PROSPECTS AND OPPORTUNITIES
Outlet numbers set to shrink further but current value growth should remain steady
With rising costs and the challenge from modern grocery retailers formats making it increasingly difficult for some businesses to stay afloat, the declining trend in small local grocers outlet numbers is expected to persist throughout the forecast period. The channel should still record reasonably robust growth in current value sales, however, in part because these types of stores are often the closest to the homes and workplaces of Hungarians.
Diversification efforts likely to focus on foodservice and more niche packaged foods
Small local grocers will continue to make changes to their assortments over the forecast period in a bid to boost trade, improve margins and better withstand competition from modern grocery retailers formats. In particular, more players are expected to start selling ready-to-eat food and hot beverages or expand their existing menus in these areas.
Competitive landscape expected to remain highly fragmented
The competitive landscape in small local grocers will remain one of the most fragmented in the Hungarian retail market over the forecast period, with independent businesses continuing to account for the lion’s share of total current value sales and outlet numbers. Disproportionately high fixed costs as compared to modern grocery retailers formats have historically discouraged the emergence of chained players in the channel, and this is not expected to change.
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Overview:
Understand the latest market trends and future growth opportunities for the Small Local Grocers industry in Hungary with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Small Local Grocers industry in Hungary, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Small Local Grocers in Hungary report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Small Local Grocers in Hungary?
- Which are the leading retailers in Small Local Grocers in Hungary?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How has the impact of COVID-19 and national lockdown impacted consumer demand?
- Which formats have benefited the most from stockpiling and enforced home seclusion?
- How will the wider economic impact of COVID-19 shape the retail landscape in the future?
- Where is future growth expected to be most dynamic?
Small Local Grocers in Hungary - Category analysis
KEY DATA FINDINGS
Outlet numbers continue to decline amidst mounting cost and competitive pressures
All Norbi Update outlets close as franchise owner goes into liquidation
Falling revenues from tobacco sales prompt strategic changes
Outlet numbers set to shrink further but current value growth should remain steady
Diversification efforts likely to focus on foodservice and more niche packaged foods
Competitive landscape expected to remain highly fragmented
Retail in Hungary - Industry Overview
Retail in 2024: The big picture
Special retail tax continues to take a toll on large multinational chains
Sustainability concerns remain influential as new deposit return scheme is launched
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Black Friday
Christmas
Back-to-school
DISCLAIMER
Small Local Grocers
Small local grocers are mostly independent retail outlets (with a selling space of under 400 square metres), kiosks, market stalls or street vendors, owned by families and/or run on an individual basis, and with a primary focus on selling food/beverages/tobacco and other groceries. Small local grocers also includes ethnic grocery stores that specialize in foreign brands and food types, health food stores, confectioners/newsagents/tobacconists (CTNs), food & drink souvenir stores, legally registered mobile shops that are run out of a truck, and regional specialty stores. Retail sales from farmers markets, farms, vineyards, or similar producers are also included in small local grocers. Outlets located within wet markets in Southeast Asia (often located in government-owned multi-story buildings) should be counted as separate outlets.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Small Local Grocers research and analysis database.
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