CEO Says 2026 Price Increases Are Unavoidable With Ongoing Inflation
LuĂs Moutinho, chief executive of Sonae MC, confirmed on Wednesday that food prices in Continente Portugal will rise in 2026. He said inflation pressure remains strong across products such as meat, fish, fruit, vegetables, cocoa and coffee.
If there is inflation, prices have to go up. There is no other remedy.
Mr. Moutinho said, noting that inflation next year should stay well below the levels seen in 2022 and 2023. He described food retail as a low-margin business and said competition does not come at the expense of producers or suppliers.
Inflation Numbers in Portugal and Madeira
Year | Portugal Inflation | Madeira Inflation |
2019 | 0.3% | -0.2% |
2020 | 0.0% | -1.4% |
2021 | 1.2% | 1.1% |
2022 | 7.8% | 7% |
2023 | 4.3% | 5% |
2024 | 2.4% | 3.3% |
2025 | 2.2% | 3.3% |
Continente Plans 100 New Stores and 3,000 Jobs in Portugal
Mr. Moutinho also announced an expansion plan with 100 new Continente stores and 3,000 new jobs, while ruling out any move abroad. The company remains focused on Portugal, a market he described as mature and highly competitive.
International players such as Lidl and Mercadona have increased pressure, but he said Continente’s priority remains offering the best prices possible.
Private Label Sales Reach 35% as Discounters Gain Ground
To respond to competition, Continente has expanded its private label range. These products now account for about 35% of sales by value, according to company data. The figure is still below the national retail average of 48%, though private label products already represent more than half of sales by volume. “Besides price, we need quality private label products,” Mr. Moutinho said.
Portugal Shows Narrow 8% Price Gap Between Cheapest and Costliest Stores
An internal price comparison by Sonae MC shows an average gap of 8% between the lowest and highest prices in Portugal. The difference is wider in France, at 14%, and in the United Kingdom, at 27%.
Mr. Moutinho said this shows intense competition. Continente holds a 27% market share, sources 83% of its products nationally, and bought €620 million last year from members of its Producers’ Club.
Source: Sapo.pt
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