Mixed Retailers in Greece

TRENDS

As Greeks further cut their spending due to socio-political and financial conditions, they welcomed budget items, offers and discounts. Realising this tendency, a number of small, independent variety stores opened up over the last few years of the review period, focusing only on a narrow and necessary range of budget products. Consumers felt safer shopping in these stores, as with the narrow product range, they felt they would not get carried away and make any unnecessary purchases. At the same time, Jumbo continued to expand and invest in its brand name by launching extensive TV advertising campaigns and radio spots. As a result, the category posted a 5% retail value increase in 2016, in contrast to most areas of retailing.

COMPETITIVE LANDSCAPE

The Greek company Jumbo Hellas led mixed retailers in 2016 with a value share of 56%. The company operates the Jumbo chain, which actually began as a toys and games supermarket, yet gradually shifted to a variety store with a very wide product mix. The brand is clearly positioned at the budget-priced level and manages to offer very low prices, mainly by importing and placing custom orders from China. The company has also invested in extensive advertising campaigns targeting Greek seasonal events, such as Christmas and the start of school year, but also promoted its discounts and sale offers.

PROSPECTS

Mixed retailers is set to record slow growth over the forecast period, mainly by responding to demand for budget lines and product variety. With the Greek economy being far from stable, consumers are set to continue to hunt for offers and to consider price as very important. Another significant factor impacting the channel’s growth is the future development of its leading chain, Jumbo. Given that it held a 56% value share of mixed retailers in 2016, the future of the company is set to determine the future course of the whole channel. In this vein, Jumbo is very much focused on network development, keeping its prices affordable and its product range wide and growing, and with the company’s financial status being rather healthy and profitable, all seems positive for the future.

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