Retailing in Bosnia-Herzegovina

Key trends shaping the retailing industry

This report analyses the performance of the retailing industry in Bosnia-Herzegovina during the review period, identifying major trends and behavioural shifts that are shaping specific retailing channels. The report covers changes in consumer preferences, often driven by retailers’ perceptions about the direction in which retailing in the country should go.

Trust returns to the grocery retailing value chain

Growth in modern grocery retailers slowed during the review period due to a declining level of trust across the value chain in Bosnia-Herzegovina. The bankruptcy of Tuš Trade and fear that the same would happen to Konzum raised concerns that the entire modern grocery retailing value chain might collapse.

Shopping centres attract non-grocery businesses

In non-grocery retailing, there has been a strong shift of businesses from downtown locations into shopping centres. Shopping centres, whether those located outside of urban areas or the more modern city shopping centres, are benefiting from concentration of businesses, largely non-grocery retailers, with some foodservice and other service providers mixed in, typically with a single large grocery outlet, which attract consumer masses for the convenience and the experience of doing most of their shopping at one location.

Internet retailing grows to become the leading non-store retailing channel

Growth in non-store retailing in Bosnia-Herzegovina is significantly faster relative to store-based retailers, but overall sales are still considerably lower. At the end of the review period, internet retailing overtook direct selling as the largest non-store retailing channel maintaining double-digit growth rates.

Opportunities for small players to thrive in retailing

The most innovative concepts in retailing over the forecast period are expected to come from small independent players, operating in a hostile environment dominated by powerful chains. While modern grocery retailers and other chained players began taking charge at the end of the review period, large chains are not designed to fill small gaps, which leaves considerable scope for the resurgence of small independent retailers in Bosnia-Herzegovina over the forecast period, both in grocery and non-grocery.

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