Top 20 CEE Grocery Retailers: Tesco slips while ... - Planet Retail

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Ongoing market consolidationKey market players made two huge moves in 2011. In Russia, X5 Retail Groupacquired 660 Kopeika supermarkets to consolidate its position in Moscow andthe Moscow region, while Belgium-based Delhaize Group purchased Delta M,the retail arm of Delta Holding in Serbia. This was Delhaize’s largest move inCentral Europe since its exit from the Czech Republic and Slovakia in 2006. Theretailer has secured the position of clear market leader in Serbia, as well asgaining access to new markets like Bulgaria, Albania and Bosnia andHerzegovina. Thanks to this acquisition combined with its strong position inGreece, Delhaize Group has become one of the key grocers in the Balkans. On amuch smaller scale by comparison, Slovenian Tus sold its Serbian business toCroatian Agrokor, while Slovenian Mercator completed a takeover ofPantomarket, market leader in Montenegro.A busy year in Balkan marketsIndeed the Balkans proved to be the most vibrant market in 2011. In Greece, Aldicompleted the sale of its business to Schwarz Group’s Lidl and other competitorsat the start of the year. The country’s ongoing economic turmoil led to bankruptcyof Atlantic, once among the leading Greek retailers. The revenues of the marketleader Carrefour Marinopoulos kept plummeting and Carrefour eventually calledtime on the joint venture agreement between itself and Marinopoulos. Last butnot least, in Slovenia, Mercator's management withdrew its support for thecompany sale to Croatian rival Agrokor as a consortium of banks was trying tosell a 52.1% stake in the retailer, leading to the resignation of its entiremanagement in March 2012.
Major trends for 2012: e-commerce, franchising and marketconsolidationTesco is supplying online shoppers from four hypermarkets in Prague.The year 2012 will be a milestone for the launch and expansion of e-commercebanners by grocers like Tesco, Auchan, Leclerc, Mercator and X5 Retail Group.Tesco has recently rolled out its online banner in Prague and Warsaw with shortterm plans to expand into other large Polish cities. Meanwhile, Auchan is alreadyonline in Warsaw and is to revamp its Moscow e-commerce banner. In Russia,X5 Retail Group is planning to expand E5.ru outside Moscow. Franchising islikely to become a more common means of expansion as foreign retailers seek todevelop their networks faster with minimum risk, whereas others will aim to sellunderperforming divisions. Tesco undertook a new expansion strategy in CEEwith its acquisition of Zabka-franchised stores in the Czech Republic, whileCarrefour hopes to open 200 Carrefour Express stores in Poland in 2012 andCOOP EURO in the Czech Republic aims to find a franchisee for its strugglingsupermarkets and neighbourhood stores.The Central and Eastern European retail market is likely to undergo furtherconsolidation. We could see another big shift in the top of our rankings in thenear future as some global players, faced with problems in their domesticmarkets, may decide to sell some operations or even exit from an emergingmarket altogether.
Page 3: Tesco down and Russia's Dixy Group

Top 20 CEE Grocery Retailers: Tesco slips while ... - Planet Retail

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