Pingo Doce, part of the Jerónimo Martins group, is expanding its foodservice offering as it seeks to achieve a point of difference in the increasingly competitive Portuguese retail market.
The company plans to add 50 in-store restaurants this year, bringing the total number of foodservice outlets in its stores to 240, as the retailer aims to become one of the leading restaurant chains in Portugal by the end of 2024.
Differentiation Strategy
Speaking at a press conference, the CEO of Pingo Doce, Isabel Ferreira Pinto, acknowledged increased competition from international players such as Mercadona, Auchan, Lidl, and Aldi, but remains confident in the retailer's price focus and differentiation strategy.
“What is happening in the Portuguese market is not new. We are used to operating in a competitive market and we take this with a certain amount of normalcy. It is part of our daily lives,” she stated.
Full-Year Sales
Pingo Doce recorded a 7.9% increase in annual sales to €4.9 billion in 2023, with like-for-like sales up by 7.7%. Tourism was the driver of growth in the cash & carry segment, with Recheio increasing sales by 15.1% to €1.3 billion, with like-for-like sales up 14%.
Pingo Doce anticipates continued pressure on Portuguese consumers due to high-interest rates. The retailer plans to address this by maintaining their focus on promotions and implementing a new store concept that emphasises meal solutions and fresh food.
Pingo Doce ended 2023 with 482 stores, having renovated 60 stores, opened 11 stores, and closed one.
The company will remodel 60 to 80 existing stores as well as opening new locations, aiming for a net increase of 10 to 20 stores in 2024.
