Growth in retailing continues in 2013
Retailing continued to achieve a positive performance in current value terms in 2013, due to the increase in the average price of consumer goods. However due to decreasing purchasing power, affected by taxation, as well as saturation, accompanied by tough competition in many categories, such as apparel and furniture, growth in value terms remained static compared with the review period. In this context there was a change in consumer preference in favour of low-cost items such as cheaper furniture and grocery products. Most retail channels achieved current value growth of 1-3% in 2013.
Internet retailing strongly penetrates the market
Internet retailing is having a significant impact on retailing in terms of setting new rules for the competition, and is increasing as alternative channel. Purchasing online is gaining popularity thanks to the lower prices offered, as retailers can save costs such as employees’ wages and rent in times of high price-sensitivity. This was a far-reaching effect of the 2011 social protests, which raised the issue of the high prices of consumer goods. Other factors spurring the growth of this channel were technological developments in terms of information security, encouraging more consumers to trust the process when it comes to purchasing online.
Modern grocery retailers strengthens
Grocery retailers accounted for a 44% share of overall retailing in 2013, with little change compared with the previous year. The main trend in grocery retailing is a rise in convenience stores and discounters. Decreasing purchasing power is pushing consumers to choose discounters, whilst convenience stores are gaining popularity thanks to the time-saving advantage and their high availability. Meanwhile, when comes to non-store retailing the shift towards internet retailing and the rising competition are affecting the market and driving changes, such as shifting to branded zones and concept stores as innovative solutions.
Shufersal continues to lead retailing
Shufersal maintained its undisputed lead in retailing in 2013 in current value and volume terms. In 2013 the company continued to invest in its website in terms of its online purchasing platform, offering comparisons between products and the option of replacing products with cheaper or healthier alternatives. Meanwhile, Mega Retail faces a threat to its growth, since it is perceived as less affordable by price-sensitive consumers, and therefore is considering making changes.
Growth in retailing is expected to continue
Retailing is expected to continue growing in the forecast period faster than in the review period in constant terms, due to the increase expected in the internet retailing channel. Internet retailing is the main growth engine. First, consumers are feeling safer to purchase through the web and second several new regulations entered into force in the last two years making it more worthwhile. For example, there is no VAT or import tax for personal imports under 75$. The outcome, in most industries will be the expansion of internet retailing at the expense of physical stores.
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Discover the latest market trends and uncover sources of future market growth for the Retailing industry in Israel with research from Euromonitor's team of in-country analysts.
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The Retailing in Israel market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic number of stores, selling space and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- How big is the grocery/non-grocery/non-store channel in Israel?
- Who are the leading retailers in Israel?
- How is retailing performing in Israel?
- What is the retailing environment like in Israel?
- Which channels are winning or losing in the fight for consumers’ money?
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- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Retailing market research database.