Traditional grocery retailers gained from the pandemic lockdowns, as with people’s movements being restricted, they shopped in local neighbourhood stores. Essentially COVID-19 had the effect of boosting the growing trend for shopping locally and supporting local businesses in Switzerland.
Traditional grocery retailers are an extremely diverse segment, with a wide range of different outlet types offering a variety of different products. Bakeries, coffee shops, wine shops and more general outlets are included in the mix.
Traditional grocery retailers are also suffering from a lack of digital and omnichannel offerings. However, chains are in a stronger position to offer online options, as they have more know-how.
Traditional grocery retailers will register moderate constant value growth over the forecast period. While traditional grocery retailers are expected to perform positively, it is nonetheless expected to lose sales to modern grocery retailers.
Players with a distinct product proposition or which specialise in a specific segment, such as coffee, wine, organic food or brezels (pretzels), are expected to perform positively due to their unique offerings. Other more general outlets will find it difficult to survive mounting competition from larger retail channels.
Due to the large amount of independent, smaller retailers within traditional grocery retailers, the number of outlets is expected to remain high, albeit with various fluctuations within the competitive landscape. However, larger chained providers are likely to gain a larger foothold, as they benefit from economies of scale, with smaller independent stores continuing to struggle from the growing competition.
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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 Definitions
This report originates from Passport, our Traditional Grocery Retailers research and analysis database.
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