Spanish supermarket chain Mercadona has finally crossed into Portugal's south, opening its first Algarve store on October 15 at Nova Vila Retail Park in Portimão. It's a big deal locally: Algarve residents have previously driven across the border to Ayamonte, Spain just to shop there.
The new store represents an investment of over €6.5 million and a sales floor of 1,900sqm, stocking the usual Mercadona range — fresh produce, meat, fish, deli goods, bakery items, cosmetics, household basics and pet supplies. A hundred people work there, all on permanent contracts from the start.
Two details worth knowing for visitors. First, there's a popular ready-to-eat section with freshly prepared meals, plus a small dining area if you'd rather eat there than cook at your rental. Second, parking is easy: 839 shared spaces with the retail park, including two EV chargers and spots for bikes and scooters.
The company has also signed an agreement with the Algarve Food Bank to donate edible-but-unsellable food daily, cutting waste while helping local families.
Faro is next on the list, with a second Algarve store opening on November 12 at Rua Tito Olívio, nº437. The Portimão opening brings Mercadona's Portuguese network to 77 supermarkets, and the chain plans 12 more openings across the country in 2026 — after adding seven this year in Lisbon, Viseu, Covilhã, Abrunheira (Sintra), Alhos Vedros, Beja and Vila Real.
Why should holidaymakers care? The Algarve is one of Europe's most popular self-catering destinations, and supermarket prices can make or break a budget villa stay. Mercadona's arrival adds a new, typically affordable option alongside the Portuguese chains most visitors already know. If you're renting near Portimão or Faro, it's now a convenient stop for groceries, picnic supplies and quick ready meals. For anyone who has shopped at Mercadona in Spain and wondered what the fuss is about, you can finally try it without leaving the country.
For a Portugal Resident report
