REGION: Grocery sales growth to accelerate in Central Europe - PMR | Progresiv
The grocery market in Central Europe is expected to witness accelerated growth over the next few years, after years of stagnating or marginal increases. The forecast, part of a new report by PMR, also expects growth across all markets in the region, although with significant variance. The growth is expected to be driven mainly by Poland (the largest regional market) and Bulgaria, which will see the fastest value gains in the region. 
PMR said the regional market will see hypermarkets declining in popularity in the near future, with smaller stores (mainly c-stores and discounters) reaping the benefits. This trend will be stronger in some countries (Czech Republic, Hungary) compared to others (Slovakia, Romania), but will generally affect all the players active in this channel. Discounters in these markets have already gained significant market share, but convenience retailers have just started to develop. However, PMR says the convenience channel has huge growth prospects because it requires relatively small spaces and low initial investments, which makes it perfect for development through franchising. Moreover, convenience stores can expand to rural areas, which will help in countries such as Poland and Romania, where a significant proportion of citizens live in such areas.
Additionally, online sales are expected to develop very rapidly, as the number of online stores that offer grocery items is increasing and due to the entry of the largest players in this channel. PMR expects the market’s growth in the next few years to be driven by the top grocers launching online stores, as well as increasing their range.
The report also noted that one factor that could limit the growth potential of some markets is government influence, which has already affected the Hungarian retail industry and may see the new Polish government also implement new regulations. (www.kamcity.com)
