Market Report 2022

Colliers Market Report 2022

69

Hotel Industrial/logistics Retail Residential Of f ice

Number of supermarket and low-budget stores is dropping but competition continues to intensify

Clash of the Titans: Shopping options and competition

The grocery sector, including supermar kets and low-budget chains, has not had to rely on relief packages, etc., as this sec tor has reported record sales despite COVID-19 lockdowns in other segments of the retail sector. Among brick-and-mortar supermarket stores, the struggle is grow ing increasingly fierce as market play ers are expanding in size. Because of the increased competition, demand has wea kened for secondary or tertiary locations, as the short proximity to competing stores in prime locations is no longer perceived an impediment to attracting customers. The number of supermarket stores has dropped, but meanwhile the aggregate retail area has increased. This is mainly because several market players, includ ing Salling Group, have decided to pre fer large retail units with a large catch ment area. However, densely populated areas remain a sought-after commo dity irrespective of the shops’ competi tive situation. With shops situated clo ser apart, competition has flared up in the low-budget and supermarket seg ment where hybrid stores like Bilka have proved the most resistant when location is not a weighty parameter. Such stores often offer a one-stop-shop experience, making it possible for customers to shop a wider range of conventional groceries and shopping goods in one go.

1,200

1,000

800

600

400

200

0

15 05 COOP Salling Group Grocery store chain Grocers 10

21

Note: The figures reflect accumulated number of shop units across categories, not to be confused with isolated market share or similar, years 2005-2021. Source: Retail Institute Scandinavia

Average supermarket unit size increasing in step with the number of supermarkets being reduced

1,550

1,450

1,350

1,250

1,150

1,050

950

850

95 85 No. supermarkets

05

10

15

21

Retail area (’000 sq m)

Note: Years 1985-2021 . Source: Retail Institute Scandinavia