Supermarkets in Bulgaria

2020 IMPACT

Decreased growth mitigated through supermarket safety measures

In 2020, the COVID-19 pandemic led to many consumers seeing reduced incomes and unemployment. As such, there was a shift in consumer spending habits, with purchases focused on essentials and special offers.

Fantastico partners with foodpanda to take advantage of increasing shift towards e-commerce

In 2020, the supermarket brand Fantastico entered a partnership with foodpanda to expand its delivery service and reach more consumers during the COVID-19 pandemic. This was part of foodpanda’s strategy to boost sales through offering a diverse range of goods from several stores whilst foodservice operators were suffering from significantly reduced demand.

Plovdiv’s Triumph supermarkets to be managed and rebranded by Maxima Bulgaria

The Commission for Protection of Competition (CPC) allowed Maxima Bulgaria, the owner of the supermarket chain T-market to take over and manage 11 of Plovdiv’s Triumph stores with long-term contracts. These outlets will be repaired and rebranded under the company’s own brand T-market.

RECOVERY AND OPPORTUNITIES

Growth expected as supermarkets expand number of outlets and focus on mid- to high-income urban consumers

Over the forecast period, supermarket operators are expected to drive growth through expanding store networks to deepen their penetration of urban centres and enhance the convenience of their offerings. In doing so, retailers are set to utilise smaller store formats that are more suited to the development of widespread urban networks.

Supermarkets set to increasingly partner with e-commerce platforms to boost sales

The partnership between Fantastico and foodpanda is expected to be a success for both brands, particularly for the e-commerce platform, which see an improving performance during a difficult time for foodservice players. As such, further collaborations between modern grocery retailers and e-commerce platforms are expected, with this set to be a beneficial model for both types of retailer in 2021 and beyond.

Companies set to widen private label lines to attract new consumers

Over the forecast period, supermarket chains are expected to increasingly focus on private label development to expand their consumer base and compete more directly with discounters. This will be particularly true of the three main companies, Billa Bulgaria, Maxima Bulgaria and CBA Bulgaria.