Variety Stores in Belgium

PROSPECTS

Variety stores suffers from steep decline in 2019

Variety stores saw a steep decline in 2019, mainly thanks to increased pressure from e-commerce and the closure of a high number of Blokker stores. Over the forecast period, Blokker Nederland plans to intensify its focus on e-commerce sales, with other variety stores operators expected to follow suit in order to remain competitive.

Action, Wibra and Flying Tiger Copenhagen remain reluctant to fully embrace e-commerce

Price and in-store promotions remain the central focus for most variety stores retailers in Belgium. Action stores Wibra België NV ‘s Wibra chain and Zebra A/S ‘s Flying Tiger Copenhagen chain continue to focus on convenience, price and upgrading and expanding their store-based outlets rather than investing heavily in e-commerce.

Blokker dives into e-commerce, radically reducing its network of outlets

Towards the end of the review period, Blokker Nederland attempted to cut costs by reducing its number of outlets, closing down 12 Blokker stores in 2018 and a further 78 in 2019. The company instead focused on its e-commerce platform.

COMPETITIVE LANDSCAPE

Action continues to lead variety stores in 2019

Action Belgium BVBA continued to lead variety stores in 2019, gaining value share as it opened an additional five stores. Action’s primary focus is on offering consumers the lowest possible prices.

Blokker’s struggles for clear positioning in Belgium lead to the chain’s exit

Towards the end of the review period, Blokker Nederland BV sold its other non-grocery chains – Intertoys, Maxi Toys, discounter Big Bazar, furniture chain store Leen Bakker and Asian goods importer Xenos. The company turned its focus entirely on its namesake brand and launched an e-commerce platform in 2017.

Towards a more consolidated competitive landscape

The ongoing expansion of Action, and to a lesser extent Flying Tiger Copenhagen, is likely to result in these two retailers gaining share over the forecast period. At the same time, Blokker’s exit from Belgium will be to the benefit of Action and Flying Tiger Copenhagen's sales.

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