Leading players like Oba Market LLC (Oba), AL Market LLC (AL Market), Azretail MMC (Araz) and Azerbaijan Supermarket LLC (Bravo) have implemented strong expansion strategies focused on opening new outlets, mostly smaller formats like convenience stores. For instance, Azerbaijan Supermarket announced plans to spend more than AZN50 million on implementing its strategic growth plan of construction and reconstruction projects in 2021-2022.
The digitalisation of physical stores is another trend that became increasingly visible in the country in 2021. For example, the largest chained modern grocery retailer, Oba Market, launched a mobile app: OBA Market.
Convenience stores registered the strongest retail current value sales growth in modern grocery retailers throughout the review period, including 2021. Consequently, the retail value share of the channel in total grocery retailing continued to increase.
The forecast for modern grocery retailers is positive as the category is far from saturation. The penetration of modern retailing remains uneven within the country, although major chained players are actively expanding across the country.
Convenience stores is expected to continue to register the fastest retail value sales growth over the forecast period, in line with a global trend for small formats. However, growth is set to continue to be driven mostly by low prices as chained players compete with independent small grocers and other traditional grocery retailers, as well as convenience, instant access to products and the proximity of outlets to consumers’ homes.
Modern grocery retailers is unlikely to see a major move online, as consumers in Azerbaijan are quite conservative when it comes to shopping for groceries. Traditional bazaars and street vendors will still offer significant competition to modern grocery retailers when it comes to fresh groceries, as these informal retailers exploit closer relationships with individual farmers to sell products at lower prices.
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Understand the latest market trends and future growth opportunities for the Modern Grocery Retailers industry in Azerbaijan 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 Modern Grocery Retailers industry in Azerbaijan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Modern grocery retailing is the aggregation of those grocery channels that have emerged alongside the growth of chained retail. For Euromonitor, modern grocery retailing is the aggregation of five channels: Hypermarkets, Supermarkets, Discounters, Forecourt Retailers and Convenience Stores. While there can be traditional (i.e. non-chained) supermarkets or forecourt retailers, for example, due to the store's presence in the channel, these stores are still considered as modern for Euromonitor International.
See All of Our DefinitionsThis report originates from Passport, our Modern Grocery Retailers research and analysis database.
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