LONDON--(BUSINESS WIRE)--Competition in the grocery market is intensifying across Europe, according to a new report available on companiesandmarkets.com. Consequently, retailers are diversifying into new types of products. High awareness of Tesco's F&F clothing brand in central Europe has prompted the retailer to open a stand alone F&F store in Prague, Czech Republic with more to follow, including one in Warsaw, Poland.
Grocery Retailing in Europe: Market Size, Retailer Strategies and Competitor Performance
The grocery market in Europe has rebounded from a severe downturn with total grocery spend growing by 2.2% in 2010, driven by an improvement in consumer confidence along with rising food prices. However, as recovery remains weak and the market is becoming increasingly saturated, slow growth will prevail, prompting grocers to diversify into new products, channels and locations to gain market share.
Developing online operations is becoming an effective means for grocery retailers to boost sales with minimal expansion costs. Although online shopping remains underdeveloped in Germany, Rewe launched its Rewe Drive service in Frankfurt in March 2011 to attract commuters in the area and save costs on home delivery.
Grocery expenditure in eastern European countries, such as Bulgaria and Slovakia grew at above average rates in 2010 and is forecast to grow strongly between 2010 and 2013. Consumer spend rebounded quickly in the region and foreign players continue to invest in the area, leading to grocery retail market consolidation and a boost to grocery spend.
- Which grocery players command the largest shares of grocery expenditure and specialist sales in the EU27 region?
- Which European markets should I consider entering? Which markets performed the best in 2010 and which will grow the most until 2013?
- How can I improve my online operations to drive footfall and continue to grow market share? What are my competitors' activities in this channel?
- What products and services should I develop to improve my margins and sales densities? How can I diversify my non-food range to drive profitability?