Supermarkets in Hong Kong, China

PROSPECTS

Increased local demand drives sales for supermarkets

With intense protests in Hong Kong affecting local consumers’ weekend routines and their emotions, many consumers turned to grocery retailers for daily necessities in 2019, boosting demand for grocery products at supermarkets. Many Hong Kong consumers shop and dine out during the weekend and on bank holidays for leisure.

Economical supermarkets recapture consumers’ minds

Economic uncertainty during the review period caused consumers in Hong Kong to be more price-sensitive, bringing the concept of “supermarkets must be economical” back into consumers’ minds. The US-China trade war and the protests in Hong Kong contributed to ongoing economic uncertainty in 2019, followed by low consumer confidence.

Players continue to enhance the shopping experience

During the review period, supermarkets in Hong Kong invested much in initiatives to enhance their customers’ shopping experience. This is set to continue over the forecast period.

COMPETITIVE LANDSCAPE

Wellcome continues to lead supermarkets

Despite the slight drop in its number of stores and its value share, Wellcome was able to maintain its position as the largest player in supermarkets in 2019. Wellcome’s stores have remained relatively stable amid economic uncertainty in Hong Kong.

AS Watson Group focuses more on premium supermarkets

AS Watson Group, the largest supermarket company owning several banners in Hong Kong, has shifted its focus from mass to premium supermarkets. During the review period, there was a sharp decrease in store number and value sales for AS Watson Group’s flagship mass supermarket, ParknShop, while its premium supermarkets, Fusion and TASTE, expanded in both store number and value share.

Smaller players become more prominent

Although Hong Kong supermarkets is dominated by big players, smaller players have started to gain more popularity. Smaller players grew in terms of both store number and value sales in 2019.

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