retail format structure and development
TRANSCRIPT
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
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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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Copyright © 2012 Nielsen. Confidential and proprietary.
Format structure - number of stores
Source: Nielsen retail census
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Copyright © 2012 Nielsen. Confidential and proprietary.
Sales split by store format
SM: 19%
HM: 19%
HM: 22%
SM: 17%
Source: Nielsen retail census
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Copyright © 2012 Nielsen. Confidential and proprietary.
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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Copyright © 2012 Nielsen. Confidential and proprietary.
Retail surface allocation between store types
Source: Nielsen retail census
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Copyright © 2012 Nielsen. Confidential and proprietary.
Urbanization in Bulgaria
Source: National Statistical Institute
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Copyright © 2012 Nielsen. Confidential and proprietary.
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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Copyright © 2012 Nielsen. Confidential and proprietary.
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
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Copyright © 2012 Nielsen. Confidential and proprietary.
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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Copyright © 2012 Nielsen. Confidential and proprietary.
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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Copyright © 2012 Nielsen. Confidential and proprietary.
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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Copyright © 2012 Nielsen. Confidential and proprietary.
Stand out in the Crowd if you want to make a difference
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Copyright © 2012 Nielsen. Confidential and proprietary.
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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Copyright © 2012 Nielsen. Confidential and proprietary.
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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Copyright © 2012 Nielsen. Confidential and proprietary.
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