Variety stores were pulled in differing directions in the pandemic due to changes in consumers’ spending patterns. These changes were most strongly apparent in Q2 of 2020 with more consumers seeking cleaning products and outdoor items for their domestic summer holidays.
Smaller variety stores by selling space (such as Flying Tiger Copenhagen, Nille, and Søstrenes Grenes) experienced most of the negative impact from the pandemic in 2020. Since many of these retailers are often located in shopping malls, they suffered from a reduced footfall in shopping malls between March–May 2020, as consumers avoided these locations due to fear of transmission of COVID-19.
The second ranked brand in variety stores in Norway, Nille, used the first year of the pandemic to discontinue its unprofitable outlets. In recent years Nille has suffered from “over-establishment”, meaning too many outlets too close to each other.
Variety stores will return to low stable current retail value growth in 2022, that will continue at a gradually decelerating rate for the remainder of the forecast period. In terms of sites/outlets, growth is set to remain low and gradually slow over the forecast period.
E-commerce will not pose a significant threat to variety stores in the forecast period with the in-store experience remaining a vital part of the channel’s success. Variety stores also tend to be easily accessible due to their locations, and benefit from vast networks with attractive pricing and seasonal offerings.
Over the forecast period, unique seasonal offerings will remain the main competitive advantage of variety stores against other channels. Big variety stores (by selling space) already tend to have a section dedicated to this and will continue to improve their offerings (with higher quality products) whilst retailing them at a discount.
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Understand the latest market trends and future growth opportunities for the Variety Stores industry in Norway with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories. Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories, although they may also sell grocery items. Includes fixed-price stores (e.g. dollar stores) and catalogue showrooms. Example brands include Dollar General, Woolworth (Germany), and Miniso.See All of Our Definitions
This report originates from Passport, our Variety Stores research and analysis database.
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