Around 64% of households in Portugal prefer to shop from more than four different supermarkets, making the retail market 'highly competitive', a new study has revealed.
The trend to shop in multiple supermarkets has been prevalent in the country since at least 2017, according to Nielsen’s Panorama of Portuguese Retail report.
Last year, 11% of Portuguese shoppers chose two stores to fill up their shopping trolleys, while the percentage of those preferring only one store banner was even lower.
Among those polled, only 22% of the respondents stated that they preferred a mix of three stores, while 35% opted for four and 29% said they would shop in five stores.
Open To Experimentation
The study also found that 89% of Portuguese consumers like to try new brands and products, and are more open to experimentation and innovation than in the past.
A significant percentage of consumers (68%) said that they were willing to pay more for higher quality products, with more than half interested in trying out locally-branded or socially responsible products.
Consumers also said that they kept an eye on new products, which are available at lower prices.
Contributing Factors
According to Nielsen, new store launches, a greater penetration rate, the entry of new players, and promotions offered by retailers have contributed to increased competition in the retail market.
The study also attributes the growth of proximity channels as an additional factor promoting competition in the sector.
The study points out that "shoppers should be the main stakeholder in market strategies" and "their preferences must be at the heart of manufacturers' and retailers' strategies".
'Push' strategies used by retailers are not the most effective in addressing the issue of loyalty, the report added.
© 2020 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.
