Traditional grocery retailers continued to lose value share to modern grocery retailers, with constant value sales actually falling in 2021. Consumers appreciate the wide range of goods in modern grocery retailers and with society opening up in 2021, consumers were not keeping close to home and shopping in local neighbourhood stores.
Although traditional grocery retailers accounts for the largest value share amongst grocery retailers in the country, no single company had a significant value share in 2021. The channel boasts the highest number of outlets, but the majority of traditional grocery retailers have considerably smaller selling space than modern grocery retailers and other retailers and, consequently, traditional grocery retailers typically record fewer sales per outlet.
A group of national breweries have got together to help traditional grocery retailers increase their online presence. AlmacenesUY is a platform created to enable customers to easily find the closest store to their location and also to place an order via WhatsApp.
Over the forecast period, traditional grocery retailers will register minimal constant value growth. Continued infrastructure investment by chained modern grocery retailers is set to significantly cannibalise grocery sales.
Although traditional grocery retailers will maintain their value sales lead over modern grocery retailers over the forecast period, the gap is expected to narrow as traditional grocery retailers struggle to compete for shoppers on several levels, including in terms of modern payment options, more flexible opening hours and frequent discounting. Over the forecast period it is expected that low-income consumers will become the primary clients of traditional grocery retailers, with mid-income and high-income consumers continuing to migrate to modern grocery retailers with their wide variety of imported brands.
One potential area of growth would be more specialised chains of traditional grocery retailers, such as butchers or green grocers. There are examples of this in neighbouring countries, with chains mainly operating under a franchise model, which enables a business owner to set up a store with less investment than needed if operating independently.
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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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