Variety Stores in Egypt

PROSPECTS

Variety stores faces challenge from other retail channels

Variety stores used to be a common channel with very competitive prices in Egypt, popular for the concept of “everything is 2.5”, meaning that the price of each product in the store was EGP2.

Dominance of Chinese products in variety stores also a key concern for retailers

Given trade imports from China have increased and stores are filled with products of Chinese origin, some Egyptian goods have become non-competitive. The trade exchange between China and Egypt increased by 27% during the first nine months in 2018 as Egypt looked to improve trade relations with China; in addition to an export market, this has given preferential rates to manufacturers and importers to import supplies from China, as they switch to cheaper supplies following soaring dollar exchange rates and the weaker Egyptian pound.

Variety stores offers courses for hobbyists to compliment store products

Some variety stores in Egypt now offer services that allows the channel to make additional revenues. Services feature various courses and training programmes such as tailoring and painting.

COMPETITIVE LANDSCAPE

Dalaa El Banat leads with highest number of outlets

Dalaa El Banat, operated by Set El Kol Co, continued to lead variety stores in 2018 given it owns the highest number of outlets across Egypt. However, the brand only holds limited value share overall, as the channel is highly fragmented.

Channel remains highly fragmented

Variety stores remained a highly fragmented channel in 2018, with a high number of outlets, which are smaller in size with the presence of several famous chains. Variety stores tends to offer a wide range of products that suit all ages and consumer segments.

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