Variety Stores in the Netherlands

PROSPECTS

Outlets and sales decline as e-commerce grows

Variety stores continued to see a current value decline in 2019, due to the decline in outlet numbers, although there were distinctly divergent fortunes across the channel, with middle-market retailers suffering the most. Many players struggled to achieve growth as their target market of mass consumers is no longer attracted by the large selection of mid-range products.

However, budget variety stores are thriving

The variety stores that are seeing growth tend to have a very specific concept, mostly based on selling a wide variety of very cheap products. Keeping costs low, these stores manage to undercut other variety stores, but importantly, also take away sales from other channels, such as supermarkets and home improvement and gardening stores.

High-end niche players enjoy an increasing presence

As further confirmation of the increasing polarisation in variety stores and the hollowing-out of the traditional middle-market segment in variety stores in the Netherlands, niche players that offer consumers products which are perceived as distinctive or higher quality are also successful. The prime example is Flying Tiger Copenhagen, a Denmark-based variety store chain that established a rapidly growing presence in the Netherlands over the review period, expanding thanks to a carefully executed franchising model.

COMPETITIVE LANDSCAPE

Action Non-Food becomes the dominant player

Action Non-Food remained the leading player variety stores in 2019, and increased its value share to become dominant thanks to the popularity of its economy retail brand Action. This brand benefits from a very low-cost concept, similar to discounters in modern grocery retailers.

Blokker Nederland set to focus on budget brand Big Bazar

Blokker Nederland remained in second place behind Action Non-Food in variety stores in value terms in 2019, despite the sale of most of its brands in 2018. The company’s aim is to adjust the strategy for its core Blokker brand by further reducing the number of outlets and focusing on those which are most successful.

Flying Tiger Copenhagen continues to see growth due to its fast-changing selection

After only entering the market in 2016, Flying Tiger Copenhagen continued to see value growth in 2019, although this was lower than in previous years of the review period due to the lack of new outlet openings. Consumers enjoy the experience of a shop with clean lines and a mix of novelty and practical products at relatively low prices.

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