Portuguese grocery retailer Sonae MC plans to open 70 new Continente Modelo proximity stores by 2020, as part of an investment estimated at €200 million.
Speaking to daily Dinheiro Vivo, Continente’s director of operations, Amaro Amaral, said that the ambitious expansion plan will allow the creation of around 3,000 new jobs in the sector in Portugal.
Last week, the company inaugurated its 100th Continente Bom Dia store, located in Lisbon, investing €3 million. With more than 1,000 square metres of retail space, the new store has a cafeteria and offers a wide range of essential products.
Since 2012, Sonae MC has opened 74 Continente Bom Dia stores, which are located in urban regions, more specifically in residential areas, and operate for longer hours to facilitate shopping. The banner also endeavours to create a traditional market atmosphere.
Greater Purchasing Power
Sonae MC now wants to reach the "big cities" and the "most important neighbourhoods", according to the daily, as well as the cities and towns of the interior where there are no Continente stores. By the end of the month, a new Continente Bom Dia store will open in Olhão.
Amaral added, “the customers have received us very well and the shareholder is motivated to invest heavily in the format." Regarding priority areas, he identified "areas with greater purchasing power", such as Greater Porto and Greater Lisbon, Setúbal or the Algarve.
Bom Dia Format
Continente's market share grew by 0.4% in 2017 to 25.9%. In the last two years, Sonae opened 44 new Bom Dia stores, 19 of them in 2017, with an associated investment of €89 million.
"We know that today's consumers increasingly value the convenience and ability to make their purchases quickly and conveniently by making smaller purchases, but more often. That is why, in recent years, we have bet heavily on the Bom Dia format, which responds exactly to this consumer profile," Amaral said.
Last year, Continente Bom Dia accounted for 13 to 15% of a total turnover of €3.88 billion.
© 2018 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
