Traditional grocery retailers recorded single-digit growth throughout the review period. Despite being pressurised by both the increasing popularity of online grocery retailing, as well as modern grocery retailers, traditional grocery retailers is still a very popular channel, especially in smaller cities, which modern channels have not yet penetrated.
With the currently inevitable decline in the number of people visiting traditional grocery retailers, they are becoming increasingly cornered. Other than the programme being carried out by the government to revitalise physical, management, economic or social aspects of traditional grocery retailers, another strategy that may preserve these retailers is to partner with or work together with modern grocery retailers (or even e-commerce companies) whenever possible.
Traditional grocery retailers is forecast to continue to record growth in the forecast period. One factor contributing to this is that the government is becoming more serious about trying to preserve traditional retailers by making more effort with its revitalisation programme.
There are two major channels pressurising the growth of traditional grocery retailers – modern grocery retailers and online grocery retailers. Modern grocery retailers have long existed and have been gradually and slowly taking share from traditional formats.
There are several factors which make traditional grocery retailers less competitive than modern grocery retailers. Traditional outlets tend not to be physically as comfortable for buyers.
The presence of convenience stores in various regions has become the trademark of modern and urban lifestyles. However, these formats have received a mixed response.
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