The “eyes” of the powerful organized food retail trade have come to independent small retail stores, i.e. mini markets and grocery stores, which, although numerically decreasing in the last 15 years, continue to add up a not inconsiderable turnover, in the order of 3 billion euros.
While if we include the sales of kiosks and convenience stores, the sales of small retail reach 5.15 billion euros, as stated in “Vima” by Mrs. Stamatina Panteleoudirector of Economic Sector Studies of ICAP CRIF.
And it is not only the large supermarket chains that show more and more zeal to win the “neighborhood battle”, but new contenders have also appeared, such as companies operating in the so-called quick commerce and others in the logic of the one stop shop (a little focus , a bit of a kiosk, a bit of a convenience store, a bit of a cafe and a bit of a grocery store), even on a 24-hour basis.
Individual convenience stores are in first demand (convenience stores) located in areas with a high population density, as they offer a kind of guarantee for a large and stable clientele, as well as those in the “heart” of the peripheral areas with limited space and high tourist traffic.
Extended hours
How many, who and how will survive from those who will not give in to the pressure of the branded chains will depend on whether they manage to adapt quickly to the new demands of consumers, who want the small retailer to have a wide variety of products from basic items to specialized products health and wellness, have extended hours, even 24/7, conduct promotions and personalized offers, operate an online store, have loyalty programs and automated checkouts, and provide home delivery services.
All of the above, or at least most of it, plus brand awareness and a range of support services, from marketing and technical assistance at all levels to the provision of financing tools, are offered by chains through the franchise system (franchise), aiming to attract either entrepreneurs who already have a small retail store in a “good” area or young people who wish to have their own business.
New normality
In any case, the prospects of small shops, which show that they are not only resisting the new normal of punctuality but also growing, in contrast to the high-cost large supermarkets, which are currently showing signs of saturation, result in strong mobility in the sector .
AB Vassilopoulos’ increased interest in small retail is a tangible example. Hence and as explained by Nikos Lavidasbrand president of AB Vassilopoulos, invests further in the franchise, which currently contributes 15% of sales from 12% last year, with the aim of reaching 25% in the next three years.
Transformation
This strategy, part of the three-year transformation plan of the Greek subsidiary of the multinational group Ahold Delhaize, will expand the network of stores in new areas, especially in areas with strong tourist traffic, while keeping operating costs low and ensuring higher EBITDA margins.
AB’s plan until the end of 2024 includes the conversion of 45 stores into franchises, and the closing of 11 corporate stores with a parallel investment in 63 new stores both in the franchise model and in the network of AB corporate stores, which currently number 293. The amount of investments amounts to approximately 50 million euros.
Competitiveness
At the same time, OK! Anytime Market with 154 “mini supermarkets” with daily hours 8 am-11 pm, Monday to Sunday, aims to maintain the positive course of its results and to improve the net position of the company by constantly strengthening competitiveness and its effectiveness.
For 2023 the turnover of the chain, which is developed through franchises, increased to 74.74 million euros from 68.33 million euros in 2022 and the results of use before taxes amounted to 1.08 million euros against 977 thousand euros in 2022. OK! Anytime Market added 10 new stores to its network in the first half of 2024.
The expansion of Metro AEBE’s My Market Local network is also dynamic, reaching 29 neighborhood stores with the goal of exceeding 30 by the end of the year. It should be noted that neighborhood stores can operate with extended hours and on Sundays.
As mentioned by Mr. Aristotle Panteliadispresident and CEO of the METRO group, My market Local is steadily gaining the interest of new investors, with the company receiving 100 applications per month from potential franchisees.
Partnerships
Diamantis Masoutis is also considering the development of a franchise network in the neighborhoods, according to the general manager of the chain, Mr. Theodoros Gerostergioudiwhile the northern Helladic chain already maintains flexible commercial cooperation with 180 small stores nationwide under the Express Market brand.
At the end of June, the number of Carrefour stores in Greece reached 43, of which 17 are corporate, with Retail & More, its interests N. Vardinogiannisto target over 50 stores by the end of 2024.
According to the financial statements of the AVE group, to which Retail & More belongs, the net sales of the consumer goods wholesale sector in the first half of the year were close to 6 million euros, although the result after taxes was a loss of 1 .27 million euros.
And robotically
The Mini STOP Kiosk chain, which combines a street cafe and snack, convenience store, wine cellar and service point, has reached the 21 convenience stores, operating with extended hours.
Seven days a week, 24 hours a day, the 48 Yes! Stores in Athens and Thessaloniki, while ISN Anonymi Etairia, which develops the 4all chain through franchises, currently has 133 mixed convenience stores and take-away cafes, mainly in Northern Greece.
Finally, the i-mall Micro Market, fully automated robotic stores that operate 24/7 only with contactless transactions, already have stores in Athens, Thessaloniki, Trikala and Patras.
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