Retailing in Italy
Euromonitor International's Retailing in Italy report offers insight into key trends and developments affecting the industry. The report examines all retail channels to provide sector insight. Channels include department stores, food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers, durable goods retailers, and leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of alternative selling channels (kiosks, homeshopping, internet retailing, service stations, vending and direct selling, as available).
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Chapters: 12 | Tables: 87 | Publication date: Jul 2006
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Italian retailing on its way to modernisation
Italian retailing was still very fragmented and dominated by a high number of small to medium-sized operators in 2005. Nevertheless, it started making its way to becoming a more modern retailing structure as in other Western European countries. A number of large retailers are present, including multinationals. These foreign retailers’ main strategy was based on mergers and acquisition agreements with local players, in order to assimilate know-how and avoid fairly strict Italian regulations.
Discounters break through
The performance of discounters improved after a slow start, as they changed their marketing strategies to suit Italian consumer preferences. In fact, hard discounting could not work in a country like Italy which has such a deep and diverse food culture. These operators upgraded their image, distributing not only private label products, but also branded products. Moreover, they improved their own private label products to gain consumer trust. Italian consumers appreciated these ‘new image’ soft discounters, which also made efforts to improve the shopping environment within their stores to make them look friendlier.
Private label products the key to success in grocery retailing
Private label products in grocery retailing improved in quality, some becoming even premium-positioned products. Each operator developed various private label lines targeting different consumers; moreover, each line saw a widening of product offering as new products were regularly launched. The most common private label products were either organic or typical regional products. These improvements, along with the low disposable income of Italian consumers, led to an increase in sales for chained grocery stores.
Convenience stores boom
Convenience stores performed very well, as outlets offered many of the advantages enjoyed by other bigger sized retailers, but were located in high streets and offered a high level of convenience. In fact, chained convenience stores distributed private label products as well as branded ones, and they usually had a counter supplying typical fresh produce. Even though Italian law does not permit these stores longer opening hours, their convenient locations enable them to increase their sales, as they meet the needs of busier consumer lifestyles.
Internet retailing highly dynamic
Internet retailing was the most dynamic non-store retailing channel, and it is expected to keep growing at a rapid pace in the future. More than half of the Italian population have a PC at home, although the percentage with internet access is slightly lower, and only a small percentage of these would shop on-line. Therefore, the penetration of this channel was still very low but growing fast, and its future potential is thus huge.
Non-grocery retailing continues to grow
Non-grocery retailing continued to grow, mainly thanks to the importance of hi-tech items such as mobile phones, but also PCs, iPods and other appliances which have become necessity goods. Some non-grocery areas, such as clothing, suffered from the competition from cheap Chinese and Asian products, but in the long run as the economic climate improves, they are expected to recover. Mixed retailing also enjoyed an increase in sales, as this kind of format fulfilled consumer demand for convenient outlets with a wide range of products.
Coop: the leading retailer in Italy
The most important retailer was the Italian cooperative Coop, operating in grocery retailing. One of the most important keys to its success was the fact that it incorporated many small and medium-sized Italian businesses. In fact, these are the basis of the Italian retailing structure and they have an in-depth knowledge of local tastes and needs.
Good prospects for the future
In 2005 the Italian retail industry was quite static, mainly due to the poor economic performance of the country. Nevertheless, as the country recovers Italian consumers raise their expectations for the future. The retail industry is expected to continue to change in order to satisfy new consumer lifestyles and preferences. Therefore, retailers are likely to concentrate on convenience, value for money and a wider choice of goods to cater for different consumer needs.
Table of contents
1. EXECUTIVE SUMMARY
Italian retailing on its way to modernisation
Discounters break through
Private label products the key to success in grocery retailing
Convenience stores boom
Internet retailing highly dynamic
Non-grocery retailing continues to grow
Coop: the leading retailer in Italy
Good prospects for the future
2. OPERATING ENVIRONMENT
2.1 GOVERNMENT POLICIES
Law N 114/98
2.2 LEGISLATION
Stricter laws concerning the opening of outlets larger than 1,500 sq m
Pharmacy chains forbidden
Small-medium retailer lobby groups
2.3 OPENING HOURS
La siesta
2.4 RETAILING LANDSCAPE
Main street versus out of town
Shopping centres and malls
2.5 EMPLOYMENT IN RETAILING
Minimum wage
Table 1 Employment in Retailing: 2000-2005
3. RETAILING: RETAIL SALES
3.1 MARKET PERFORMANCE
Overview
Boom in non-store retailing
Non-grocery increases its share of total sales
Positive growth factors
Negative growth factors
Table 2 Sales in Retailing by Sector: Value 2000-2005
Table 3 Sales in Retailing by Sector: % Value Growth 2000-2005
Table 4 Sales of Grocery vs Non-Grocery in Retailing 2000-2005
4. RETAILING: COMPETITIVE ENVIRONMENT
4.1 LEADING RETAILERS
Coop leads the way
Foreign presence quite strong
Foreign competitors intensify competition in hypermarket and supermarket channels
Multinationals gain share through acquisitions
Italian cooperatives
The elements of success: private label and high-quality products
Table 5 Retailing Company Shares: % Value 2004-2005
4.2 RECENT MERGERS AND ACQUISITIONS
Acquisitions made by multinationals while
partnerships entered into by local players
Increasing concentration
Summary 1 Major Mergers and Acquisitions 2001-2005
4.3 CONCESSIONS
5. PRIVATE LABEL
5.1 RETAILERS AND THEIR STRATEGIES
Strategies
Positioning
Penetration
Summary 2 Selected Retailers and their Private Label Products 2005
6. RETAILING: FORECAST MARKET PERFORMANCE
Overview
Positive growth factors
Negative growth factors
Table 6 Forecast Sales in Retailing by Sector: Value 2005-2010
Table 7 Forecast Sales in Retailing by Sector: % Value Growth 2005-2010
7. MARKET PERFORMANCE: GROCERY RETAILERS
7.1 OVERVIEW
Key trends and developments
Competitive environment
News
Forecast
Table 8 Grocery Retailers by Sector: Value 2000-2005
Table 9 Grocery Retailers by Sector: Units 2000-2005
Table 10 Grocery Retailers by Sector: Selling Space 2000-2005
Table 11 Grocery Retailers by Sector: % Value Growth 2000-2005
Table 12 Grocery Retailers by Sector: % Unit Growth 2000-2005
Table 13 Grocery Retailers by Sector: % Selling space growth 2000-2005
Table 14 Grocery Retailers Company Shares: % Value 2004-2005
Table 15 Grocery Retailers Brand Shares: % Value 2004-2005
Table 16 Grocery Retailers Forecasts by Sector: Value 2005-2010
Table 17 Grocery Retailers Forecasts by Sector: Units 2005-2010
Table 18 Grocery Retailers Forecasts by Sector: Selling Space 2005-2010
Table 19 Grocery Retailers Forecasts by Sector: % Value Growth 2005-2010
Table 20 Grocery Retailers Forecasts by Sector: % Unit Growth 2005-2010
Table 21 Grocery Retailers Forecasts by Sector: % Selling space growth 2005-2010
7.2 FOCUS SECTOR: DISCOUNTERS
Key trends and developments
Table 22 Discounters: Value Sales, Outlets and Selling Space 2000-2005
Table 23 Discounters: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 24 Discounters Company Shares by Value 2004-2005
Table 25 Discounters Brand Shares by Value 2004-2005
Table 26 Discounters Company Shares by Outlets 2004-2005
Table 27 Discounters Brand Shares by Outlets 2004-2005
Table 28 Discounters Company Shares by Selling Space 2004-2005
Table 29 Discounters Brand Shares by Selling Space 2004-2005
Table 30 Discounters Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 31 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
7.3 FOCUS SECTOR: CONVENIENCE STORES
Key trends and developments
Competitive environment
News
Forecast
Table 32 Convenience Stores: Value Sales, Outlets and Selling Space 2000-2005
Table 33 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 34 Convenience Stores Company Shares by Value 2004-2005
Table 35 Convenience Stores Brand Shares by Value 2004-2005
Table 36 Convenience Stores Company Shares by Outlets 2004-2005
Table 37 Convenience Stores Brand Shares by Outlets 2004-2005
Table 38 Convenience Stores Company Shares by Selling Space 2004-2005
Table 39 Convenience Stores Brand Shares by Selling Space 2004-2005
Table 40 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 41 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8. MARKET PERFORMANCE: NON-GROCERY RETAILERS
8.1 OVERVIEW
Key trends and developments
Forecast
Table 42 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 43 Non-Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 44 Non-Grocery Retailers Company Shares by Value 2004-2005
Table 45 Non-Grocery Retailers Brand Shares by Value 2004-2005
Table 46 Non-Grocery Retailers Company Shares by Outlets 2004-2005
Table 47 Non-Grocery Retailers Brand Shares by Outlets 2004-2005
Table 48 Non-Grocery Retailers Company Shares by Selling Space 2004-2005
Table 49 Non-Grocery Retailers Brand Shares by Selling Space 2004-2005
Table 50 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 51 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8.2 FOCUS SECTOR: HEALTH AND BEAUTY RETAILERS
Legislation
Multiple ownership is not allowed
Key trends and developments
Forecast
Table 52 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 53 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 54 Health and Beauty Retailers Company Shares by Value 2004-2005
Table 55 Health and Beauty Retailers Brand Shares by Value 2004-2005
Table 56 Health and Beauty Retailers Company Shares by Outlets 2004-2005
Table 57 Health and Beauty Retailers Brand Shares by Outlets 2004-2005
Table 58 Health and Beauty Retailers Company Shares by Selling Space 2004-2005
Table 59 Health and Beauty Retailers Brand Shares by Selling Space 2004-2005
Table 60 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 61 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
9. NON-STORE RETAILING: VENDING
Key trends and developments
Competitive environment
Forecast
Table 62 Vending: Value 2000-2005
Table 63 Vending: % Value Growth 2000-2005
Table 64 Vending Company Shares by Value 2004-2005
Table 65 Vending Brand Shares by Value 2004-2005
Table 66 Vending Forecasts: Value 2005-2010
Table 67 Vending Forecasts: % Value Growth 2005-2010
10. NON-STORE RETAILING: HOMESHOPPING
Key trends and developments
Competitive environment
Forecast
Poor postal service to be overcome in the future
Table 68 Homeshopping: Value 2000-2005
Table 69 Homeshopping: % Value Growth 2000-2005
Table 70 Homeshopping Company Shares by Value 2004-2005
Table 71 Homeshopping Brand Shares by Value 2004-2005
Table 72 Homeshopping Forecasts: Value 2005-2010
Table 73 Homeshopping Forecasts: % Value Growth 2005-2010
11. NON-STORE RETAILING: INTERNET RETAILING
Key trends and developments
Forecast
Table 74 Internet Retailing: Value 2000-2005
Table 75 Internet Retailing: % Value Growth 2000-2005
Table 76 Internet Retailing Company Shares by Value 2004-2005
Table 77 Internet Retailing Brand Shares by Value 2004-2005
Table 78 Internet Retailing Forecasts: Value 2005-2010
Table 79 Internet Retailing Forecasts: % Value Growth 2005-2010
12. NON-STORE RETAILING: DIRECT SELLING
Key trends and developments
Competitive environment
Forecast
Table 80 Direct Selling: Value 2000-2005
Table 81 Direct Selling: % Value Growth 2000-2005
Table 82 Direct Selling Company Shares by Value 2004-2005
Table 83 Direct Selling Brand Shares by Value 2004-2005
Table 84 Direct Selling Forecasts: Value 2005-2010
Table 85 Direct Selling Forecasts: % Value Growth 2005-2010