CEE Retailers To Experience 6.5% Growth Annually Until 2022, IGD Says
Central and Eastern European (CEE) retailers are expected to post 6.5% growth annually between now and 2022, compared to 3.8% annual growth in the entire European grocery market, a new study by IGD has found.
Extensive store-opening programmes in markets such as Russia and Romania, where market consolidation is still relatively low, are likely to bolster that growth, according to Milos Ryba, IGD’s head of discount and CEE.
At the same time, grocery retail in Western Europe is likely to experience moderate growth of 2.4% annually until 2022, IGD said.
“We expect stronger growth in CEE because many local retailers, including X5 Retail Group, Lenta and the discount operators, are planning extensive store-opening programmes,” said Ryba. “This will really accelerate growth across CEE and help fuel the entire grocery market in Europe.”
Major Retail Channels
In terms of the major trends affecting the main retail channels across Europe, Ryba noted that although large stores will remain the Continent’s chief grocery format, discounters are likely to post the strongest growth between now and 2022, “underpinned by new-store openings and remodelling existing stores. The discounter chains are continuing to focus on becoming a ‘main shop’ destination for more shoppers and are increasing their presence in city centres, residential areas, and on main shopping streets to help achieve this.
“Many discounters are expanding their ranges to ensure they stay relevant for today’s shoppers. By tapping into shoppers’ desire for food-to-go products, easy meals for tonight and premium ranges, discounters will continue to attract new shoppers and help cement their position in the market.”
Ryba also expects the convenience channel to perform well, with multichannel retailers focusing investment on their convenience formats and “taking an adaptable approach, so ranges and promotions can be flexed by location to meet a variety of shopper needs”.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.