A further increase in operational expenses is expected; it is mostly wages, wage-related levies and logistics that are set to bite into retail margins, particularly in locations within the close catchment areas of other modern grocers or in smaller villages far from logistics centres. Operators try to prevent outlet closures, and shorter opening hours with a reduced workforce are the main tools to cut costs, but most of such outlets are not able to manage further tightening.
Convenience stores in central Budapest have the best potential to benefit from busy periods, as extended opening hours and good location targeting heavy foot traffic from the neighbourhood help sustain business. These outlets rely mostly on people working in the surrounding offices and passers-by.
Many convenience stores are run under various franchise schemes. Independent retailers can choose who to partner with based on the offered conditions and the perceived potential behind the selected franchise brand to attract customers.
Coop, CBA and Reál are the most established convenience store brands with national coverage. These three brands supplied nearly 6,000 outlets as of 2018, the vast majority of total convenience stores.
Spar Magyarország Kereskedelmi launched the Spar franchising concept in 2013 to cover geographic regions where its own supermarket or hypermarket formats would not be profitable due to small economies of scale. Teaming up with local retailers seems to be a good option to cover these areas and further expansion of outlets is expected during the forecast period, as the first entries are proving good case studies for others to join the partnership.
Regardless of location, discounters is the biggest threat to convenience stores, which tend to offer smaller assortments and higher prices. It is not just discounters in the same district or town, but those within a larger, 15-20km radius from a store can cannibalise sales.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Delivery method: instant download
Report format: PDF
(download a sample)
(download a sample)
Discover the latest market trends and uncover sources of future market growth for the Convenience Stores industry in Hungary with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Convenience Stores industry in Hungary, our research will save you time and money while empowering you to make informed, profitable decisions.
The Convenience Stores in Hungary market research report includes:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our Retailing market research database.