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Hypermarkets and Supermarkets: latest trends and strategies explained

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Topics under Supermarket and Hypermarket

Global Supermarket & Hypermarket Industry

Global supermarket food products sales are predicted to generate revenue in excess of $1.70 trillion by 2015, according to research from Global Industry Analysts. Market growth has been driven by the rising importance of consumerism. Since supermarkets first appeared in the US, they have been rolled out all over the globe, with supermarket chains securing their place at the top of the world’s retail chain. Due to the effects of the economic recession, the number of consumer visits to supermarkets has fallen over recent years. However, average spends-per-visit have risen due to a trend that has seen consumers shy away from dining out in restaurants in favor of purchasing prepared food in supermarkets to eat at home.

The global hypermarket industry has witnessed changes in recent years. Faced with the obstacle of stricter legislation on expansion, superstore retailers have sought different formats, using in-store services, downsizing stores, and promoting click and collect services. This has lead to a new approach to large format grocery stores, encouraging business to diversifying in terms of the services offered to consumers, reports Verdict. While the traditional hypermarket format is losing popularity in established markets, the big-box format has yet to reach its growth potential in emerging markets.

Trends

Consumers have cut down drastically on eating out due to the budgetary restrictions imposed by the economic recession. The rise in home cooking has lead to huge demand for packaged and semi-prepared food products sold by supermarkets, reports Global Industry Analysts. This new budget inspired interest in cooking has lead to increased sales in various food categories including meat, fresh fruit and vegetables, condiments, dressings, food flavors, oils, spices and sauces. In response to this trend toward home cooking, supermarkets are pushing cheaper private labeled brands to attract consumers and promote loyalty.

Regional Market Share

Asia-Pacific promises strong supermarket industry growth, in countries such as India, China, Indonesia and South Korea, reports Global Industry Analysts. The discount supermarket market is representing an increasingly important segment within the supermarket sector. With consumers eager to cut down on spending, discount supermarkets have become particularly popular over recent years due to the economic recession.

The Chinese supermarket industry provides consumers with a wide range of food and dairy products. Domestic manufacturers provide the majority of products sold by supermarkets and hypermarkets to the general public, reports IBIS World.

In France, Verdict underlines the success of Auchan's Chronodrive click and collect model. This service gives customers the possibility to choose the goods they want online and then dictate when they will collect them from the Chronodrive warehouse. The service fares well due to convenience and reduced delivery costs. Carrefour continues to venture into non-food categories to increase revenue. Health and beauty, for example, have been expanded by 40%. Carrefour has started offering complementary services including hairdressing. The home department, on the other hand, has shrunk 15%.

There are almost 1,300 Kmart stores operating in the US, reports Verdict. More than 75% of these stores offer consumers the convenience of an in-store pharmacy to complement the health and beauty category. Catering to the specific needs of consumers, the pharmacies offer a seasonal walk-in clinic, which is particularly popular in flu season. Trained nurses can administer vaccinations on site.

Industry Leaders

The leading players currently operating in the global supermarket and hypermarket industry include: Edeka, Brazil’s Cencosud, Coles, Tesco, Woolworths, Auchan, Wal-Mart, Canada’s Loblaws’s, Casino, SUPERVALU, Kroger, Costco, Intermarché, Carrefour, Aeon, Rewe, Sears, Sainsbury's, Target, E Leclerc, Aldi Deutscher, Royal Ahold, Tengelmann Warenhandelsgesellschaft, and Safeway.

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Parent industry: Retail
Related industries: Department Store, Discount Store, Catalog and Mail Order, Specialty Store, Food Retailing, Wholesaling, E-Commerce

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