BUSINESS

Supermarket sector is to see fierce competition this year

DIMITRA MANIFAVA

TAGS: Economy, Business

The supermarket sector anticipates a year of developments in 2020, after fierce competition in 2019 that saw turnover rise 3.2 percent from 2018.

The dust in the domain has settled after the restructuring that took place between 2016 and last year, with Marinopoulos’ absorption by Sklavenitis, the merger of MyMarket with Veropoulos, and the buyout of Promitheftiki by Masoutis. At the same time the macroeconomic conditions are viewed as smoother and safer for conclusions and for business decisions to be made without the pressure that extraordinary conditions bring about.

Sklavenitis, MyMarket and Masoutis are unlikely to proceed with any new acquisitions, as they are still trying to return to normal operations after the aforementioned mergers. Meanwhile AB Vassilopoulos is seeking ways to enhance its turnover – as it has seen losses since 2017 – and profit margins, which are under pressure due to the strong competition. It is no coincidence that this is a chain that has been at the focus of rumors and speculation regarding the implementation of a major acquisition.

According to a sector survey by Stochasis business consultants, seen by Kathimerini, the total size of the supermarket chain sector amounted to an estimated 12.36 billion euros in 2019, up 3.2 percent from 11.98 billion in 2018. This has taken the market back to 2010 levels for the first time since the outbreak of the financial crisis. In the medium term, the market is projected to grow at an annual rate of 3.5 percent from 2020 to 2022, reaching 13.69 billion in 2022.

“Competition in the sector is strong and is located among the existing companies in their efforts to increase their market share. The current conditions have been formed after the consolidation in the market and the rationalization of chain networks,” notes Vassilis Regouzas, chairman and chief executive of Stochasis.

Online