Spanish supermarket chain Mercadona has expanded its presence in neighbouring Portugal by opening ten new stores in 2023, reaching a total of 49 by year end.
Despite being a newcomer, Mercadona has surpassed established players like E.Leclerc, Covirán and SPAR, to hold a market share of 3.1%, according to reports.
The latest figures from Retail Data, reported by Spanish daily ABC, show that Sonae MC (Continente) is the leader, with a 24.9% market share and 699 stores.
Second-placed Jerónimo Martins (Pingo Doce) has a 20.5% share, but has the largest number of stores in the country (1,071). German discounter Lidl ranked third, with 11.5% of the market and 277 stores.
While Sonae (Continente) and Jerónimo Martins (Pingo Doce) still account for over half of the market, Mercadona has taken a significant bite out of their share in just five years.
Other top retailers include Intermarché Portugal (10.7% share and 264 stores), Dia Portugal (6.3% and 487 stores), Auchan Retail Portugal (5.5% and 99 stores), Aldi Portugal (5.1% and 137 stores), Mercadona (3.1% and 49 stores), Unimark PT (2.3% and 654 stores), E.Leclerc Portugal (2.0% and 21 stores), Covirán Portugal (1.7% and 231 stores) and SPAR Portugal (0.9% and 123 stores).
Expansion Plans
Mercadona’s expansion is further fuelled by Dia’s recent departure from Portugal due to intensifying competition, according to the report.
With the ten new stores and the ongoing construction of its second and largest logistics block in Almeirim, the company will have invested an additional €280 million by year end.
The retailer opened its latest store in the country in Alverca (Vila Franca de Xira).
However, Mercadona’s CEO has warned that political instability in Spain could potentially hinder future investments, highlighting the importance of a stable business environment.
Mercadona opened its first store in Portugal in 2019.
