Retail format structure and development

Retail format structure and development

Bulgaria 2012

The growth of Modern Self-Service Grocery retailing in Bulgaria still raises some

associations and some ???

Understanding how the retail network is changing

Nielsen Census

*

Copyright © 2012 Nielsen. Confidential and proprietary.

Evolution of the number of stores in Bulgaria

Source: Nielsen retail census

vs. 2000

x10x7x4

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Format structure - number of stores


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Sales split by store format

SM: 19%

HM: 19%

HM: 22%

SM: 17%


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Level of concentration in Bulgaria 2011

The market is still fragmented with many local and international players

*In alphabetical order Billa, CBA, Fantastico, Kaufland, Piccadilly

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Retail surface allocation between store types


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Urbanization in Bulgaria

Source: National Statistical Institute

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Summary of observed changes in the retail network

●No massive sudden shifts …

●… but the store format matters

●International players have the power to change the retail environment

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The Shoppers’ Perspective

shopper trends

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Declared frequency of visits per 4 weeksN

umbe

r of v

isit

per m

onth

shopper trends

*


Number of Supermarket/Hypermarket Used - Stores Used in Past 4 Weeks (2011)

More Super/Hypermarkets are visited monthly than in the start of the recession

Base: All supermarket shoppers (n=900) Ref: Q13b

2010 20112009

shopper trends

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Trip type

The main driver to visit the grocery store is to stock up the basics

Base: Hypers/Supers (n= 900)Ref: Q95

shopper trends

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Adoptiveness

No significant changes vs last year.

Shoppers stick to what they already know, yet 30% are looking for something new

Base: Hypers/Supers (n= 900)Ref: Q26

shopper trends

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Stand out in the Crowd if you want to make a difference

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Store Equity - How strong is a store’s equity? What is it built upon?

The Brand Equity model deconstructs the sources of store equity to understand its building blocks

store equityindex

Awareness (20%)

Consideration (20%)

Quality products (13%)

Efficiency/ Loyalty Program (11%)

Large Store Format & Wide Selection (14%)

Pricing & Value for money (14%)

Store Accessibility (8%)

No change in importance or order or store equity index blocks vs last year.

Winning Brands™ Model Results

shopper trends

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SubliminalSay it, mean it

Low discriminators

High

DER

IVED

IMPO

RTA

NC

E

HighSTATED IMPORTANCELow

Say it, don’t mean it

Store magnets - Importance of Store AttributesStated vs. Derived Importance

Basic

Most important

Less important

shopper trends

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Where from here?

●Differentiate - build on enduring consumer trends

●Be the Brand - Brand leadership will be more important than ever

●Create the Shopper / Consumer Experience

●Innovate - search for new ways to engage shoppers to build strong banner and product brands

FOR MORE ANSWERS ON RETAIL AND SHOPPER TRENDS

Retail format structure and development

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