Traditional grocery retailing remained a highly fragmented channel in 2018 with a significant number of independent players. Growing competition from modern grocery retailers such as convenience stores and forecourt retailers, in addition to pressure on prices, have all impeded the category from further growth.
According to 2017 official statistics, approximately 25% of the residents in Switzerland are not Swiss. This has obviously had an important impact on grocery retailers.
A key element of Nespresso’s success is that, unlike its competitors, the retailer does not sell its coffee capsules through retailers but directly through its select Nespresso boutiques where consumers can sample the range of coffees, seek expert advice and purchase coffee machines and accessories. In 2018, Nespresso launched a new boutique concept in Geneva.
The bakery chain Brezelkönig was one of the most successful traditional grocery retailers in 2018. Brezelkönig benefited from its convenience format and a broad range of bakery products.
Due to the ever-growing consumer base, the technological development and innovative products and services, as well as fast delivery methods, internet retailing negatively impacted sales of traditional grocery retailers in 2018, and more specifically the ones that do not benefit from a unique offering.
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