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Kantar Worldpanel: Global Hypermarket and Supermarket Market Share Shrinks as e-Commerce, Discounters and Traditional Formats Prosper
- Supermarket and hypermarket growth especially slow in the UK, South Korea and Peru
Kantar Worldpanel's - an annual report on FMCG trade channels - was published today, revealing the shrinking market share of supermarkets and hypermarket across the globe.
The share of hypermarkets and supermarkets is predicted to reduce further, to just 48% of global FMCG spend by 2021, with e-commerce set to grow to 7.5% and discounters 6.5%.
The share of grocery shopping conducted online continues to rise, particularly in the world's most advanced e-commerce markets, such as South Korea , China and the UK. In the UK, online sales grew from 6.7% to 7.3% value share in the last year alone. British shoppers are second only to South Koreans in the proportion of groceries they buy online.
Discounters are the second-fastest growing channel in 2016 with 5.1% value growth. Discounters saw the highest value growth in Colombia -124% - where over 600 stores were opened in 2016.
This channel is still growing but at a sluggish pace of 0.7%. It has seen some success in some developing regions of Latin America however it is struggling against discounters in the UK and Spain , Peru , where traditional trade dominates, and in South Korea where e-commerce is fast becoming the dominant channel.
In developing regions where modern trade would be the next practical step, traditional and other formats (comprising door-to-door, cash and carry and pharmacies) are still performing well. In Africa , for example, where price and connectivity are key factors, traditional trade accounts for an average of 69.4% value share).
FMCG spend through this channel is growing faster than total FMCG in 50% of regions across the globe.
"Channels which traditionally dominated the field - supermarkets, hypermarkets, drugstores - are in steady decline worldwide. Step forward the 'new order': e-commerce and discounters, cannibalising the big retailers with their promise of convenience and lower prices.
"Technology is fast changing the way people shop and, with e-commerce and discounters set to continue their march at the expense of large format retailers, there is an urgent need for retail reconfiguration across the world."
In the first study of its kind, Kantar Worldpanel's global research team and partners have used consumer panel data to build a complete picture of the global retail landscape.
By measuring real shopping behaviour and the retail choices of more than three billion people in 28 countries, Kantar Worldpanel has observed the interaction between all channels - from traditional to modern trade and e-commerce - over the past three years.
Looking ahead, the report also predicts the changes facing the retail landscape over the next three years, and explores how these might impact FMCG sales in the future.
Kantar Worldpanel is the global expert in shoppers' behaviour.
Through continuous monitoring, advanced analytics and tailored solutions, Kantar Worldpanel inspires successful decisions by brand owners, retailers, market analysts and government organisations globally.
With over 60 years' experience, a team of 3,500, and services covering 60 countries directly or through partners, Kantar Worldpanel turns purchase behaviour into competitive advantage in markets as diverse as FMCG, impulse products, fashion, baby, telecommunications and entertainment, among many others.
For further information, please visit us at www.kantarworldpanel.com
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Kantar is one of the world's leading data, insight and consultancy companies. Working together across the whole spectrum of research and consulting disciplines, its specialist brands, employing 30,000 people, provide inspirational insights and business strategies for clients in 100 countries. Kantar is part of WPP and its services are employed by over half of the Fortune Top 500 companies.
For further information, please visit us at www.kantar.com
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