Food and Drink Internet Retailing in Bulgaria

PROSPECTS

Hectic lifestyles drive demand

Food and drink remains a relatively small area of internet retailing, accounting for less than 7% of the channel’s overall value in 2018. However, food and drink internet retailing is expected to grow strongly over the forecast period, driven by a rising demand for convenience amongst young urban consumers with hectic lifestyles that leave little time for visiting grocery stores and queueing at checkouts.

Store-based players reluctant to engage in internet retailing

While the growing commitment of store-based players to the development of online retailing is proving to be an important driver of growth in internet retailing in many product categories, the situation is notably different in food and drink. Major grocers have shown a marked reluctance to engage in e-commerce in Bulgaria, partly as a result of a strong desire to avoid pricing competition.

New legislation makes for a more controlled environment

A new law on food safety, for which the Bulgarian parliament voted in October 2017, makes explicit and separate provision for online sales of food and drink for the first time. The new legislation requires all online retailers selling food and drink to register with and gain approval from the Food Safety Agency before commencing business.

COMPETITIVE LANDSCAPE

Small operations with limited geographic reach

Food and drink internet retailing in Bulgaria is contested primarily by small enterprises focusing their activity on one or two urban centres. Some players are pure internet retailers and some are bricks-and-mortar businesses developing an online sales channel, though the major grocers remain reluctant to engage in online retailing.

Category leader looking to expand

Convenience OOD is the leading operator in food and drink internet retailing through the ebag.bg brand.

KOOP’s online presence lacks commitment

The convenience store operator, KOOP Targovia I Turizam AD, launched online sales of grocery products with nationwide delivery in 2014. The company’s online offer initially consisted entirely of private label food and drink, but was later expanded to include child care products, apparel and footwear, consumer electronics and media products.

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