Mixed retailers in Algeria is expected to register a healthy double-digit current value CAGR over the forecast period, as consumers are likely to favour department stores due to their affordable prices, frequent discounts and use of price promotions. The key factor affecting the performance of mixed retailers over the forecast period will be whether players will be able to expand their sales or reduce their expenses sufficiently to be able to achieve profitability, and then move on to opening new outlets.
Of all the channels in mixed retailers, only department stores has a significant presence in Algeria. However, although department stores have been present in the country for a while, they lack appeal to Algerian shoppers.
Mixed retailers is expected to continue to register a positive performance over the forecast period, although this growth is set to be slower than the value CAGR recorded in the channel in the review period at constant 2018 prices. This slowdown will be attributed to the fact that the premium segment is expected to be the most affected by the unstable economic situation in the country, with a growing number of consumers shifting to mass products, although companies will continue to focus on improving the high-end shopping experience offered to consumers.
Le Printemps continued to lead mixed retailers in terms of overall value sales in 2018, although this player accounts for a fairly low value share due to the high fragmentation of the competitive landscape in mixed retailers. Le Printemps is the most popular department store in Algeria, present through a well-established chain of stores located in shopping centres in major cities.
Areej Shopping was the third company in mixed retailers in 2018, after Le Printemps and Khawaja. This department store is well-established in Algeria and leverages its strong brand name amongst consumers.
Le Printemps, Khawaja, Areej Shopping, Al Aniq and Sans Visa Centre were the leaders in department stores in value terms in 2018, and thus in overall mixed retailers; they all held double-digit value shares. They are expected to remain the leaders over the forecast period, based on their long-standing presence in the channel, which has led to strong brand recall amongst consumers.
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This industry report originates from Passport, our Retailing market research database.