Fung Business Intelligence Centre [email protected] New York: 646.839.7017
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May 20, 2015 Global Grocery Retailing Discounters are giving major nondiscount retailers headaches Opportunities and threats in small-store formats E-commerce is in its infancy but will prove disruptive High-growth international markets prove tough to crack DEBORAH WEINSWIG Executive Director – Head of Global Retail & Technology Fung Business Intelligence Centre [email protected] New York: 646.839.7017 May 20, 2015 Global Grocery Retailing Executive Summary ........................................................................................................................................ 3 Price: Discounters Boom ............................................................................................................................ 3 Format: Small Stores Appeal to Shoppers ................................................................................................. 3 E-Commerce: Remains in Its Infancy but Should Be Watched ................................................................... 4 HiGh-Growth MarKets: Joint Ventures Can Bolster Performance .............................................................. 4 GloBal MarKets Snap Shot .............................................................................................................................. 5 Grocery Sector Sizes and Growth Rates ..................................................................................................... 5 Levels of Concentration ............................................................................................................................. 6 The World’s BiGGest Grocery Retailers: Schwarz Jumps to #4 ................................................................... 6 GloBal Issues ................................................................................................................................................... 8 Discounters: BiG and Still GrowinG Fast ...................................................................................................... 8 How Have the Discounters Grown So Fast? ............................................................................................... 8 Proximity ShoppinG: The End of BiG Box? .................................................................................................. 9 Sector Shifts Threaten Nonfood Retail .................................................................................................... 10 Grocery E-Commerce: Disruptive Beyond Its Scale ................................................................................. 10 ClicK and Collect: Online Grocery 2.0? ..................................................................................................... 11 Joint Ventures Can Bolster Localized Propositions .................................................................................. 12 The US ........................................................................................................................................................... 13 Summary ................................................................................................................................................. 13 The Context ............................................................................................................................................. 13 The Sector ............................................................................................................................................... 14 The Issues ................................................................................................................................................ 14 The Retailers ............................................................................................................................................ 17 The UK ........................................................................................................................................................... 18 Summary ................................................................................................................................................. 18 The Context ............................................................................................................................................. 18 The Sector ............................................................................................................................................... 19 The Issues ................................................................................................................................................ 19 The Retailers ............................................................................................................................................ 23 Fung Business Intelligence Centre (FBIC) publication: Grocery Retailing report 1 Copyright © 2015 The Fung Group, All rights reserved. May 20, 2015 France ........................................................................................................................................................... 24 Summary ................................................................................................................................................. 24 The Context ............................................................................................................................................. 24 The Sector ............................................................................................................................................... 24 The Issues ................................................................................................................................................ 25 The Retailers ............................................................................................................................................ 27 Germany ....................................................................................................................................................... 28 Summary ................................................................................................................................................. 28 The Context ............................................................................................................................................. 28 The Sector ............................................................................................................................................... 29 The Issues ................................................................................................................................................ 29 The Retailers ............................................................................................................................................ 31 China ............................................................................................................................................................. 32 Summary ................................................................................................................................................. 32 The Context ............................................................................................................................................. 32 The Sector ............................................................................................................................................... 32 The Issues ................................................................................................................................................ 33 The Retailers ............................................................................................................................................ 36 Conclusions and Key TaKeaways ................................................................................................................... 37 Discounters .............................................................................................................................................. 37 Small-Store ShoppinG ............................................................................................................................... 37 E-Commerce ............................................................................................................................................. 37 Fung Business Intelligence Centre (FBIC) publication: Grocery Retailing report 2 Copyright © 2015 The Fung Group, All rights reserved. May 20, 2015 Executive Summary The simple act of puttinG dinner on the taBle Grows more complicated By the day—but in very different ways, depending on the exact location of the dinner table. The Groceries that make up the meal miGht come from a fast-growing discounter or a GraB-and-go convenience store, from a pioneerinG online retailer or a traditional supermarKet, from a domestic firm with deep Knowledge of the local marKet or an international Behemoth slowly learninG that one size does not, in fact, fit all. A customer might stocK up at discount store, maKe a stop at a traditional supermarKet, pop into a small neiGhborhood marKet for those last few fresh inGredients, or even “clicK and collect”—shop on the Internet and pick up at the hypermarKet drive-throuGh. In the ever-evolving world of Grocery retailinG, the only constant is chanGe. This report looKs in detail at the shifts affectinG five BiG national Grocery sectors—in the US, the UK, France, Germany and China. Price: Discounters Boom • Discount retailers used the opportunity created