Variety Stores in Egypt

PROSPECTS

Variety stores channel sees growth wane as competition increases

The variety stores channel saw a weaker performance in 2019 compared with the previous year. The channel used to be popular, offering products at very competitive prices.

Chinese products offer low prices, but quality is a concern for consumers

Trade imports from China have increased, and stores are filled with products of Chinese origin following an influx of Chinese goods, as Egypt looks to improve trade relations with China. 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 a weaker Egyptian pound.

Variety stores offer courses in effort to diversify and tackle increasing competition

Some variety stores in Egypt now offer services that allow the channel to realise additional revenue. Such services feature various courses and training programmes such as tailoring and painting.

COMPETITIVE LANDSCAPE

Leaders maintain positions in fragmented environment, but Grupo Sanborns erodes their shares

Dalaa El Banat, operated by Set El Kol Co, continued to lead the variety stores channel in 2019, despite seeing a slight value share decline. Dalaa El Banat has the highest number of outlets across Egypt.

Mini So event attracts attention, further investments expected

14 November 2019 saw the Mini So x Marvel store opened in Cairo Festival Shopping Center. Marvel fans queued outside the store on the day of opening, with local celebrities and social media influencers participating in the Mini So x Marvel co-branded event.

Nature of variety stores results in scattering of outlets

Overall the variety stores channel remained a highly fragmented in 2019, with a high number of outlets. These are small in size, with the presence of several famous chains.

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