Retail continues to grow
It´s what all the forecasts were predicting, the retail sector has grown 1,3% in 2017, prolonging the upward trend of the last few years. According to the study “Distribution and Retail in 2017”, presented by the prestigious research institute Kantar Worldpanel, the recovery has been possible mostly thanks to a greater household demand, with annual spending at an average of 4,190€ in shopping basket. They are excellent news for a sector in which Eurofrits has one of their main distribution channels.
The annual spending per household in purchasing food, cleaning products, toiletries and cosmetics has grown 1% in relation to 2016. By regions, the ones that have increased their spending the most are Baleares, Murcia, Andalucía and País Vasco, with growth over 2%. The regions with highest spending per capita are Cataluña (4,599€), Galicia (4,574) and País Vasco (4,528€), while those with the lowest amounts are La Rioja (3,557€), Extremadura (3,683€) and Comunidad Valenciana (3,932€).
According to the report´s conclusions, one of the key market catalysts in 2017 has been the consumer drive to acquire healthier habits. For households, it´s not only important to sustain a healthy diet (74% see it that way), but also they increasingly lean towards proximity or locally produced articles, and are willing to pay a little ore for those that may help to prevent diseases (38%).
From the distribution point of view, the specialist channel continues to push the rise of this dynamic channel, and accounts for one in every four euros spent in Retail (it stood at 26,5% in 2016). The large chain supermarket (or hypermarket chains) is the only type of distribution that recedes in market share (13,3% vs 13,6% in 2016), while short-supply (discount retailers) increase their market share to 36,2%.
The online channel continues to grow: a total of 4,7 million households made some kind of FMCG purchase via Internet in 2017. These households commit, as an average, 8% of their budget to online shopping, which means that they still spend 92% in brick and mortar outlets.
And last it is worth looking at Distributor brands, which rise to 36,4% of spending in retail packaged goods. However, the impact of the so-called “exclusive brands”, sold in a virtually exclusive way in a particular distributor, helps the global pool of brands associated to distribution grow 0,8% and reach 41% of expenditure.
More information on the report in this link.
