Variety Stores in Turkey

2020 IMPACT

Already declining variety stores sees extra pressure from COVID-19, due to less frequent consumer shopping

Variety stores is another category seeing rather steep declines in 2020. However, this is not simply attributed to the impacts of COVID-19, as variety stores was already on a downwards spiral before the pandemic hit.

E-commerce also continues to cannibalise variety stores

Internet retailing is another factor for the negative performance seen in variety stores and this is, again, a trend which was noted pre-COVID-19. The event of the pandemic has simply enhanced this trend and, again, places heavier pressure on an already weak category.

Tchibo Turkiye remains only significant player in a small and declining channel, with no further developments expected

Tchibo Turkiye is the only significant player in variety stores, holding almost all value shares, with only a small percentage attributed to independent players under “others”. Tchibo is the only chained variety store which offers an extensive product portfolio, including clothing and kitchenware.

RECOVERY AND OPPORTUNITIES

Slower growth expected after 2021-2022 bounce back, with ongoing challenges and restrictions expected

Value growth in variety stores is expected to bounce back in 2021-2022, as consumers enjoy a brief time of excitement and spontaneity once allowed out and about freely again, before dropping back down to slower growth over the forecast period. Overall, the growth potential of variety stores remains limited due to the very format of such establishments, which limits their appeal to a wider consumer audience.

E-commerce will continue to cannibalise variety stores, with only Tchibo surviving

The main challenge to variety stores will continue to be (and increasingly so) the higher penetration of online channels which are able to offer wider ranges of specialised products for cheaper prices and higher levels of convenience and comparison. This will continue to drive a decline in outlets over the forecast period, as the smaller players drop out through being able to compete.

Further competition from specialist retailers, with wider ranges and greater in-store optimisation

Variety stores also faces competition from specialist retailers, who offer a wider assortment of specialised products. Additionally, as consumers become less enthusiastic about in-store shopping, it is increasingly likely that they will prefer to visit stores which offer wider selections, as opposed to visiting multiple stores to find everything they need.