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Strategy Briefing

Hypermarkets and Mass Merchandisers: Strategies to Remain Relevant

34 pages, Feb 2014

US$1,325

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About This Report

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Hypermarkets and mass merchandisers face increasing challenges from internet retailers and smaller store formats with a competitive offer and greater expansion prospects, such as convenience stores, discounters and variety stores. This report analyses the performance of big-box retailers against competing channels and shows where they retain expansion prospects, mostly in emerging markets. It also covers innovations taken by key operators to offset these challenges and remain relevant formats.

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Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Pressure on large store formats in developed markets set to intensify

Shifts in consumer behaviour resulting from unfavourable demographic trends and the rise of internet retailing have led to more challenging conditions for hypermarkets and mass merchandiser operators. As these challenges are expected to become even more pronounced, efficiency gains will take precedence over expansion to maintain profits, especially in developed markets, encouraging a focus on innovation and new concepts.

A more targeted approach towards expansion in emerging markets

Although emerging markets still offer vast expansion opportunities for international hypermarket operators, they will need to be more targeted, as several markets, notably BRICs, are moving towards maturity, with highly challenging conditions in first-tier cities and local players making inroads against global retailers, thus intensifying competition.

Optimal store size: more compact units with flexible store concepts

Although expansion opportunities in developed markets are limited, potential for opening new stores with smaller sizes of up to 7,000 sq m remains, through flexible concepts allowing hypermarkets to be more closely adapted to each catchment area and to target some locations close to residential areas enabling store visits within busy lifestyles. Reduced store sizes with smaller non-food areas may also boost sales per sq m.

Innovations in store format and assortment

Hypermarket players aim to retain the format’s relevance, especially against internet retailers, by specialising in fresh food and a few core non-food food categories, often using smaller stores. Beyond retailing, they will seek to offer more services targeting single and small households, notably including young adults and elderly shoppers.

Boosting multi-channel synergies to gain advantage over pure play internet retailers

Multi-channel strategies will increasingly focus on synergies between store-based and online activities and offset the decline in non-food sales, notably by boosting click-and-collect delivery options, including drive-through locations. Retailers will seek other uses for selling space no longer used for non-food, notably to fulfil online orders, and bolster supply chain efficiencies to gain a price advantage against pure play internet retailers.

What this report includes

Top-level strategic analysis of how major consumer trends will influence global markets
Consumer insight
Impact across all relevant consumer markets
Unique graphics and case studies
Key market snapshots
Accompanying presentation to synthesise main findings

Why buy this report

Identify factors driving change now and in the future
Understand motivation
Forward-looking outlook
Briefings and presentation should provoke lively discussion at senior level
Take a step back from micro trends
Get up to date estimates and comment

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Introduction

Scope

Key findings

Competitive context in hypermarkets: High level of concentration

Competitive context in mass merchandisers: Challenging conditions

Channel Performance and Challenges From Other C hannels

Hypermarkets and mass merchandisers lose out to other channels

Channel Performance and Challenges From Other Channels

Demographic challenges: Smaller households, ageing populations

Surplus space for hypermarkets due to recent over-expansion

Decline of larger stores against small stores: Global vs local factors

Hypermarket saturation against modern grocery formats in Europe

Compact stores the bright spot for Western Europe’s hypermarkets

Shift to internet retailing: Challenges for physical grocery retailers

Online vs store-based: Between cannibalisation and opportunities

geographic Strategies to Offset Saturation in Developed Markets

Global hypermarket players facing developed market decline

Hypermarket growth increasingly biased towards emerging markets

Mass merchandisers: Declining sales in most markets bar Canada

China: Slowdown for global hypermarket players against local ones

Southeast Asia: Opportunities for local and global hypermarkets

Latin America: Solid hypermarket growth driven by largest players

F uture market entries in hypermarkets: Focus on smaller markets

Rising level of car ownership to boost growth in emerging markets

Format and Assortment S trategies

Key assortment and format strategies to retain formats’ relevance

Format and Assortment Strategies

Reduced size and more targeted store concepts for hypermarkets

F resh food a key element in hypermarkets’ recovery strategies

Food and drink internet retailing: French and UK retailers pioneers

Leveraging store-based presence to build multi-channel synergies

F ocus on non-retailing services to give stores a broader appeal

Retailers seek solutions to use hypermarkets’ surplus selling space

C onclusion

Key recommendations for hypermarkets and mass merchandisers

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Megatrends

Strategy Briefing

Hypermarkets and Mass Merchandisers: Strategies to Remain Relevant

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Pressure on large store formats in developed markets set to intensify

A more targeted approach towards expansion in emerging markets

Optimal store size: more compact units with flexible store concepts

Innovations in store format and assortment

Boosting multi-channel synergies to gain advantage over pure play internet retailers

What this report includes

Why buy this report

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Competitive context in hypermarkets: High level of concentration

Competitive context in mass merchandisers: Challenging conditions

Channel Performance and Challenges From Other C hannels

Hypermarkets and mass merchandisers lose out to other channels

Channel Performance and Challenges From Other Channels

Demographic challenges: Smaller households, ageing populations

Surplus space for hypermarkets due to recent over-expansion

Decline of larger stores against small stores: Global vs local factors

Hypermarket saturation against modern grocery formats in Europe

Compact stores the bright spot for Western Europe’s hypermarkets

Shift to internet retailing: Challenges for physical grocery retailers

Online vs store-based: Between cannibalisation and opportunities

geographic Strategies to Offset Saturation in Developed Markets

Global hypermarket players facing developed market decline

Hypermarket growth increasingly biased towards emerging markets

Mass merchandisers: Declining sales in most markets bar Canada

China: Slowdown for global hypermarket players against local ones

Southeast Asia: Opportunities for local and global hypermarkets

Latin America: Solid hypermarket growth driven by largest players

F uture market entries in hypermarkets: Focus on smaller markets

Rising level of car ownership to boost growth in emerging markets

Format and Assortment S trategies

Key assortment and format strategies to retain formats’ relevance

Format and Assortment Strategies

Reduced size and more targeted store concepts for hypermarkets

F resh food a key element in hypermarkets’ recovery strategies

Food and drink internet retailing: French and UK retailers pioneers

Leveraging store-based presence to build multi-channel synergies

F ocus on non-retailing services to give stores a broader appeal

Retailers seek solutions to use hypermarkets’ surplus selling space

C onclusion

Key recommendations for hypermarkets and mass merchandisers

Why buy this report?

Want to find out more about this report?

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