Based on the trend that the gap between smaller and larger supermarket chains has been opening up, the five strong players in the corporate food retail sector (Sklavenitis, AB Vasilopoulos, My Market, Masoutis and Lidl which control over 75% of total turnover) are stepping up their efforts to reach even higher scores, taking advantage of the emerging positive circumstances.


Wednesday, February 6, 2019


 

The turnover pick-up in the industry recorded in 2017 (an increase of 1.6% for the first time in several years) seems to have continued in 2018, as the first figures confirm the companies’ appraisals of an increase of 2.5-3% in revenue .

The “weapons” along this tough war are pretty much the same as in previous years, but the belief of all players is optimistic on the conditions for further growth in 2019. This is because the sales increase is seen as a result of real consumption and not a result of revaluations. This substantial change is not cost-free, as it is fueled by offers, a practice that will be more intensive this year, as consumers are going away from those who are attempting to revise the promotions issue by lowering the bar.

Expansion of the network will be another weapon, either through new stores or through acquisitions, while extensive renovation projects at existing outlets will also be a major contribution. Overall, it is estimated that the "big 5" will have investments this year that will exceed € 300 million.

Sklavenitis

Having being a true leader well beyond the competition, the group’s turnover at a consolidated level is estimated to have exceeded €3 billion in 2018, with sales performance of the Greek company Sklavenitis, in 2018 amounting to € 2.4 billion against € 2,05 billion in 2017 of the then two companies, the EJN and I & S Sklavenitis, before their merger. At the group level, Skalvenitis encompasses in 2018 the activities of The Mart (70% ownership) and Halkiadakis (60% ownership). The investment plan of 2019 includes investments of € 75 million, which will be streamlined to the completion of the renovation of the last 100 branches of the former Marinopoulos network in Greece and Cyprus. The plan also includes the creation of an e-shop (late 2019) with the creation of different delivery centers.

AB Vassilopoulos

The chain is estimated to have achieved a revenue of more than € 2 billion, while the profitability was also high in 2018. The goal of the management lies in achieving the retention of at minimum 40% of the 2016 benefit from the inactive Marinopoulos, which translates to a turnover of €80 million, while AB Vassilopoulos carries on its penetration the densely populated areas of Athens to claim an additional turnover of around € 250 million against the convenience stores market.

Metro

For 2019 the investment plan of Metro AEBE of the Panteliades family will amount to € 40 millions as according to the plan is the opening of eight new stores throughout Greece in combination with extensive renovation plans at Mymarket and its distribution centers. By the end of the year 2019, the first wholesale store in Limassol, Cyprus, is expected to be inaugurated. 2018 was an important year, as the three-year consolidation plan with the former Veropoulos chain was successfully completed. In 2018, consolidated sales reached € 1.2 billion, an increase of about 1.5% compared to 2017.

Masoutis

A new round of investment amounting to € 25 million and 15 new stores is planned by the chain, which is also being developed in Attica through the acquisition of the Promitheftiki chain. Its turnover amounted to approximately € 720 million euros in 2018 from €761 million in 2017 without counting the Promitheftiki stores. The target is to reach a turnover of € 1 billion in 2020.

Lidl

Growth by year 2018 end, is the conclusion according to received information. Lidl Hellas’ total investment for the year 2019 is estimated to exceed € 120 million and will include the opening of five new stores, the complete renovation and expansion of seven existing ones, the completion of the bakery installation plan in all the stores of the chain as well as the expansion and enlargement of its warehouses.