Speciality Food Stores: Growing Retail Niches - Analyst View - 7 November 2018 | Author: Gildas Aïtamer
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Analyst View Speciality Food Stores: Growing Retail Niches 7 November 2018 | Author: Gildas Aïtamer
Analyst View
Executive Summary
Organic and Wholefood stores; Beer, Wines and Spirits chains; Frozen Food operators and other retail
Food Specialists are thriving. LZ Retailytics data shows that growth in Eastern Europe is mainly being
fuelled by Liquor Stores while Western Europe is experiencing an upsurge in the opening of Organic and
Wholefood stores.
Overall, Speciality food retailers tracked by LZ Retailytics can be shown as outperforming, both in
relative and absolute terms. We note that they will generate a combined EUR13.7bn in additional retail
sales between 2018 and 2023, compared with EUR25.7bn for minimarkets, or even EUR27.4bn for
hypermarkets.
These food specialists are small but not insignificant. The 15 largest operators in the channel account
for 1.9% of the European grocery market and will reach 2.4% in 2023. Very much like suppliers looking
for new distribution channels, full-range grocers are looking to tap into these expanding grocery
territories, either by introducing their own dedicated banners or by acquiring established players.
Start your
free trial
now
www.retailytics.com/
trial-access
7 November 2018 | Author: Gildas Aïtamer
Analyst View
Rarely mentioned due to their high degree of Europe: Retail Sales CAGR* of Selected Speciality Food Sub-
specialisation, Organic and Wholefood stores; Channels vs. Other Grocery Channels, 2018-2023
10
Beer, Wines and Spirits chains; Frozen Food So urce:
Retail Sales CAGR* (%)
operators and other Speciality Food operators 8
are thriving amidst the full-range grocery giants,
thanks to their unique concepts, deep 6
assortment and expertise.
4
A good example of this can be seen in France, 2
home of “everything under one roof”
hypermarkets, where food specialists are 0
nibbling away at market shares. Biocoop (organic Liquor Stores Organic and Pet Stores Minimarkets Supermarkets
Wholefood
food) and Grand Frais (fresh food) will see their Stores
combined market shares grow from 1.5% in 2018 The Speciality Food channel is expected to grow significantly over the upcoming
to 2.1% in 2023, a nationwide footprint similar to years, albeit from a smaller base.
that of discounter Aldi.
Alongside their alcohol-item focus, Liquor Stores
there often sell complementary grocery items,
Nibbling Market Shares effectively playing the role of convenience
stores. This is the case for Krasnoe & Beloe
Across Europe as a whole, Speciality Food
(Red & White) and Bristol in Russia, which are
retailers are present with a wide variety of
expected to more than double their retail sales
profiles. They might appear small overall but are
by 2023.
not insignificant. The 15 largest operators in the
channel alone are expected to pass the 2%
Growth potential and increased expertise are
European market share milestone in 2020.
also luring full-range retailers into the segment.
For example, Carrefour Poland acquired local
Due to a market’s retail history, or legislation,
liquor chain Galeria Alkoholi, which continues to
they can be top players within their product
run under its own banner.
categories. This is most notoriously the case of
alcohol monopolies in the Nordics:
In Western Europe, it is the booming organic
Systembolaget (SE), Alko (FI) and Vinmonopolet
food segment which whets the appetite of full-
(NO). Liquor store chains are also gaining
range retailers.
momentum in Eastern Europe.
Europe: Top15 Speciality Food Retailers by Turnover (EURmn, 2018) and Growth Rate (CAGR*, 2018-2022)
5,000 20
So urce
4,000 : 16
Retail Sales CAGR* (%)
3,000 12
Retail Sales (EURmn)
2,000 8
1,000 4
0 0
ko
2
d
rd
t
et
p
a
a
ra
e
e
e
s
pf
ge
lo
oo
00
ai
m
an
re
re
ek
ol
tu
na
ca
Al
Be
Fr
Ho
la
nn
nÀ
-2
Ed
el
op
oc
na
Pi
ss
bo
Ic
d
e&
on
De
Bo
Bi
on
At
Al
an
e
em
bi
no
Fr
nm
ts
Gr
Al
st
as
Pe
Vi
Sy
Kr
Liquor Stores Frozen Food Stores Pet Stores Organic and Wholefood Stores Others CAGR (%)
* Compound Annual Growth Rates (CAGR) at constant exchange rate vis-à-vis EUR.
7 November 2018 | Author: Gildas Aïtamer
Analyst View
French Retailer Casino was an early mover in
acquiring organic food chain Naturalia, turning it Europe: Speciality Food Retailers Developments
into one of the largest operators on the segment
Top 15: Retail Sales (EURbn) Organic & Wholefood Stores
in France.
Launch & Acquisition, 2017/2018:
Others are developing their own network, such as 2018 2023*
E.Leclerc which says it plans to open 200 organic
stores within the next three years. 28.76 42.45 Amazon (UK) - Whole Foods Market
Auchan (FR) - Auchan Bio
Speciality Food retailers tracked by LZ Retailytics Carrefour (FR) - So Bio
Top 15: Market Share
are performing strongly, both in relative and
E.Leclerc (FR) - Le Marché Bio
absolute terms. They are expected to generate a 2018 2023*
combined EUR13.7bn additional retail sales Sonae (PT) - Brio, Go Natural
between 2018 and 2023. 1.88% 2.36%
This compares to an additional EUR25.7bn and *Constant exchange rate So urce:
EUR27.4bn for minimarkets and hypermarkets
respectively.
Operating in a niche eventually caps growth, not to
Niche Constraints mention pressure from intensifying competition in
popular segments such as organic food.
Even so, their strengths can over time become
Having matured over recent decades, frozen food
weaknesses. A successful commercial proposition
retailers are a good illustration of this need to diversify
needs to be both strong enough for consumers
to sustain growth. Iceland in the UK is opening larger,
to justify a dedicated shopping trip and hard to
supermarket-like, out-of-town stores. I
replicate for competitors.
In France, Picard is introducing non-frozen categories
The unique organisation structure of Grand Frais, and lunch-offers into its assortment. Both are also
an economic interest group that brings together looking to international markets for growth, with
multiple wholesalers, makes it particularly hard arguably lacklustre performances so far. That
for retailers to emulate. highlights the difficulty of translating highly
specialised concepts to new markets and shopper
demographics.
Europe: Speciality Food Banners Sales per Sq m (EUR), 2018
Find the outperformers most relevant to your
25,000
business. LZ Retailytics tracks and analyses the
Retail Sales (EURmn)
So urce:
20,000 developments of over 200 retailers in the 40
15,000 countries of Europe, representing 1,200+ retail
10,000 banners. Stay one step ahead and create your next
business opportunities with LZ Retailytics in your
5,000
pocket.
0
ko
et
et
ll
p
ra
s
..
.
...
l..
Ga
oo
ai
o.
ol
an
tu
Al
bo
&
Fr
Fo
op
oc
na
Pl
ll &
e
em
d
no
Bi
on
o-
le
Al
an
Ga
ho
st
Bi
as
nm
Gr
Sy
W
Kr
Vi
Liquor Stores Organic and Wholefood Stores Others
Liquor Stores and Organic & Wholefood Stores rank among the most productive
banners making them particularly attractive for full-range retailers.
7 November 2018 | Author: Gildas AïtamerAdvisory &
LZ Retailytics brings innovative, interactive
workshops direct to your company
Contact Us ›
Deepen the insight Denise Klug
Senior Retail Analyst
across your teams +49 69 7595 2542
denise.klug@retailytics.com
Train your teams based on high-quality data and insights from
LZ Retailytics' analysts. Benefit from our special expertise on:
Hypermarket Channel Trends
Market Developments: France, Spain
Retailer Updates: Carrefour, Auchan
For more than six years, Gildas has been consulting with clients from
the financial and FMCG industries who wish to keep abreast of
developments in the European grocery retail sector.
Gildas provides customers with actionable data and insights to support
their internal projects, be it gaining insights on key customer accounts -
including Carrefour and Auchan - or assessing market opportunities in
France and Spain.
Relying on a deep knowledge, giving an independent perspective on on-
going trends and providing informed forecasts; Gildas is an appreciated
commentator of the retail industry at conferences and has been
regularly featured in the press.
Together with his fellow international retail analysts, Gildas delivers a
Gildas Aïtamer dedicated LZ Retailytics workshop on hypermarkets, which provides
Senior Retail Analyst quantitative and qualitative data on the developments in a channel
which is in dire need of readjustment.
gildas.aitamer@retailytics.comYou can also read
