Non-Grocery Specialists in Georgia

PROSPECTS

Increasing number of shopping centres will support further growth of categories within non-grocery specialists over the forecast period

An increasing number of shopping centres in Georgia, and especially in the capital, is starting to support slow but stable growth of underdeveloped categories. The brightest examples are home improvement and gardening stores, and jewellery and watch specialist retailers.

Geographical polarisation of non-grocery specialists, aside from health and beauty specialist retailers, is expected to continue

Several central streets in urban areas of Georgia were the main focus for non-grocery specialists for decades, including in the first half of the review period; however, the take-off of shopping centres resulted in a change in development. The distant locations of newly built shopping centres enabled retailers to cut down on rent expenses, which appeared to be a strong trigger for developing the shopping centre concept in Georgia.

Chemists/pharmacies’ value share within non-grocery specialists expected to shrink over the forecast period

With the channel of chemists/pharmacies having entered maturity, its value share within non-grocery specialists is set to decline. With stabilisation of the local currency against the US dollar and the euro and also gradually increasing disposable incomes, Georgians are expected to increase their expenditure on products considered less basic, such as clothes, electronics, leisure and personal goods.

COMPETITIVE LANDSCAPE

Acquisitions in 2016 change the share structure within non-grocery specialists

In the first half of 2016, Georgian Healthcare Group acquired two significant players within health and beauty specialist retailers. Pharmadepot and GPC are leading brands not only within health and beauty specialist retailers, but also in overall non-grocery specialists, reaching rankings of third and fourth in value terms in 2017.

Aversi Pharma Co Ltd loses top spot in 2017

As a result of the Georgian Healthcare Group acquisitions, Aversi Pharma Co slipped to second position in 2017. However, the Aversi chain is still the biggest in non-grocery specialists.

Anticipated entry of H&M is expected to affect the share structure within apparel and footwear specialist retailers

With the strengthened desire of consumers for branded clothes, the space for competition is increasing gradually. Fewer Georgians are keen on wearing unbranded products from bazaars; however, due to low disposable incomes, not many can afford expensive brands, which resulted in the planned appearance of a H&M store in Georgia by September 2017.

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