Almost three-quarters of the category’s value sales are accounted for by Alko. As a result, factors that affect the company have a crucial impact on the overall channel.
E-commerce recorded dynamic growth during the COVID-19 pandemic but Alko did not offer home deliveries due to restrictions on home deliveries of alcohol in Finland. As such, any orders placed online through Alko needed to be collected by consumers.
Traditional grocery retailers located in marketplaces and halls suffered a considerable decline in demand in 2020/2021 due to government advice to avoid crowded areas. Although there was no strict lockdown imposed in Finland, the government issued a strong recommendation that all elderly consumers over the age of 70 remain at home as much as possible.
In 2021, the wholesaler Wihuri Oy Aarnio ended its cooperation with Tarmo branded convenience stores, mostly located in small villages in Finland. These village stores have since long been experiencing difficulties.
Health and wellness trends and the growing importance of sustainable lifestyles in Finland are expected to remain trendy amongst a particular group of consumers in Finland, and this will benefit health and wellness positioned retailers in this category such as Ruohonjuuri. This player appeals to consumers with less mainstream tastes, as well as the environmentally conscious and those keen to take care of their health.
Due to the dominance of Alko in this channel, the development of traditional grocery retailers will continue to depend heavily on the success or failure of Alko over the forecast period. Despite a surge in demand during the COVID-19 pandemic, however, the outlook is not so positive for Alko once the threat of the health crisis subsides.
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Understand the latest market trends and future growth opportunities for the Traditional Grocery Retailers industry in Finland with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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If you're in the Traditional Grocery Retailers industry in Finland, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
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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