Supermarkets in Belgium

2020 IMPACT

Supermarkets sees a small boost in 2020, thanks to stockpiling trend benefiting all grocery retailers

Supermarkets saw a small boost in 2020, thanks to the stockpiling trend and switch from on-trade to off-trade consumption benefiting all grocery retailers. However, despite faring better than discounters, supermarkets did not show the same value growth as convenience stores.

Ongoing competition from food and drink e-commerce will force supermarkets to increase their online offerings

The event of COVID-19 in 2020 has pushed all retailers to focus on developing their online presence and enhance their e-commerce capabilities. However, this worked in line with store-based sales in supermarkets in 2020, as demand for groceries was high during the stockpiling season.

Colruyt and Delhaize maintain their positioning, whilst the sustainable färm brand concept continues to grow

Etn Franz Colruyt NV maintained its lead in supermarkets in 2020, followed by Koninklijke Ahold Delhaize NV and Carrefour Belgium SA/NV as the only other players with double-digit value shares. Colruyt owes its success to the strength from its three brands, Colruyt, Bio-Planet and Cru.

RECOVERY AND OPPORTUNITIES

A progressive return to post-COVID-19 normality will see demand switch away from grocery retailers and back to foodservice

A progressive return to normality, post-COVID-19, means that consumer demand will gradually shift back to foodservice and, therefore, off-trade demand for groceries will be lower than seen in 2020. It is expected that supermarkets will see negative-figure declines in 2021-2022 as a direct drop result, with a return to small growth over the forecast period.

Ongoing competition from food and drink e-commerce set to become fiercer over the forecast period

Competition from food and drink e-commerce will become fiercer over the forecast period, with most retailers now strongly investing in their online presence and e-commerce channels. This is particularly notable with the big players such as Delhaize, Colruyt, Carrefour and Albert Heijn, and will play a negative role for store-based sales for supermarkets over the forecast period.

Slowdown in organic trend due to lower consumer spending power

An interesting pre-COVID-19 development was the increasing popularity of supermarkets specialising in organic produce, for example as seen with the sustainable färm brand, which is marketed as being “the organic alternative to mass retailing.” However, this growing trend has been slowed down by the event of COVID-19.