Mercadona Slips in Portugal for the First Time as Continente Widens Its Lead

Mercadona cut the ribbon on its 73rd Portuguese store on 30 June, a new supermarket in Sintra that brings roughly 64 permanent jobs with it. The Spanish chain's march across Portugal looks, on the surface, relentless. Yet behind the opening lies an awkward turn: for the first time since it arrived in the country, Mercadona is losing ground.

A rare stumble for the Spanish giant

Through the early months of 2026, Mercadona's share of the Portuguese grocery market slipped — the first decline since its 2019 debut — even as rivals pushed forward. Pingo Doce, owned by Jerónimo Martins, and the German discounter Lidl both gained ground over the same stretch. It is a notable reversal for a chain that spent six years taking customers off everyone else.

The market leader, meanwhile, tightened its grip. Continente, the banner of Portuguese group Sonae, lifted its share from 26.6% to 27.5%, extending a lead it has held throughout Mercadona's rise. Mercadona, by comparison, sat near 7.2% after edging up from 7% across 2025 — a fraction of Continente's footprint despite years of aggressive expansion.

• Mercadona stores in Portugal: 73, after the Sintra opening on 30 June
• Continente market share: up from 26.6% to 27.5%
• Mercadona market share: ~7.2%, but slipping in early 2026
• Mercadona 2025 profit in Portugal: about €26 million
• Invested 2019–2025: roughly €1.23 billion
• Planned 2026 investment: a further €150 million

The expansion is not slowing down

If anything, Mercadona is doubling down. The group has earmarked another €150 million for Portugal this year, on top of the €1.23 billion poured in since 2019, and plans around a dozen new stores in 2026 — including its first foray into the Algarve, expected in late summer. That would push the network toward 82 outlets by year-end. The strategy is unchanged: dense store coverage, a tight own-label range under the Mercadona private brand, and prices pitched to undercut.

The early-2026 wobble suggests the easy gains may be over. Portugal's grocery market is among the most concentrated and competitive in Europe, and incumbents have learned to fight. Continente and Pingo Doce have leaned on loyalty cards, fuel discounts and their own low-price lines to defend turf, while Lidl keeps winning the discount shopper. With food still one of the heaviest items in the inflation basket, every chain is competing for households watching each euro.

What This Means for Expats

• More competition, keener prices: a four-way fight between Continente, Pingo Doce, Lidl and Mercadona keeps a lid on grocery bills — welcome relief amid the wider cost-of-living squeeze.
• Mercadona reaches the Algarve soon: the chain's first southern store is due in late summer, widening choice for residents and second-home owners in the region.
• Own-label is the battleground: all four chains compete hardest on private-label staples, where the price gap with branded goods is widest.

Mercadona's 73rd store proves the ambition is intact. But the share figures are a reminder that in Portuguese groceries, planting flags is the easy part — holding the ground is what counts.