Outlet expansion by operators of hypermarkets is expected to be moderate over the forecast period due to persistent economic challenges, deterring retailers from investing in larger formats. The trend will be reinforced by anticipated slower real GDP increase of 1.
The shift towards digitalisation is expected to persist over the forecast period, supported by factors such as improved internet penetration, enhanced safety in payment systems and momentum in the mobile app culture. The trend is set to improve the visibility of hypermarkets, allowing the channel to better compete with other grocery formats due to more diversified offerings.
After decades of Shoprite and Pick 'n' Pay benefiting from long-term exclusive lease agreements across the most affluent shopping centres in South Africa, an investigation by the Competition Tribunal completed in 2019, found that such practices erode competitiveness and affect consumers' right to choice. As a result, the watchdog recommended a phasing out of exclusive lease agreements to meet regulatory guidelines, with Shoprite agreeing to this from 2024, followed by Pick 'n' Pay in 2026.
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Understand the latest market trends and future growth opportunities for the Hypermarkets industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Hypermarkets industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Hypermarkets are chained or independent retail outlets with a selling space of over 2,500 square metres and with a focus on selling both grocery and non-grocery merchandise. Hypermarkets are frequently located on out-of-town sites with large parking lots or as the anchor store in a shopping centre. Example brands include Carrefour, E Leclerc, and Walmart Supercenter.
See All of Our DefinitionsThis report originates from Passport, our Hypermarkets research and analysis database.
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