A study by Nielsen has revealed that quarterly private label sales in Portugal have grown for the first time since 2012.
The data, for the first quarter of 2017, found that private label sales now account for 34.5% of total sales, compared to 33.3% in 2016.
Previously, private label sales had been constantly dropping since 2012, when they accounted for 37% of total supermarket sales.
Speaking to daily Diário de Notícias, the director general of Centromarca, Pedro Pimentel, justified this growth as an attempt of local retailers to anticipate the entry of the Spanish chain Mercadona that plans to enter the Portuguese market within two years.
The data found that FMCG sales were up 1.6% to €1.8 billion, with overall consumption up for all product lines, except grocery and dairy products (which remains stable). Beverages were the highlight, with a 4.7% increase, followed by household hygiene (+4.3%) and personal hygiene (+3.1%).
Private Label Categories
Personal hygiene products were the segment that grew the most among private label products (+8.1%). According to Pimentel, this represents a clear sign that retailers are trying to enter a specialist area, with offers of new articles. An example of this is Lidl, whose cosmetic brand Cien has been distinguished by Portuguese consumers association as a quality brand.
He also points out that, in the crisis period, supermarkets rely on promotions, especially on manufacturers' brands. In addition, retailers are trying to improve the consumer buying experience by investing in the modernisation of stores and offering better and more attractive products.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
