Journal of Retailing and Consumer Services 8 (2001) 189 } 198 Hypermarkets versus traditional retail stores * consumers' and retailers' perspectives in Braga: a case study Minoo Farhangmehr*, Susana Marques, Joaquim Silva School of Management and Economics, University of Minho, Escola de Economia e Gesta J o, Campus de Gualtar, 4709 Braga Codex, Portugal Abstract Since its appearance in the mid-1980s, the hypermarket is a symbol of modernisation. It has dramatically changed not only the Portuguese traditional retailing structure but also the consumption behaviour. To understand the impact of hypermarkets, two questionnaires were used, one for consumers and the other for traditional retailers. The results show that, for consumers, the hypermarketisthepreferredtypeofretailstore,duetoconvenience(itismorepractical)andlowprices.Theperceptionoftraditional retailers is that the hypermarkets a!ected them negatively. The comparative analysis suggests that, although consumers do not have a negative opinion about traditional retail, they do not share the optimistic vision that traditional retailers have about them- selves.  2001 Elsevier Science Ltd. All rights reserved. Keywords: Hypermarkets; Traditional retail; Buying behaviour; Store image 1. Introduction During the last decade, Portugal has gone through profoundpolitical,economicalandsocialchanges,which have had a great impact on consumption. The joining to the European Economic Community (EEC) in 1986 cre- ated the necessary conditions for the installation in the country of large selling outlets. With a professional and innovative management, they quickly conquered a large market share, transforming the old-fashioned and tradi- tional businesses, inherited from the past. In spite of the impact caused by hypermarkets, which resulted in their marketleadershipafteronlysixyearsalongwithastrong crisis in the traditional retail sector, academics have almost totally neglected this issue. This research was developed to overcome this gap. In the "rst part of the article, a historical analysis of the Portuguese retailing structure is presented. Then litera- ture on store image is brie#y reviewed and results of empirical studies in Portugal are discussed. Finally, the empirical study will be considered. This study was con- ductedintheNorthofPortugal,morepreciselyinBraga, known for being commercially active, a region with the youngest population of Europe, and the third most * Corresponding author. Tel.: #351-253-604556; fax: #351-253- 284729. populated in the country. The main objectives of this study are:  to study historically how hypermarkets a!ected the di!erent types of stores in Portugal. We also look empirically at the impact of hypermarkets on tradi- tional stores, in a regional context;  to identify the consumer perceptions towards hyper- marketsandtraditionalretail,andwhattheirchoiceof retail outlets are;  to "nd out how retailers responded to the challenges brought by hypermarkets, and to compare their per- ceptions with the perceptions of consumers. This study contributes to the understanding that con- sumers and retailers in most cases have di!erent percep- tions in relation to store image and shopping habits, justifying the need for consumer marketing research which is important in helping retailers implement a real marketing orientation. 2. The hypermarkets in Portugal: main changes The history of hypermarkets in Portugal can be divided into three distinct stages: introduction, in the mid-1980s; growth, during the "rsthalfofthe1990s;and a decrease in the late 1990s. Each stage will be discussed shortly. 0969-6989/01/$-see front matter  2001 Elsevier Science Ltd. All rights reserved. PII:S0969-6989(00)00020-5