+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Europe Grocery Report

  • ID: 4655872
  • Report
  • Region: Europe
  • 288 Pages
  • ResearchFarm Ltd
1 of 3
The EU 28’s Grocery Markets are a €1.0 Trillion Sector

FEATURED COMPANIES

  • Aldi
  • Auchan
  • Coop
  • Esselunga
  • Mercadona
  • Netto Marken-Discount
  • MORE

The EU 28’s grocery markets are a €1.0 trillion sector, a barrier that was broken for the first time in 2015. 
 
Despite decades of EU integration, national grocery markets remain quite different from each other. But there are strong commonalities too – one is the rise of German hard discount. 
 
The discounters will become the biggest retailers by sales in the EU. Schwarz Gruppe, Lidl’s parent, is already the number 1 in the EU. Total turnover including Kaufland reached €96.9bn (+7.4%) in 2017 (YE Feb 2018). For comparison, Carrefour 2017 sales stood at €88.2bn (EU and ROW), with the retailer struggling for growth. Aldi sales were not far behind. 
 
To understand what’s in store in other markets one should look to their domestic market. And currently there is nothing short of a revolution going on at Aldi in Germany.
 
After years of Lidl’s growth outperforming the sector, the discounter has run out of steam and radical change is afoot. Once again Lidl acts as a trailblazer innovating in the supply chain, logistics and store design, but now against a backdrop of Aldi flying high. 

As all major players have pledged record investment levels into their store estate and digital transformation, German grocery looks likely to become a beacon for store design and in store as well as store format innovation for years to come.
 
With €186bn in sales France has become the biggest grocery market in the EU. 2017 saw significant changes in the sector with E.Leclerc becoming the biggest grocer and toppling Carrefour of its perch. 
 
Regarding online, the drive boom is now over, due to legislation and saturation, so that the rate of openings has significantly slowed. Moreover there is a shopper behaviour shift towards ultra fast deliveries (hence the Ocado/Monoprix or Amazon/Casino deal) and most of the big players are pushing innovative partnerships with logistics start ups to speed up same day deliveries.
 
In the UK consumer spending is under enormous pressure. Prices are rising, wage growth is flat and interest rates are on the up. At the same time, retailers face increasing cost pressures from online, rate rises, minimum wage rises and input cost inflation.
 
The structure of the market is changing, with both Tesco buying into wholesale (Booker) and Sainsbury’s into non food (Argos) and … the competition (Asda). 
 
Looking ahead, Aldi and Lidl could more than double their market share to as much as a quarter of the market over the next 3-5 years. If it comes to a no deal Brexit then the damage to the sector would be immense. The big 4, Tesco, Sainsbury, Asda and Morrisons would suffer for years to come. 
 
In a clear sign that the crisis in Spain is now well and truly over, Mercadona is ramping up the SKU counts in stores again (easily done as it controls its inter providores suppliers) and investing heavily in brighter new store outlets (as well as online) – as Spanish shoppers have finally more disposable income to spend again. The move to downscale in 2007/8 and speedy reaction to changed realities on the ground is credited with the retailer gaining market leadership in the country.
 
While negotiating its transition after the death of its founder, Italy’s Esselunga remained the most efficient grocer in all of the EU in 2016 with over €16,000 of sales per square meter. To put this figure in context, market leader Coop reported sales of €6,700 per square meter – or almost €10k less. Looking ahead, the market will be shaken up by the entry of Aldi and the investment pledged by Lidl.

Note: Product cover images may vary from those shown
2 of 3

FEATURED COMPANIES

  • Aldi
  • Auchan
  • Coop
  • Esselunga
  • Mercadona
  • Netto Marken-Discount
  • MORE

1. Executive summary                                                       

2. Millennial shopper                                                       

Millennial shopper: an introduction                                           
Millennial shopper: (1) Green, health & wellness                                   
Millennial shopper: (2) Craft/artisanal                                           
Millennial shopper: (3) Digitalisation, social media, voice                               
Millennial shopper: (4) Urbanisation challenges                                       

3. The future of Grocery Retail                                               

Grocery retail: Five theses for the future of retail                                   
Grocery retail: (1) the age of store based foreign expansion is over – unless you’re a discounter       
Grocery retail: (2) Discounters will become the biggest EU retailers by sales                   
Grocery retail: (3) Vertical integration in grocery retailing will continue                        
Grocery retail: (4) Winning strategies: convenience, fresh and foodservice                        
Grocery retail: (5) digitalisation and innovation logistics, loyalty and in store                   

4. The future of FMCG                                                       

FMCG: (1) Ingredients splitting three ways                                       
FMCG: (2) all growth from small scale start ups                                       
FMCG: (3) almost all innovation from small scale start ups                               
FMCG: (4) cost cutting & M&A, (5) Silicon Valley                                   
FMCG: a new golden age for CPG? Not likely for the small players                           
GDP & Population, EU 28                                                   

GDP: EU28 2014, 2015, 2016 in €, ranked by size                                   
GDP & Population: analysis and explanation                                       
GDP: EU28 2016 in €, ranked by size, Germany – Finland                               
GDP: EU28 2016 in €, ranked by size, Portugal - Malta                               
Population: EU28 2017, ranked by size                                           
GDP: EU28 2016, in €, per capita, ranked by size, Luxembourg – Spain                       
GDP: EU28 2016, in €, per capita, ranked by size, Malta - Bulgaria                           

5. EU28 Retail, On a rebound                                               

Retail: EU28 2014, 2015, 2016, in €, ranked by size                                   
Retail: EU28 2016, in €, ranked by size, France – Finland                               
Retail: EU28 2016 in €, ranked by size, Greece - Malta                               
Retail sizes: analysis and explanation                                           
Retail: % share of GDP, EU28 2016, ranked by size                                   
Retail: EU28 2016, in €, per capita, ranked by size, Luxembourg – Cyprus                       
Retail: EU28 2016, in €, per capita, ranked by size, Spain – Romania                       
Grocery Retail, Defensive sector in transformation                                   

Grocery Retail: EU28 2015, 2016, 2017, in €, ranked by size                               
Grocery Retail: EU28 2017, in €, ranked by size, France - Denmark                           
Grocery Retail: EU28 2017, in €, ranked by size, Finland - Malta                           
Grocery Retail sizes: analysis and explanation                                       
Grocery Retail: % share of Retail, EU28 2016, ranked by size                           
Grocery Retail: EU28 2017, in €, per capita, ranked by size, Sweden - Estonia                   
Grocery Retail: EU28 2017, in €, per capita, ranked by size, Greece – Romania                   

6. EU28 Retail, Growth                                                   

Grocery Retail: EU28 2012 - 2017, in €bn                                     
Grocery Retail: EU28 2013 - 2017, in y-o-y %                                      
Grocery Retail: EU28 2012 - 2017, 5 year growth rate in %, ranked                          
Grocery Retail Growth: analysis and explanation                                   
Country profiles: France – the EU’s biggest grocery market                              

7. Executive Summary: France                                               

8. Market shares and profiles, the leading players                                   

France Grocery Retail: shares, in %, ranked by size, E.Leclerc – Aldi                       
France: E.Leclerc winning number one spot, Carrefour multichannel transformation               
France: E.Leclerc store format pictures, drive pieton, drive, express                           
France: Carrefour job losses to come, Intermarché operates most drives                       
France: Carrefour reflets de France, Carrefour BIO, store formats pictures                      
France: Casino the multichannel champion, the Cdiscount master stroke                      
France: Casino Cdiscount non food cooperation in store, execution pictures                   
France: Auchan, still the hypermarket operator with the highest sales density                   
France: Auchan Velizy, new click & collect system pictures                               

9. Discounters, Lidl dominates the French market                                       

France: Lidl leads the market in growth terms, Aldi Nord refreshes its stores                  
France: Lidl France store pictures, Aldi Nord refreshes its stores, pictures                      

10. Online, The French contribution of le drive                                      

France: the country of the drives, but home delivery is coming                           
France: the non food marketplaces integration and opportunities                           
Buying alliances, More potential synergies to come                                   

France: buying alliances, trying to avoid supervision of Loi Sapin 2                           

11. Organics boom, Chiming well with French cuisine                                   

France: halal boom, local artisanal products, private label developments                       
France: Organic specialists expanding, Biocoop, Naturalia and La Vie Claire                   
France: Data, organic market 1999-2015 in €m                                      
France: NatureO – the French organic specialist                                   

12. Outlook                                                           

Outlook: Grocers preparing for the Amazon Fresh onslaught                               
Country profiles: Germany – the land of the discounters                              

13. Executive summary: Germany                                               

14. Market shares and profiles, the leading players                                   

Germany Grocery Retail: shares, in %, ranked by size, Edeka – Globus                       
Germany: Edeka sales bigger than €50bn, investments, Budni partnership                      
Germany: Edeka integration of Netto, Tengelmann, Bringmeister                            
Germany: Edeka and Bringmeister, online strategy                                  
Germany: Edeka, Netto, Bringmeister store pictures                                    
Germany: Rewe, strong growth through acquisitions in 2017                               
Germany: Rewe raises funds to invest in its future, redesigns click & collect                    
Germany: Rewe digital moves away from pick from stores, scalable IT infrastructure                
Germany: Rewe’s discounter Penny starts online service                              
Germany: Rewe’s outlook, store remodeling, online                                   
Germany: Rewe’s click & collect, Rewe 2020 store, Penny store pictures                       

15. Discounters, The birthplace of Aldi and Lidl                                       

Aldi: The original – split into two, an organising principle to manage complexity                   
Aldi: Figures 2011 - 16, Sued & Nord in €m, international vs domestic                       
Aldi: Benchmarks, sales densities, Sued ahead of Nord, profits and margins                  
Recent developments - Aldi Nord and Sued 2017                                   

Germany: Aldi Nord revival gathering steam, record sales per store                           
Germany: Aldi Nord closes and Aldi Sued opens stores, while both grow sales                   
Germany: Henkel lists its Pril brand at Aldi Sued                                  
Germany: Aldi Nord opens new pilot store in Germany                                   
Germany: Aldi Nord’s new pilot store in Germany                                   
Germany: Aldi Nord’s new pilot store in Germany - store pictures                           
Germany: strategy change from pureplay private label to FMCG A brands listings                   
Germany: Aldi uses tactical promotions for FMCG A brands                               
Germany: Aldi Sued lists another Henkel brand, Schauma                              
Germany: Aldi logistics, innovation testing and optimisation                              
Germany: Amazon lockers at Aldi Sued                                           
Germany: Nivea is ramping up presence at both Aldis                                    
Germany: Aldi Sued lists more beer brands                                       
Germany: Aldi advertising coordination between Nord and Sued                          
Germany: Aldi starts non food B2C deliveries                                       
Germany: Aldi considers discounting and moving away from EDLP                          
Germany: Aldi Nord is planning €bn store investments                              
Germany: Aldi lists Jacobs coffee capsules, targeting Nespresso users                       
Germany: Aldi seeks to raise synergies in pan European buying of brands                       
Germany: Aldi Nord lists more Mueller brands                                       
Germany: Aldi Sued showcases new Frankfurt store                                   
Germany: Aldi Sued remodeled store of the future Frankfurt                              
Germany: Aldi Sued Frankfurt store pictures                                      
Germany: Aldi Sued also announces record investments                              
Germany: Aldi Sued is relaunching its private label ranges                              
Germany: Aldi Sued in convenience stores push, to trial new format                          
Germany: Aldi discounting permanently listed FMCG A brands in promotions                    
Germany: Aldi Sued entry label private label umbrella brand, pushing organics                   
Germany: Aldi Nord is building residential mixed use schemes in Berlin                       
Germany: Aldi Nord Berlin store pictures                                           
Germany: Aldi widens ranges, SKU count almost on Lidl level                           
Germany: Aldi’s new bake off stations, flexibility, price leadership                           
Germany: Aldi and bake off, the footfall driver par excellence                              
Germany: Aldi extending SKU range to record levels                                  

16. Lidl - Schwarz’ jewel in the crown                                               

Lidl: the copy cat overtaking Aldi, the original                                       
Lidl: OSA, Warendruck, operational independence for Lidl and Kaufland – until now?              
Lidl: category management, acting as the second mover                              
Schwarz: sales 2010 -17, total & domestic growth, domestic share of total                      
Lidl: strong growth essentially lfl, pan EU presence, big bang expansion                        
Lidl: store upgrades, premiumisation, bake off stations, vertical integration                      

17. Recent developments: Lidl 2017                                               

Germany: both Aldi and Lidl partner with SAP systems and mine big data                       
Germany: Lidl logistics and robots, going automated                                 
Germany: Lidl abandons online grocery in Germany and starts cutting costs                   
Germany: Lidl becoming a tech pioneer                                          
Germany: Lidl cuts back more –  further savings rounds                               
Germany: Lidl attacks Amazon suppliers                                           
Germany: Lidl starts using Salesforce, Lidl’s meal kit Kochzauber hits stores                  
Germany: Lidl is pushing vertical integration                                       
Germany: Lidl is expanding into conurbations with its convenience concept                   
Germany: Lidl takes groceries offline and only focuses on nonfood and meal kits                  
Germany: Lidl expands Kochzauber in stores, varies the business model                       
Germany: Lidl’s recycling and plastics reduction drive, the plastics strategy                       
Germany: Lidl starts operations at new online DC in Germany                           
Germany: Lidl’s metro store, pictures                                           

Online: State of play                                                 

Germany: Online state of play, AmazonFresh effect minimal – so far                           

18. Convenience stores, more potential synergies to come                               

Germany: the remaking of the convenience store market                              
Organics: Structural change in an established market                                    

Germany: structural change in the sector as the majors pile in                          
Germany: dennree, Alnatura, Basic store pictures                                   
Germany: Organic boom continues, sales over €10bn for the first time                      
       
19. Outlook                                                          

Outlook: Amazon? Aldi comes back with a vengeance                                  
Country profiles: UK – from innovator to laggard thanks to Brexit?                         

20. Executive summary: Sector in thrall to Brexit uncertainty, discounters, Amazon                  

21. Market shares and profiles, the leading players                                    

UK Grocery Retail: shares, in %, ranked by size, Tesco – Iceland                           
UK: Tesco recovery, cutting subsidiaries, countries and jobs                               
UK: Tesco’s Booker merger/acquisition                                           
UK: Tesco Booker, supplier opportunity, synergies, store in store concept                       
UK: online grocery opportunity with Booker, still much to do for Tesco                       
UK: Tesco’s vegan range, store pictures                                           
UK: Sainsbury’s – is the Argos acquisition turning sour?                               
UK: Sainsbury’s, job cuts, the failed Nisa tie up                                       
UK: Sainsbury’s Nine Elm’s store pictures                                       
UK: Asda new boss, Walmart dividend, finally turned a corner?                            
UK: the former Netto stores are still struggling, the runaway success of George                   
UK: Asda job cuts                                                       
UK: Asda click & collect pick up tower, George concession pictures                           
UK: Morrisons rebounding, partnering with Ocado and Amazon                           
UK: Morrisons – vertical integration as template to emulate for big 4, job cuts                   
UK: Morrisons store pictures, Alexa skill                                           
Discounters - Aldi and Lidl transforming UK grocery retail                               

UK: Aldi and Lidl revolutionising UK grocery, Aldi’s declining profits                           
UK: … as Aldi sales accelerate, Aldi store opening plans                               
UK: Aldi Christmas record, breaking the £10bn in sales barrier                           
UK: Lidl fastest growing grocer for Christmas in UK, store expansion plans                    

UK: why Tesco’s discounter attempt will simply not work                               
UK: cannibalisation, Capex, buyer set up, product quality, store footprints                       
UK: multichannel (incl discounter) vs focused discount operation, poor track record               
UK: too expensive to launch and dubious results                                   

UK: Aldi UK, Lidl UK store pictures, PL specially selected, deluxe pictures                       

22. Online, UK is the leading EU online grocery market                                   

UK: the country of home delivery, Tesco champion, Ocado leapfrogging the rankings               
UK: Asda’s online basket size, Waitrose decline, Morrisons and Amazon                       
Brexit impact, What would happen to food & grocery under a no deal scenario?                   

Food & Grocery: drivers of food price inflation                                       
Food & Grocery: our estimates for food price inflation                                   
Food & Grocery: no deal impact on price, up to a third more for everyday food                    
Food & Grocery: no deal impact on availability                                       
Food & Grocery: animal products and BIPs                                       

23. Outlook, Brexit – the worst case scenario                                       

Food & Grocery: growth 2010 – 16, forecast, inflation, volume for 2017-9                        
Food & Grocery: in £bn 2010 – 19f, skyrocketing inflation, in no deal scenario                   
Food & Grocery: relative winners, hard discounters, vertically integrated Morrisons               
Food & Grocery: panic buying, collapse of Irish trade, devastation of UK farming                   

24. Asda/Sainsbury merger - the implications for grocers and suppliers                           

Asda/Sainsbury: the implications of the merger                                       
Asda/Sainsbury: lower prices and threats to suppliers                                   
Asda/Sainsbury: synergies and where they come from                               
Asda/Sainsbury: non food and other opportunities                                   
Asda/Sainsbury: UK’s big 4 will become the big 3, but there is still Aldi & Lidl                   
Asda/Sainsbury: will it move towards one brand in future?                               

25. Country profiles: Italy                                                   

Executive summary: Italy - a tale of two opposites                                   
Executive summary: Italy – dominated by the cooperatives                                

26. Market shares and profiles, Italian Grocery market                                   

Italy Grocery Retail: shares, in %, ranked by size, Coop – Lidl                           
Italy: the cooperatives dominate, Esselunga the standout operator                           
Italy: Conad challenges for leadership                                           
Italy: Esselunga store format pictures                                            
Italy: Esselunga – transitioning after death of founder                                   
Italy: Esselunga private label pictures                                            
Italy: Esselunga operator with the highest sales density                                

27. Discounters                                                           

Italy: Aldi Sued enters the market belatedly                                       
Italy: …and Lidl invests €350m to update its store concept                               
Italy: Aldi store pictures                                                   
Online                                                               

Italy: online grocery pioneers                                               
Italy: Online, Esselunga leads the market                                       

28. FICO: Italy                                                           

Italy: FICO Eataly, pictures                                                   
Italy: FICO Eataly, the Disneyworld of food                                         
Italy: FICO Eataly, the largest agri-food park in the world, a hotel is coming                       
Country profiles: Spain                                                   

Executive summary: Spain – the land of vertical integration                               
Executive summary: Spain – the crisis is over as Mercadona ramps up its ranges                

29. Market shares and profiles, Spanish Grocery market                                   

Spain Grocery Retail: shares, in %, ranked by size, Mercadona – Auchan                       
Spain: hypermarkets and regional chains, the crisis is well and truly over                       
Spain: Mercadona store format pictures, the new store model                            
Spain: Mercadona, the vertical integration champion                                   
Spain: Mercadona PL range, deliplus, hacendado, bosque verde, compy                       
Spain: Mercadona’s co innovation and vertical integration strategy and facts                   
Spain: Dia la Plaza store pictures                                            
Spain: Dia focuses on digital and 3P partnerships                                   

30. Discounters                                                           

Spain: all about Mercadona, Lidl growing strongly, but only also-ran                            
Spain: more on Mercadona’s success factors, the large industrial cluster                        
Spain: Lidl strong growth after heavy investments in recent years                           
Spain: Aldi wants to reach more than 300 stores in Spain                               
Online                                                               

Spain: online – potential to grow, Mercadona is investing                               

31. Sources                                                           

A bit more on the publisher                                                
Chart 1 GDP: EU28 2014, 2015, 2016 in €, ranked by size                               
Chart 2 GDP: EU28 2016 in €, ranked by size, Germany – Finland                           
Chart 3 GDP: EU28 2016 in €, ranked by size, Portugal – Malta                           
Chart 4 Population: EU28 2017, ranked by size                                   
Chart 5 GDP: EU28 2016, in €, per capita, ranked by size, Luxembourg – Spain                   
Chart 6 GDP: EU28 2016, in €, per capita, ranked by size, Malta – Bulgaria                   

Chart 7 Retail: EU28 2014, 2015, 2016, in €, ranked by size                           
Chart 8 Retail: EU28 2016, in €, ranked by size, France – Finland                           
Chart 9 Retail: EU28 2016 in €, ranked by size, Greece - Malta                               
Chart 10 Retail: % share of GDP, EU28 2016, ranked by size                           
Chart 11 Retail: EU28 2016, in €, per capita, ranked by size, Luxembourg – Cyprus               
Chart 12 Retail: EU28 2016, in €, per capita, ranked by size, Spain – Romania                   

Chart 13 Grocery Retail: EU28 2015, 2016, 2017, in €, ranked by size                       
Chart 14 Grocery Retail: EU28 2017, in €, ranked by size, France - Denmark                   
Chart 15 Grocery Retail: EU28 2017, in €, ranked by size, Finland - Malta                       
Chart 16 Grocery Retail: % share of Retail, EU28 2016, ranked by size                       
Chart 17 Grocery Retail: EU28 2017, in €, per capita, ranked by size, Sweden - Estonia               
Chart 18 Grocery Retail: EU28 2017, in €, per capita, ranked by size, Greece – Romania           
Chart 19 Grocery Retail: EU28 2012 - 2017, 5 year growth rate in %, ranked                   

Chart 20 France Grocery Retail: shares, in %, ranked by size, E.Leclerc - Aldi                   
Chart 21 France: Data, organic market 1999-2015 in €m                               

Chart 22 Germany Grocery Retail: shares, in %, ranked by size, E.Leclerc - Aldi                   

Chart 23 UK Grocery Retail: shares, in %, ranked by size, Tesco – Iceland                       
Chart 24 Food & Grocery: growth 2010 – 16, forecast, inflation, volume for 2017-9                
Chart 25 Food & Grocery: in £bn 2010 – 19f, skyrocketing inflation, in no deal scenario               

Chart 26: Italy Grocery Retail: shares, in %, ranked by size, Coop – Lidl                       

Chart 27: Spain Grocery Retail: shares, in %, ranked by size, Mercadona – Auchan               

Table 1: Grocery Retail: EU28 2012 - 2017, in €bn                                   
Table 2: Grocery Retail: EU28 2013 - 2017, in y-o-y %                                       

Table 3: Aldi: Figures 2011 - 16, Sued & Nord in €m, international vs domestic                   
Table 4: Schwarz: sales 2010 -17, total & domestic growth, domestic share of total

Note: Product cover images may vary from those shown
3 of 3

Loading
LOADING...

4 of 3
  • Aldi
  • Alnatura
  • Amazon
  • Argos
  • Asda
  • Auchan
  • Biocoop
  • Booker
  • Carrefour
  • Casino
  • Coop
  • dennree
  • Dia la Plaza
  • E.Leclerc
  • Edeka
  • Esselunga
  • FICO Eataly
  • Kaufland
  • La Vie Claire
  • Lidl
  • Mercadona
  • Monoprix
  • Morrisons
  • Naturalia
  • NatureO
  • Netto Marken-Discount
  • Ocado
  • OSA
  • REWE
  • Sainsbury
  • Tesco
  • Warendruck
Note: Product cover images may vary from those shown
Adroll
adroll