Retailers are focusing on hypermarkets
Large supermarket companies are now fighting the battle for greater market shares in hypermarkets, as contrary to forecasts that this category would suffer due to inflationary pressures, it is growing at a much higher rate than the overall growth in the sector.
It is no coincidence that the investment efforts of AB Vassilopoulos, like the other chains, are focused on large stores, in an attempt to compete with Sklavenitis. The latter has the largest hypermarket network, 33 in total, most of which, of course, it inherited from the Marinopoulos network.
After the new hypermarket opened at end-November by AB Vassilopoulos on Kifissias Avenue, in Maroussi, and the renovation of its store at Elliniko – a store that had been renovated previously a few years ago – the company proceeded with the renovation and expansion of Mega AB in Nea Erythrea. The chain decided to expand the first floor of the store and this now amounts to 4,340 square meters with an emphasis on the non-food categories (home-kitchen items, clothing and footwear, cleaning items, stationery, party items but also books and toys).
Although the store in question receives a lot of customers, since there are actually no other hypermarkets in the area, the expansion to a larger area and the widening of the categories are undoubtedly an attempt to strengthen the market share in general and in particular against Sklavenitis. The latter opened its large supermarket at the end of 2022, with a sales area of 4,700 sq.m. a few kilometers further down, also near the Athens-Lamia national road. This is also a store with a strong focus on non-food categories.
It is worth noting that in 2023 the total sales made in hypermarkets (stores over 2,500 sq.m.) constituted 11% of supermarkets’ total sales, with the turnover in this category of stores increasing by 13% compared to 2022.
Of course, the largest part of the turnover (43.5%) takes place in medium-sized stores (1,000-2,500 sq.m.), since they also make up the vast majority of supermarket stores, with the growth rate however limited to 6.9% in 2023.
Hypermarkets are gaining ground again, unlike in the financial crisis, as they became popular in the pandemic because of their larger spaces, while consumers find more offers there.
