Traditional formats remained very strong in grocery retailing in 2021, although traditional grocery retailers’ value share continued to be ceded to modern grocery retailers. Changing consumer shopping habits during the pandemic accelerated a shift away from traditional grocery retailers in Azerbaijan towards modern grocery retailers.
Despite the positive overall performance of grocery retailing and only a slight drop in retail current value sales for traditional grocery retailers in 2021, the pandemic had a stronger impact on traditional grocery retailing than on modern grocery retailing. Due to lockdown policies, traditional forms of grocery retailing like bazaars were forced to operate at reduced capacity.
A key competitive advantage for traditional grocery retailers before and during the pandemic lay in the strong personal relationships these operators have established among their highly localised consumer bases. Anxiety during lockdown unsurprisingly sharpened, and retailers that are able to strengthen their service offer in response to consumer demand thrived.
While traditional grocery retailers is expected to see positive, if slight, retail value (constant 2021 prices) growth through the forecast period, the number of outlets and selling space are set to continue to decrease, albeit gradually. Thus, traditional grocery retailers is predicted to continue to cede retail value share to modern grocery retailers.
Eastern-style traditional retail formats like bazaars are set to remain a strong component of grocery retailing in the forecast period. Consumers enjoy shopping in bazaars for fresh products, usually produced locally.
The competition is expected to increase for independent small groceries in the form of modern grocery retailers like Oba Market and AL Market. These players also offer low prices and convenient locations, which are among the main competitive advantages of the traditional grocery channel.
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Understand the latest market trends and future growth opportunities for the Traditional Grocery Retailers industry in Azerbaijan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. For Euromonitor traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers. While there can be modern (i.e. chained) food/drink/tobacco specialists or other grocery retailers, due to the store's presence in the channel, these stores are still considered as traditional for Euromonitor International.
See All of Our DefinitionsThis report originates from Passport, our Traditional Grocery Retailers research and analysis database.
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