Sales at traditional grocery retailers have been increasing in current value terms in 2020 and 2021, even as the number of outlets and selling space have been declining. This has been occurring as the traditional grocery retailers channel continues to split into two parts.
Independent players were growing faster than chains in 2021. Chains have many outlets in city centres, which saw less footfall due to lockdowns in the first and fourth quarters of 2021.
Some traditional grocery retailers benefitted somewhat from the pandemic, with people working from home, looking to avoid travelling and also trying to avoid crowded areas. This meant more people were looking to “shop local”, increasing the likelihood of popping in to a neighbourhood store.
Consumers will likely resume their previous shopping habits in 2021, with most grocery shopping taking place at supermarkets. However, while shoppers may buy in bulk at supermarkets, some consumers, especially higher-income shoppers, are likely to continue to shop locally for specific high-quality products, eg from a local butcher, baker etc.
Traditional grocery retailers such as Jamin (confectionery) or Cigo (newsagent) are likely to suffer as their role in the local neighbourhood continues to become less important. These shops have less and less of a USP, with the demand for the products they sell in decline or these goods being easily accessible in a wide variety of other types of retail outlet, eg supermarkets or convenience stores.
Odin and Ekoplaza position themselves as supermarkets selling only organic food products, catering to the health and wellness trend as well as the interest in organic food in the Netherlands. Their outlets are often located in wealthier residential areas, so that they are local shops with a clientele that is often willing to spend more on such products.
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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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