Food Retailing - Europe

Food Retailing - Europe

Mintel European Retail Intelligence provides independent, expert coverage of the major retail sectors throughout Europe. Each title in this series analyses retailing trends in up to 19 European markets, including the Scandinavian nations and Eastern European countries such as the Czech Republic and Poland as well as the major Western European markets.

The coverage provided by each report is as accurate, relevant and up-to-date as possible, combining in-house sector expertise with retailer performance data, taken directly from industry and trade sources.

With titles ranging from 'DIY Retailing in Europe' through to 'Food Retailing in Europe', each market examination includes studies of:

• background economic and demographic data
  
  
• market sizes
  
  
• regional retailing trends and issues
  
  
• market drivers
  
  
• consumer expenditure
  
  
• consumer trends
  
  
• leading pan-European retailers
  
  
• domestic retailers
  
  
• market forecasts

Insights and Opportunities

Hypermarkets losing their appeal

Ageing consumers

Price and promotions

Market in Brief

The future

Spending on food

The consumer

Leading retailers

European Summary and Outlook

Report Scope

Report structure and content

Food retailing sector

Store definitions

Buying groups, voluntary groups and co-operatives

Technical notes

Definitions

Currencies

Figure 1: Exchange rates: National currencies against the Euro, 2002-06

Country codes

VAT

Figure 2: Europe: Standard VAT rates, 2006

Other abbreviations

The European Food Market

Figure 3: Europe: Total spending on food, alcohol and tobacco by country, 2006

Figure 4: Europe: Per capita spending on food, alcohol and tobacco, 2006

Figure 5: Europe: Growth in consumer spending on food, alcohol and tobacco, %, 2002-06

European food sector size and forecast

Sales value and trends

Figure 6: Europe: All food retailers’ sales by country, 2006

Figure 7: Europe: Growth in food retailers sales by country, %, 2002-06

Figure 8: Europe: Food retailers’ share of total retail sales by country, %, 2006

Leading European markets

Figure 9: Europe: All food retailers sales by country, % of European total, 2006

Sector concentration

Figure 10: Europe: Leading retailers’ share of all food retailers’ sales, by country, 2006

Figure 11: Europe: Top 5 retailers’ share of all food retailers’ sales, by country, 2006

E-commerce

Key Points

Figure 12: Leading retailers food e-commerce operations, 2007

The European consumer

Where people shop

Factors influencing where people shop

Figure 13: France, Germany, Italy, Spain: Factors most important when choosing where to shop for food, June 2007

Top four motivators by country

Figure 14: France, Germany, Italy and Spain: Top four motivators when choosing where to shop for food, June 2007

Convenience is king

The draw of low prices

Non-foods have limited impact

Ageing population - what impact

Retail competitor analysis

Sales performance

Figure 15: Europe: Leading food retailers, estimated sales performance, 2002-06

European market shares

Market shares 2006

Figure 16: Food retailers market share of all food retail sales in Europe, 2006

Market share changes

Figure 17: Percentage change in European market share, 2005-06

Outlook and Forecast

Food to marginally win share of European retail sales

Figure 18: Europe: All food retailers sales, 2002-12

Growth by country

Relative performance

Figure 19: Europe: Forecast percentage point change in food retailers’ share of all retail sales, 2007-12

Actual performance

Figure 20: Europe: Food retailers’ sales growth by country, 2007-12

Trends and Issues

Corporate activity

Deals

Figure 21: Europe: Food retail - Major corporate activity 2006/07

Rumours

Retailer outlook

Figure 22: Evaluation of major food retailers’ prospects

Future trends

Austria

Market in Brief

The future

Market size and performance

The competitive landscape

Broader Market Environment

Expanding but ageing population

Figure 23: Austria: Population trends, 2002-07

Figure 24: Austria: Population, by age group and gender, 2007

Solid economy

Figure 25: Austria: Gross domestic product, 1996-2006

Inflation

Figure 26: Austria: Consumer prices, annual % change, 2000-06

The Market in Context

Key findings

Figure 27: Austria: Consumer expenditure, 1996-2006

Figure 28: Austria: Consumer expenditure on food, alcohol & tobacco, 2002-06

Sector Size and Forecast

Future

Past

Economic outlook

Retail sector - healthy outlook

Retail sales forecast

Figure 29: Austria: Food retailers’ sales, 2002-12

Past

Figure 30: Austria: Food retailers’ sales, 2002-06

Grocery enterprises and outlets

Figure 31: Austria: Food retailers’ sales and outlet development, 2000-05

Figure 32: Austria: Food retailers’ outlet development, 2001-05

Retail Competitor Analysis

Figure 33: Austria: Leading grocers, 2006

Market shares

Figure 34: Austria: Leading grocery retailers’ share of all food retailers’ sales, 2006

Evaluation

Figure 35: Austria: Selected food retailers, evaluation, 2006/07

Belgium

Market in Brief

The future

Market size and performance

Market leaders

Broader Market Environment

Population

Figure 36: Belgium: Total population, 2001-06

Economy

GDP

Figure 37: Belgium: Percentage change in GDP, at current and constant prices, 2002-06

Figure 38: Belgium: Gross domestic product, 1996-2006

Inflation

Figure 39: Belgium: Consumer prices, 2002-06

Figure 40: Belgium: Consumer prices for food, beverages and tobacco, 2001-05

Consumer expenditure

Figure 41: Belgium: Consumer expenditure 1996-2006

Figure 42: Belgium: Detailed breakdown of consumer expenditure, 2002-06

The Market in Context

Figure 43: Consumer spending on selected goods and service areas, 2002-06

Spending - a change of destination

Figure 44: Consumer spending on food, beverages and tobacco as a proportion of all spending, 2002-06

Figure 45: Belgium: Total consumer spending on food, beverages and tobacco, 2002-06

Figure 46: Belgium: Consumer expenditure per capita on food, beverages and tobacco, 2002-06

Sector Size and Forecast

Future

Past

Food retail sales

Figure 47: Belgium: Food retail sales, 2002-12

Figure 48: Belgium: Food retail sales as % of all retail sales, 2002-12

Figure 49: Belgium: Relative increases in retail sales of food products, 2002-06

Food retail outlet data

Figure 50: Belgium: Food retail outlets by type, 1999-2005

Figure 51: Belgium: Comparison of share of outlet numbers and food retail sales by outlet type, 2005

Retail Competitor Analysis

Positive early signs for Carrefour

But the Lion is close to catching its prey

Discount players make their mark

Figure 52: Belgium: Leading food retailers, 2006

Market shares

Figure 53: Belgium: Market share of top five food retailers, 2006

Evaluation

Figure 54: Belgium: Food retailers, evaluation, 2006

Czech Republic

Market in Brief

The future

Market performance

Sector performance and structure

Broader Market Environment

Stagnating population

Figure 55: Czech Republic: Population trends, 2002-06

Figure 56: Czech Republic: Population, by age group and gender, 2006

Smaller households

Figure 57: Czech Republic: Households, 1991 and 2001

The economy, good thus far….

Figure 58: Czech Republic: Gross domestic product, 1997-2006

…. but political deadlock increases uncertainty

Consumer prices

Figure 59: Czech Republic: Consumer prices, 1998-2006

The Market in Context

Key findings

Consumer spending picks up

Figure 60: Czech Republic: Consumer expenditure, 1995-2006

But food lags behind

Figure 61: Czech Republic: Detailed breakdown of final consumption expenditure, 2001-05

Inflation on select products

Figure 62: Czech Republic: Consumer price index on selected products, 2002-06

Spending on food, drink and tobacco

Figure 63: Czech Republic: Food and drinks spending 2001-05

Sector Size and Forecast

Future

Past

Economic outlook

Food retailers’ prospects

Retail sales forecasts

Figure 64: Czech Republic: Food retailers’ sales, 2002-12

Figure 65: Czech Republic: Food retailers as % all retail sales, 2002-12

Past

Sector sales trends

Figure 66: Czech Republic: Retail sales, 2002-06

Enterprise numbers

Figure 67: Czech Republic: Select retail enterprise numbers, 2002-05

Retail Competitor Analysis

Market leaders jostle for position

Advancing…

…and retreating

Figure 68: Czech Republic: Major food, drink and tobacco retailers, 2006

Market shares

Figure 69: Czech Republic: Top six food retailers' market share, 2006

Evaluation

Figure 70: Leading food retailers, evaluation, 2006

Denmark

Market in Brief

The future

Market size and performance

The competitive landscape

Broader Market Environment

Smaller households, ageing population

Figure 71: Denmark: Population trends, 2003-07

Eating habits

Figure 72: Denmark: Turnover of organic foods in retail stores, 2003-06

Economy

Figure 73: Denmark: Gross domestic product, 1995-2006

Low inflation and unemployment

Figure 74: Denmark: Consumer prices, 2002-06

Figure 75: Denmark: Unemployed as % of labour force, 2002-September 2007

Planning regulations

The Market in Context

Robust growth in all spending

Figure 76: Denmark: Consumer expenditure, 1995-2006

Food inflation low

Figure 77: Denmark: Consumer price inflation, selected goods, 2002-06

Food loses in boom

Figure 78: Denmark: Index of consumer expenditure, selected goods, 2002-06

Figure 79: Denmark: Consumer expenditure on selected categories, 2002-06

Sector Size and Forecast

Future

Past

Economic outlook

Retailers’ prospects

Figure 80: Denmark: Food retailers' sales, 2002-12

Figure 81: Denmark: Food retailers' sales as % of all retail sales, 2002-12

Past

Figure 82: Denmark: Food, beverages & tobacco retailers' sales by type of retailer, 2002-06

Enterprise and outlet data

Figure 83: Denmark: Food retail businesses, 2002-06

Retail Competitor Analysis

Share of the market

Specialists

Figure 84: Denmark: Leading food retailers, 2006/07

Market shares

Figure 85: Denmark: Top five food retailers' market shares, 2006/07

Evaluation

Figure 86: Denmark: Food retailers, evaluation, 2006/07

Finland

Market in Brief

The future

Sector size and performance

The competitive landscape

Broader Market Environment

A small, greying population

Figure 87: Finland: Population trends, 2002-06

Changing eating habits

Economy on a high but set to soften

Figure 88: Finland: Gross domestic product, 1996-2006

Inflation

Figure 89: Finland: Consumer prices, 1997-2006

Unemployment

Figure 90: Finland: Unemployment, 1995-2006

Figure 91: Finland: Consumer confidence indicator, 2003-September 2007

The Market in Context

Robust consumer spending

Figure 92: Finland: Consumer expenditure, 1995-2006

Food prices on the up

Figure 93: Finland: Consumer price index, 2000-06

Surprisingly strong food

Figure 94: Finland: Index of consumer spending on selected goods, 2002-06

Figure 95: Finland: Consumer spending on food, drink and tobacco, 2002-06

Sector Size and Forecast

Future

Past

Economic outlook

Retailers’ prospects

Sector definition

Figure 96: Finland: Food retailers' sales, 2002-12

Figure 97: Finland: Food retailers' sales as % of all retail sales, 2002-12

Past

Figure 98: Finland: Food retailers' sales, 2002-06

Enterprises and outlets

Figure 99: Finland: Retail enterprise numbers, 2001-05

Figure 100: Finland: Retail outlet numbers, 2001-05

Retail Competitor Analysis

Share of the market

Specialists

Figure 101: Finland: Major food, beverages and tobacco retailers, 2006/07

Market shares

Figure 102: Finland: Top six food retailers' market shares, 2006

Evaluation

Figure 103: Finland: Food retailers, evaluation, 2006/07

France

Market in Brief

The future

Market size and performance:

Market leaders:

Consumer research:

Broader Market Environment

Population

Figure 104: France: Population trends 2003-07

Figure 105: France: Population by age, 2007

Economy

GDP

Figure 106: France: GDP, 1996-2006

Inflation

Figure 107: France: Consumer price inflation, 2001-06

Figure 108: France: Consumer price inflation on food products, 2001-06

Figure 109: France: Detailed breakdown of consumer price indices for food products, 2001-05

The Market in Context

Figure 110: France: Consumer expenditure on food, beverages and tobacco, 2002-06

Figure 111: France: Food, beverages & tobacco as proportion of all consumer spending, 2002-06

Figure 112: France: Food, beverages & tobacco as proportion of spending on consumer goods, 2002-06

Figure 113: France: Indices of relative growth of food, beverages & tobacco, 2002-06

Sector Size and Forecast

Future

Past

Figure 114: France: Retail sales 2002-12

Figure 115: France: Food retail as a % of all retail, 2002-12

Recent trends in French food retail

Figure 116: France: Breakdown of food retail sales, 2002-06

Outlet data

Figure 117: France: Retail outlets by type, 1998-2006

Figure 118: France: Average size of food retail outlets, 2000-07

The Consumer - Where They Shop

Where They Shop - Trend data

Primary shoppers - Carrefour remains the most popular destination:

Figure 119: France: Stores used for main grocery shop, June 2007

Market positioning - Primary shoppers

Figure 120: France: Market positioning of major food retailers by age and affluence, June 2007

Detailed view of Consumer Demographics - Primary shoppers:

Figure 121: France: Store used for main grocery shop, by gender, age, marital status, presence of children, size of household, working status and income, June 2007

Figure 122: France: Other store used for main grocery shop, by gender, age, marital status, presence of children, size of household, working status and income, June 2007

Secondary shoppers - Hard discounters far more appealing

Figure 123: France: Stores used for secondary grocery shop, June 2007

Detailed view of Consumer Demographics - Secondary Shoppers:

Figure 124: France: Stores used for other grocery shopping, by gender, age, presence of children, working status and income, June 2007

Figure 125: France: Stores used for other grocery shopping, by gender, age, presence of children, working status and income, June 2007

The Consumer - Factors Important in Deciding Where to Shop

Location, location, location

Figure 126: France: Factors most important when choosing where to shop for food, June 2007

Helping the affluent

Figure 127: France: Factors behind choice of food retailer by age and affluence, June 2007

Detailed view of Consumer Demographics - factors important in deciding where to shop

Figure 128: France: Factors most important when choosing where to shop for food, June 2007

Figure 129: France: Factors most important when choosing where to shop for food, June 2007

Retail Competitor Analysis

Carrefour still dominates

Voluntary groups very important

Discounting: the way to the French consumer’s pocket

Leading players

Figure 130: Leading players in the food sector, 2006

Market shares

Figure 131: France: Market share of leading players, 2006

Evaluation

Figure 132: France: Food retailers, evaluation, 2006/07

Germany

Market in Brief

The future

Market performance

Sector performance and structure

Market leaders and corporate activity

Consumer behaviour

Broader Market Environment

Ageing population

Figure 133: Germany: Population trends, 2002-06

Figure 134: Germany: Population, by age group, 2002, 2006 and 2010

Smaller household

Figure 135: Germany: Households, 2003-05

Economy looking brighter, at last

Figure 136: Germany: Gross domestic product, 1995-2006

Inflation

Figure 137: Germany: Consumer prices, 2002-06

The Market in Context

Key findings

Subdued consumer spending

Figure 138: Germany: Household consumer expenditure, 1995-2006

Mixed spending trends

Figure 139: Germany: Consumer spending on selected categories, 2002-06

Next to no inflation

Figure 140: Germany: Consumer price index on selected products, 2000-06

Food and drink

Figure 141: Germany: Food, drink and tobacco spending, 2002-06

Figure 142: Germany: Food and drinks spending - indexed growth, 2002-06

Figure 143: Germany: Food and drinks consumer prices, 2000-06

Eating out

Figure 144: Germany: Spending on food and eating out, 2002-06

Figure 145: Germany: Spending on food and drink relative to spending on eating out, 2002-06

Sector Size and Forecast

Future

Past

Economic outlook

Consumer outlook

The status quo

Discounters will continue to dominate

Mainstream players are constrained

While discounters are adapting

Further corporate activity

Retail sales forecasts

Figure 146: Germany: Retail sales, 2002-12

Figure 147: Germany: Food retailers as % all retail sales, 2002-12

Past - food retailers hold up well

Figure 148: Germany: Index of all retail sales and food retailers’ sales, 2002-06

Multiples’ squeeze on independents slows

Figure 149: Germany: Food, drink & tobacco retailers’ sales by store type, 2002-06

Figure 150: Germany: Food, drink & tobacco retailers - Number of enterprises, 1997-2001 and outlets, 1999 and 2000

Discounters thrive

Figure 151: Germany: Food retailers sales by store type, 1993-2000 and 2003-05

Figure 152: Germany: Number of food retailers outlets by store type, 1993-2000 and 2003-05

The Consumer - Where They Shop

Where they shop - primary shoppers

Figure 153: Germany: Store used for main grocery shop, June 2007

Market positioning - primary shoppers

Figure 154: Germany: Market positioning of supermarkets’ primary shoppers by age and income, June 2007

Who buys where - primary shoppers

The appeal of discounters

Figure 155: Germany: Discount stores used for main grocery shop, by gender, age, marital status, presence of children, size of household, working status and income, June 2007

Figure 156: Germany: Other stores used for main grocery shop, by gender, age, marital status, presence of children, size of household, working status and income, June 2007

Where they shop - secondary shoppers

Figure 157: Germany: Other shops used for grocery shopping in the last three months, June 2007

Who buys where - secondary shoppers

Figure 158: Germany: Discount stores used for other grocery shopping, by gender, age, presence of children, working status and income, June 2007

Figure 159: Germany: other stores used for other grocery shopping, by gender, age, presence of children, working status and income, June 2007

The Consumer - Factors Important in Deciding Where to Shop

Convenience is critical

Non-foods have limited appeal

Just give me low prices

Figure 160: Germany: Factors most important when choosing where to shop for food, June 2007

Who is motivated by what

Men like convenience

Older people like promotions

The wealthiest are most motivated by low prices

Time is money

Figure 161: Germany: Factors most important when choosing where to shop for food, June 2007

Figure 162: Germany: Factors most important when choosing where to shop for food, June 2007

Retail Competitor Analysis

Discount format dominates

Hypermarkets losing momentum

Corporate activity leads to further consolidation

Figure 163: Germany: Leading food retailers, 2006

Market shares

Figure 164: Germany: Leading food retailers market shares, 2006

Evaluation

Greece

Market in Brief

The future

Market size and performance

Market leaders

Broader Market Environment

Population

Figure 165: Greece: Population by gender, 2002-06

Economy

GDP

Figure 166: Greece: Gross domestic product, 2000-06

Unemployment

Inflation

Figure 167: Greece: Consumer prices, 2002-06

Figure 168: Greece: Consumer Price Indices, 1999-2007

The Market in Context

Key findings:

Figure 169: Greece: Consumer expenditure, 2000-06

Figure 170: Greece: Detailed breakdown of consumer expenditure for food, tobacco and beverages, 2002-06

Figure 171: Greece: Spending on food, beverages and tobacco as proportion of all consumer spending, 2002-06

Sector Size and Forecast

Future

Past

Food retail

Figure 172: Greece: Food retail sales, 2002-12

Figure 173: Greece: Food retail as a proportion of all retail sales, 2002-12

Figure 174: Greece: Relative growth of retail sectors, 1995-2006

Food retail enterprise data

Figure 175: Greece: Food enterprise numbers, 2001-05

Figure 176: Greece: Food retail outlet numbers and average size, 2002

Retail Competitor Analysis

Carrefour leads the pack

Lidl and the discounters emerge

Sector remains fragmented

Leading players

Figure 177: Greece: Leading players in the food sector, 2006

Market shares

Figure 178: Greece: Market share of leading players in food sector, 2006

Evaluation

Figure 1795: Greece: Food retailers, evaluation, 2006/07

Hungary

Market in Brief

The future

Market performance

Sector performance and structure

Market leaders

Broader Market Environment

The population is slowly declining…

Figure 180: Hungary: Population trends, 2003-07

... and ageing

Figure 181: Hungary: Population, by age group and sex, 2003-07

A strong economy

Figure 182: Hungary: Gross domestic product, 1996-2006

Inflation is lower but still not under control

Figure 183: Hungary: Consumer prices, 2000-07 (e)

The Market in Context

Key findings

Consumer spending picks up in 2006

Figure 184: Hungary: Consumer expenditure, 1996-2006

Figure 185: Hungary: Consumer expenditure growth, 1997-2006

Food and drink holds up reasonably well

Figure 186: Hungary: Detailed breakdown of consumer expenditure, 2001-05

Inflation on select products

Figure 187: Hungary: Consumer price on selected products, average annual % change, 2003-06

Spending on food, drink and tobacco

Figure 188: Hungary: Food and drinks spending 2001-2005

Sector Size and Forecast

Future

Past

Economic and consumer spending outlook

More shopping centre schemes

Tesco looks dominant

Further consolidation

Lidl expanding fast

While Aldi plays catch up

Independents fighting hard

Retail sales forecasts

Figure 189: Hungary: Food retailers’ sales, 2002-12

Figure 190: Hungary: Food retailers as % all retail sales, 2002-12

Past

Sector sales and structural trends

Figure 191: Hungary: Retail sales, 2002-06

Figure 192: Hungary: Food retailers’ sales by sub-sector, 1997-2006

Outlet numbers

Figure 193: Hungary: Food retail outlet numbers, 2002-06

Retail Competitor Analysis

A Who’s Who of European food retailing

Tesco in pole position…

…and sews up the hypermarket scene

CBA has a huge network

German discounters enter in force

Figure 194: Hungary: leading food retailers, 2006

Market shares

Figure 195: Hungary: Top eight food retailers' market share, 2006

Evaluation

Figure 196: Hungary: Leading food retailers, evaluation, 2006

Republic of Ireland

Market in Brief

The future

Market size and performance

Market leaders

Broader Market Environment

Rising population

Figure: Republic of Ireland: Population by gender, 2002-06

A youthful population

Figure 197: Republic of Ireland: Population age profile, 2006

Household size in decline

Figure 198: Republic of Ireland: Household data, 1991, 2002 and 2006

Strong economy despite a slowdown

Figure 199: Republic of Ireland: Gross domestic product, 1997-2006

Inflation

Figure 200: Republic of Ireland: Consumer price inflation, 1998-2006

Relative food retail prices

Figure 201: Ireland: Food and drink price inflation in relative terms, 2001-06

The Market in Context

Spending on food, drink and tobacco in context

Figure 202: Republic of Ireland: Consumer expenditure, 2002-06

Figure 203: Republic of Ireland: Spending on food and drink as % of all consumer spending, 2002-06

Groceries versus other areas of consumer spending

Figure 204: Ireland: Relative spending changes versus some discretionary non-foods, 2001-05

Figure 205: Ireland: Relative spending changes versus housing & energy, 2002-06

Sector Size and Forecast

Future

Past