Hypermarkets, Supermarkets Losing Global Shares

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Barcelona, Spain — During 2016, hypermarkets and supermarkets grew global sales for fast-moving consumer goods by 0.7 percent, while online spending increased 26 percent, discounter sales gained 5.1 percent and cash-and-carry merchants grew sales 4.1 percent, according to Kantar Worldpanel.

Stéphane Roger, global shopper and retail director, Kantar Worldpanel, says: “Channels which traditionally dominated the field — supermarkets, hypermarkets and drug stores — are in steady decline worldwide. Stepping forward are the ‘new order,’ ecommerce and discounters, which are cannibalizing the big retailers with their promise of convenience and lower prices.”

Online grocery sales continue to rise, especially in advanced ecommerece markets such as the UK and China. For instance, internet grocery sales grew value share from 6.7 percent to 7.3 percent this past year, according to the market research company. In fact, British shoppers are second only to South Koreans in the proportion of groceries they buy online. In the U.S., online grocery sales grew 5 percent from 2015 to 2016.

The second-fastest growing channel globally is discounters, which had explosive growth in Colombia in 2016, with the opening of more then 600 discount outlets, Kantar reports. While discounters grew in South America, the channel did show slow growth in some developed markets such as France and Japan.

“Technology is fast changing the way people shop and, with ecommerce 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,” Roger adds.

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