A report by Roland Berger consultants says retail sector employment has risen at an average annual rate of some 0.7% between 1996 and 2004. Based on NIS-National Institute of Statistics figures, the sector employed 371,000 people in 1996 rising to 392,000, 8 years later. The period covered by the report includes two important amendments to the law. At the time critics had warned changes introduced would have significant impacts on retail sector jobs. In 1996 the law was amended to end super and hypermarket trading on Sunday afternoons and public holidays. Subsequently new regulations governing licenses for hypermarket outlets were introduced. The report says there was a sharp fall in employment in the sector immediately after the 1996 law came into force and by 1999 the number of jobs was down 45,000 against 1996. But from 2000 the sector recovered and is now a net consumer of labour. The recovery is mainly because major distribution groups have switched the focus and are opening outlets under 2000 m2 area which allow them to trade Sunday afternoons and public holidays. In terms of corner shops and small independent retailers the report says small food, drink and cigarette retailers have been losing market share but employment has risen by almost 5% among retailers who have specialized and upgraded operations offering quality niche services.

Market research commissioned in Germany and the UK shows that the Alentejo region (south and east of Lisbon) could attract 330,000 second home tourists in developments focused on golf and tradition while encouraging a new tourism paradigm. Investments in tourism projects in the Alentejo will grow, currently 11 are classified as having potential national interest (Potencial Interesse Nacional (PIN) and approved by the Portuguese business agency AICEP. Some 26 major developments are in planning or provisional stages targeted on residential tourism markets in northern Europe. The 26 projects are worth €6.238 billion and will see 65-75,000 new beds and 25-55,000 new jobs in the area. Investors include Sonae Turismo and Espírito Santo groups and the Swiss developer Volkart. Amorim group, in a joint venture with Aman Resorts, is planning an €800 million development at Portel while 6 projects around Evora worth some €800 million are designed around the anchor activity of golf. Irene Paredes of AICEP says 48% of current projects classified as of national interest, some €7.5 billion, are planned for the Alentejo and will create 16,000 jobs. The 350,000 secondary residences being developed would be worth some 2.8% of Portuguese GDP. Developers say the Alentejo a vast, open and under populated space is well able to absorb the planned level of investment.

Caves Aliança, majority owned by Bacalhôa Vinhos (Joe Berardo, Madeira) has acquired a stake in Viborel Distribuição following a decision to sell its stake in PrimeDrinks, the leading wine and spirits distributor in Portugal. Herdade do Esporão, (José Roquette) has strengthened its PrimeDrinks stake to 50% while William Grant has reduced its stake to 35%. Aveleda (Guedes family) has taken a 15% stake in PrimeDrinks which distributes its Aveleda brand of wine. Berardo’s entry into Viborel strengthens its position as a distributor in various market sectors both premium brands like Aliança Velha (matured brandy) Aliança Bruto, red sparkling wine, as well as table wines from the main regions of the country. According to Aliança the operation aims to restructure and consolidate Aliança, Bacalhôa and Fundação Eugénio de Almeida portfolios to improve market penetration both domestically and abroad. Viborel expects turnover of €45 million by end 2008.