Supermarkets in Austria

PROSPECTS

Supermarkets remains key channel in grocery retailers

Supermarkets continued to hold high share of both outlet numbers and value sales in grocery retailers in Austria in 2018. In the face of continuing expansion plans, the channel’s strong role is expected to remain stable over the forecast period.

Spar continues to seek inspiration from other channels

To successfully compete with continuously trending channels such as discounters and health food stores, supermarkets will continue to adapt its product ranges. While private label lines offering budget-priced ranges have become obligatory to compete with the private label standard ranges of discounters, diversification increased over the review period.

Billa expands product range and selling space

By the end of 2017, the leading Billa chain from competitor Rewe International reported a private label share of 27% of its overall value sales. In November, Billa reopened its store on Perfektastraße in Vienna, which represents a blueprint for the future of the chain.

COMPETITIVE LANDSCAPE

Spar Österreichische Warenhandels retains leadership of supermarkets

Spar Österreichische Warenhandels continued to lead supermarkets in Austria in 2018 and is set to defend its lead over the forecast period despite the expansion plans of main competitor Rewe International. By the end of the review period, the company’s portfolio in supermarkets included more than 1,000 Spar stores with an average selling space of 550 sq m and 191 Eurospar stores with selling spaces between 1,000 and 2,000 sq m and an extended choice, especially in non-grocery products.

Tapping into the health trend

Instead of expansion, Spar Österreichische Warenhandels is expected to concentrate mainly on emphasising its local origins and optimising its product portfolio to trends such as rationality, sustainability and health awareness. In 2017, the retailer started a campaign aiming to drastically reduce the sugar content of foodstuffs.

Expansion plans in a highly saturated environment

The number of supermarkets was already very high in Austria by the end of the review period. In late-2017, Rewe International surprised many experts by announcing very aggressive expansion plans for its Billa supermarket chain, targeting more than 100 store openings over the course of the forecast period.

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