this market more often and leave their baskets fuller. Lidl is similarly growing on the loyalty of its existing customers, not because it is experiencing incredible penetration among households.

On the Mercadona side, the picture is a little different. They are still very good at attracting new customers; In the first half of the year, 55.6% of Portuguese households walked through their doors (last year the rate was 53.1%). But the problem is that customers are slightly behind in shopping frequency and basket size. As Marta Santos of Numurator Portugal points out, Mercadona's limited product range puts it at a slight disadvantage in the local market here. We Portuguese love to visit different markets, chase promotions and see the brands we know on the shelves; We don't want to be stuck in one place.

Source: ECO / Numerator Worldpanel data (reviewed by Marta Santos)