While COVID-19 had a negative impact on the economy, with significant job losses and currency devaluation leading to price rises, modern grocery retailers fared relatively well. While current value growth was not as high as in 2020, current value increased all the same.
After dropping to second place in the previous year, MAF Hypermarkets Georgia (Carrefour) retook its leading position from Nikora JSC in 2021, in both value sales and share of modern grocery retailing in Georgia. While MAF Hypermarkets Georgia’s development during the review period had been dramatic, having expanded from a low base to achieve strong revenues, the company has been recently plagued by an increasingly competitive environment.
Hypermarkets enjoyed buoyant growth in value sales over the review period and growth rates are expected to rev up over the forecast period as the channel is set to rebound in response to the increasing number of budget-conscious consumers turning to the channel, attracted by the low prices on offer and the wider variety of products. In particular, growth in coming years will be fuelled as a result of the planned expansion of the successful Nikora XL format.
While value growth will not be high as prior to COVID-19, due to modern grocery becoming more mature – all the same, there will be steady value growth over the forecast period. In fact, by 2026, modern grocery retailers are expected to surpass traditional grocery retailers in terms of value sales.
The perception of modern grocery retailers continues to change in Georgia, particularly with the expansion of MAF Hypermarkets Georgia (Carrefour) and the presence of domestic players such as Nikora JSC and Goodwill setting new standards in grocery retailing. Hypermarkets, supermarkets and convenience stores are not considered to have significantly higher prices than open-air markets or other formats of traditional grocery retailing.
While consumers are increasingly turning to modern grocery retailers, there is nevertheless still a significant number of price-conscious shoppers who continue to visit traditional open-air markets and bazaars. However, these low-price venues are being challenged by the deep discounts offered by hypermarkets and during the review period this drove robust value growth, growth which is expected to continue over the forecast period as more shoppers are lured by the channel’s low prices.
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Understand the latest market trends and future growth opportunities for the Modern Grocery Retailers industry in Georgia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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 Definitions
This report originates from Passport, our Modern Grocery Retailers research and analysis database.
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