Traditional Grocery Retailers in Tunisia

PROSPECTS

Traditional grocery retailers remains the largest grocery distribution channel

Traditional grocery retailers remains highly fragmented in Tunisia. The channel is set to remain dominant within grocery retailers in Tunisia throughout the forecast period.

No government support

Despite the widespread and increasing presence of modern grocery retailers in Tunisia, the government has not developed any plans to protect traditional grocery retailers. Support programmes for such retailers are lacking, and many will find it more difficult to continue to survive in such a changing retail environment in Tunisia in the forecast period.

Traditional grocery retailers compete with a convenient credit system

It is very common in Tunisia for independent small grocers to offer benefits to customers, and many of them have developed loyal relationships with the traditional grocery retailers in their neighbourhoods. Low-income consumers find it very helpful to take goods and pay on a credit basis, mainly with an amicable arrangement such as paying back the grocer at the end of the month.

COMPETITIVE LANDSCAPE

The leader Poulina Group Holding performs well

In a highly fragmented channel, Poulina Group Holding, a poultry chain, led traditional grocery retailers ahead of its rival Société Chahia, operating in the same category. All of Poulina’s stores are located in towns and cities, and offer a broad array of poultry and processed meats.

A declining share for traditional grocery retailers

As consumers are increasingly shopping for groceries at supermarkets and hypermarkets, the overall trend within traditional grocery retailers in Tunisia during the review period was a declining share within overall grocery retailers. This was driven primarily by the better price deals and broader product assortment in modern grocery retailers.

Lower growth compared with modern grocery retailers

In 2018, there were around 120,000 traditional grocery retail outlets in Tunisia, including food/drink/tobacco specialists, independent small grocers and other grocery retailers. Overall, traditional grocery retailers posted moderate value growth in 2018, whilst modern grocery retailers saw higher growth.

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