Variety Stores in the Netherlands

2020 IMPACT

Variety stores recoup lost sales in the latter half of 2020

Variety stores were initially impacted by lockdown as many closed their doors for several weeks. Later in the year, many managed to recover, however, as they appealed to price-conscious consumers whose budgets were constrained as a result of the pandemic.

Lead player Action records its best-ever performance, dominating the category

Action Non-Food remained the dominant player in variety stores in 2020, recouping much of its lost sales in the second half of the year, gaining share at the expense of all its competitors and recording its strongest ever growth. This brand benefits from a very low-cost concept, similar to discounters in modern grocery retailers.

Outlets decline as e-commerce grows in 2020

Variety stores continued to see a decline in outlet numbers in 2020, although there were distinctly divergent fortunes across the channel, with mid-priced retailers suffering the most. Many players struggled to achieve growth as their target demographics are no longer attracted by the large selection of mid-range products.

RECOVERY AND OPPORTUNITIES

Outlets will decline as e-commerce grows, but variety stores can grab share from other retailers

Variety stores is expected to continue to see a decline in outlet numbers over the forecast period, which will have a knock-on effect on current value sales. More consolidation is also expected, due to the potential bankruptcy of companies that do not create a clear positioning, with solid targeting towards specific consumer demographics.

Blokker Nederland set to focus on budget brand Big Bazar

Blokker Nederland’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. After a period of dwindling sales and a struggle with profitability, Blokker hopes to increase its value sales once more and become profitable over the forecast period.

High-end niche players will enjoy increasing presence

Further confirming the increasing polarisation in variety stores in the Netherlands and the hollowing-out of traditional mid-priced products, niche players that can offer consumers products perceived as distinctive or of higher quality will also see success. Flying Tiger Copenhagen, a Denmark-based variety store chain that established a rapidly growing presence in the Netherlands over the review period, will expand its carefully executed franchising model.