Supermarkets in Finland

PROSPECTS

Supermarkets overtakes hypermarkets as the largest grocery retailing channel

Supermarkets has become the largest grocery retailing channel overtaking hypermarkets in terms of value sales in Finland. Its performance is derived both from growth in traditional chains and the addition of a new chain.

Supermarkets adapt to consumer trends especially growing environmental consciousness

As the largest retailing and grocery retailing channel, larger trends visible in retailing are also present in supermarkets. This includes a focus on eliminating food waste and reducing plastic, such as the use of plastic bags.

Industry players set to return to operational basics as economic downturn predicted over the forecast period

While trends are important in boosting sales, many are short lived and therefore should not be overestimated in terms of their impact on overall channel sales. Much of this stems from disproportional attention in the media and by market players.

COMPETITIVE LANDSCAPE

S Group retains lead thanks to the popularity of its S-Market outlets

S Group remained the leading player in supermarkets in 2019. Its S-Market brand is not only the largest supermarket chain but also the largest retailing chain in Finland in value terms.

Smaller format stores benefit Kesko

Since Kesko’s acquisition of Suomen Lähikauppa’s brands and subsequent conversion of most to K-market convenience stores, Kesko is growingly strong in the smaller format. As the outlets are run by shopkeepers (S Group is a cooperative), the role of the individual is more central compared to hypermarkets and convenience stores.

Despite increasing consolidation Estonian A1000 Market set to make a tentative entrance

One significant trend in Finnish grocery retailing is consolidation where large players are becoming even larger through acquisitions and organic growth. Therefore, the predicted entry in 2020 of Estonian A1000 Market, which is expected to open two outlets, one in Helsinki and one in Tampere, is surprising.

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