The Italian retail sector has seen a €7.7 billion drop in total sales in the period 2010-2016, according to a report by the Italian Confederation of Trade, Tourism, and Service Companies (Confesercenti) based on Istat data.
Traditional (small) retailers have been hit the hardest, with sales down by €6.9 billion over six years (-9.5%), while large retailers have performed slightly better, limiting the drop in turnover to €0.8 billion (-1.2%).
Sales of food and beverages were the only items of expenditure to see growth (+0.1%).
In the food retail segment, small retailers have seen revenues tumble by €2.4 billion in the reference period (-11.0%), contrary to large retailers who increased turnover by €2.3 billion (+2.7%).
On the other hand, in the non-food retail segment, both small retailers (sales down by €4.5 billion or -9.3%) and large retailers (sales down by €3.1 billion or -6.5%) have registered a large drop.
However, upon closer examination of the data, it is clear that only the discount channel increased sales, while the other food retailers mainly recorded a negative result, indicating a clear shift of consumers towards savings.
Commenting on the results, the general secretary of Confesercenti, Mauro Bussoni, said that, besides the crisis, retail sales in physical stores were also influenced by the increased popularity of e-commerce.
The future, he added, will be marked by increased competition between large retailers, traditional retailers and online commerce.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
