Italy is experiencing a change in food-retail sales, with the value of the average supermarket basket growing at a faster rate than volume, reports Italian daily Corriere della Sera.
What is even more reassuring for retailers is the increase in value of the average basket after years of decline, as consumers are looking for quality products at low prices.
However, recovery is not the same in all regions. It started in the wealthier north-west, moving to central and north-east Italy, and is now gradually spreading in the south and islands.
Supermarkets with sales areas between 1,500 and 4,500 square metres, as well as discounters and chains with low-priced 'no-name' products, have both seen growth of over 4 per cent. Specialised stores dedicated to organic products, personal care, and home and animal products are also reporting positive results. On the downside, hypermarkets and self-service shops are seeing a drop in sales.
Italy has about 226 square metres of retail space per 1,000 inhabitants, compared to a European average of 191 square metres, according to Nielsen data.
Due to a saturated market, retailers have started to close stores while not opening new ones, opting to invest in format renewals and improving the quality of products.
An ANCC-Coop study shows that in 2014 there was a drop in both the number of outlets and areas of hypermarkets (-0.8 per cent), supermarkets (-1.3 per cent) and self-service stores (-4.1 per cent), while discount stores (+2.8 per cent) and superstores (+1.7 per cent) increased in both space and number. As a result, superstores now account for 16 per cent of retail space and discounters for 15 per cent.
Due to fragmentation, the Italian market is more open and competitive, with the three largest operators accounting for 34 per cent of market share, compared to 61 per cent in the UK and Germany, 54 per cent in Spain and 53 per cent in France.
The share of private-label brands in Italy remains at around 20 per cent (compared to over 50 per cent in Europe), while the Italian e-commerce market accounts for 4 per cent of total retail sales, or €460 million, with an estimated four million Italians purchasing food products online.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
