Kantar Worldpanel: Global Hypermarket and Supermarket Market Share Shrinks as e-Commerce, Discounters and Traditional Formats Prosper

LONDON, July 7, 2017 /PRNewswire/ --

- By 2021 hypermarkets and supermarkets will account for less than half of total trade

- Supermarket and hypermarket growth especially slow in the UK, South Korea and Peru

Kantar Worldpanel's Winning Omnichannel - an annual report on FMCG trade channels - was published today, revealing the shrinking market share of supermarkets and hypermarket across the globe.

Table 1: Global FMCG value share and 2016 value growth, per channel 

                                    Global value  Global value    Percentage value
    Channel                           share 2015    share 2016       increase (yoy)
    E-commerce                              3.8%          4.6%                 26%
    Discounters                             5.5%          5.6%                5.1%
    Convenience                             4.6%          4.6%                4.1%
    Cash and carry                          1.1%          1.4%                4.1%
    Hypermarkets and supermarkets          53.2%           52%                0.7%
    Traditional                            26.1%         26.1%                3.2%
    Door to door                            0.8%          0.8%                0.7%
    Drugstore and pharma                    0.6%          0.6%                0.9%

The share of hypermarkets and supermarkets is predicted to reduce further, to just 48% of global FMCG spend by 2021, with e-commerce set to grow to 7.5% and discounters 6.5%.

E-commerce 

The share of grocery shopping conducted online continues to rise, particularly in the world's most advanced e-commerce markets, such as South Korea, China and the UK. In the UK, online sales grew from 6.7% to 7.3% value share in the last year alone. British shoppers are second only to South Koreans in the proportion of groceries they buy online.

Table 2: Value share of e-commerce across each market and percentage growth of FMCG spend through e-commerce, per market. (Value share is the percentage of e-commerce FMCG purchases versus total FMCG purchases across all channels.) 

    E-commerce-fastest growing                    E-commerce-slowest growing
                                                                               
    Market                 Value       Growth     Market            Value      Growth
                      share 2016    2016/2015                  share 2016   2016/2015
    Mainland China          5.7%          53%     France             5.5%          8%
    South Korea            19.7%          41%     UK                 7.3%          8%
    Taiwan                  5.7%          36%     Argentina          0.8%          7%
    Spain                   1.7%          29%     Japan              7.4%          5%
    Portugal                  1%         24.3     USA                1.5%          5%

Discounters 

Discounters are the second-fastest growing channel in 2016 with 5.1% value growth. Discounters saw the highest value growth in Colombia -124% - where over 600 stores were opened in 2016.

Table 3: Value share of discounters across each market and percentage growth of FMCG spend through discounters, per market. (Value share is the percentage of discounter FMCG purchases versus total FMCG purchases across all channels.) 

    Discounters - fastest growing            Discounters - slowest growing
                                                                     
    Market          Value         Growth     Market       Value        Growth
               share 2016      2016/2015             share 2016    2016/2015
    Colombia           7%           124%     Japan         5.3%           3%
    Argentina        8.6%            32%     Spain        16.2%           1%
    Brazil           1.6%            13%     Chile        12.5%          -2%
    UK               9.2%            11%     Portugal     14.4%          -4%
    Ecuador          2.5%             7%     France         11%          -5%

Hypermarkets and supermarkets 

This channel is still growing but at a sluggish pace of 0.7%. It has seen some success in some developing regions of Latin America however it is struggling against discounters in the UK and Spain, Peru, where traditional trade dominates, and in South Korea where e-commerce is fast becoming the dominant channel.

Table 4: Value share of hypermarkets and supermarkets across each market and percentage growth in FMCG spend through hypermarkets and supermarkets, per market. (Value share is the percentage of hypermarket and supermarket FMCG purchases versus total FMCG purchases across all channels.) 

   
    Hypermarkets and supermarkets -              Hypermarkets and supermarkets -
    fastest growing                              slowest growing
                                      Growth                                        Growth
    Market       Value share 2016  2016/2015    Market       Value share 2016    2016/2015
    Argentina               30.1%        25%    Malaysia                70.2%          -1%
    Central Ame.            16.3%        20%    Spain                   66.5%          -1%
    Brazil                  53.7%        16%    UK                      62.7%          -3%
    Indonesia                7.9%        11%    Peru                    15.8%          -5%
    Mexico                  18.8%        10%    South Korea             55.1%          -7%

Traditional trade 

In developing regions where modern trade would be the next practical step, traditional and other formats (comprising door-to-door, cash and carry and pharmacies) are still performing well. In Africa, for example, where price and connectivity are key factors, traditional trade accounts for an average of 69.4% value share).

FMCG spend through this channel is growing faster than total FMCG in 50% of regions across the globe.

Table 5: Value share of traditional trade across each market and percentage growth of FMCG spend through traditional trade per market. (Value share is the percentage of traditional trade FMCG purchases versus total FMCG purchases across all channels.)  

    Traditional trade-fastest growing               Traditional trade-slowest growing
                                                                                        
    Market      Value share 2016    Growth    Market   Value share 2016      Growth
                                  2016/2015                               2016/2015
    Argentina             40.8%         27%   Mexico              37.9%          0
    Brazil                24.8%         15%   Spain               10.8%         -1%
    Ghana                 99.7%          8%   Thailand            52.2%         -1%
    Taiwan                56.3%          6%   Portugal             2.5%         -1%
    Vietnam               78.5%          5%   Saudi Arabia        36.9%         -5%

"Channels which traditionally dominated the field - supermarkets, hypermarkets, drugstores - are in steady decline worldwide. Step forward the 'new order': e-commerce and discounters, cannibalising the big retailers with their promise of convenience and lower prices.

"Technology is fast changing the way people shop and, with e-commerce 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."

About Kantar Worldpanel's Winning Omnichannel Report 

In the first study of its kind, Kantar Worldpanel's global research team and partners have used consumer panel data to build a complete picture of the global retail landscape.

By measuring real shopping behaviour and the retail choices of more than three billion people in 28 countries, Kantar Worldpanel has observed the interaction between all channels - from traditional to modern trade and e-commerce - over the past three years.

Looking ahead, the report also predicts the changes facing the retail landscape over the next three years, and explores how these might impact FMCG sales in the future.

About Kantar Worldpanel 

Kantar Worldpanel is the global expert in shoppers' behaviour.

Through continuous monitoring, advanced analytics and tailored solutions, Kantar Worldpanel inspires successful decisions by brand owners, retailers, market analysts and government organisations globally.

With over 60 years' experience, a team of 3,500, and services covering 60 countries directly or through partners, Kantar Worldpanel turns purchase behaviour into competitive advantage in markets as diverse as FMCG, impulse products, fashion, baby, telecommunications and entertainment, among many others.

For further information, please visit us at www.kantarworldpanel.com

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About Kantar 

Kantar is one of the world's leading data, insight and consultancy companies. Working together across the whole spectrum of research and consulting disciplines, its specialist brands, employing 30,000 people, provide inspirational insights and business strategies for clients in 100 countries. Kantar is part of WPP and its services are employed by over half of the Fortune Top 500 companies.

For further information, please visit us at www.kantar.com

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SOURCE Kantar Worldpanel