Supermarkets, large operators are added/ Home appliances slow down, online clothing grows

2024-09-28 22:40:00, Aktualitet CNA

Supermarkets, large operators are added/ Home appliances slow down, online

Retail has been reshaping in recent years, as supermarket chains are expanding, taking over the market from small shops that are closing due to increased competition and weak consumption.

In 2023, the number of operators that have entered the "Monitor 200" ranking has increased, as this segment is expanding rapidly. Two more chains are listed in the 2023 ranking, following an entry in 2022.

Operators report that the drop in prices has been reflected in the increase in consumption, unlike in 2022, when the expansion was mainly led by the increase in the price of products due to high inflation. However, the market feels the consequences of immigration, especially of young people.

In the summer period, the increase in tourists has a positive effect.

Operators claim that both the COVID-19 pandemic and the war in Ukraine have pushed consumers to use supermarkets and maintain the same lifestyle, driving increased consumption of meals at home. On the other hand, the tourists who come are also considered as low cost, who, for saving reasons, tend to consume products in supermarkets.

INSTAT data for the index of retail trade of food, beverages and tobacco in specialized units show that the growth of the market as a whole is stable.

Supermarkets, large operators are added/ Home appliances slow down, online

"Big Market" is the largest supermarket chain in the country, but does not appear on the list of the largest, due to the structure of its operation with separate entities for each point of sale, which leads to reporting with separate stores. The operator had 26.6 billion ALL in revenue in 2023, according to official data from the company, with an increase of 8.7%, on an annual basis.

- The " SPAR Albania" supermarket chain (part of the BALFIN group), reported revenues of 10.7 billion ALL, with a 14.7% year-on-year expansion from the network of stores it manages alone.

At the end of 2023, the "SPAR" network in Albania counts 80 markets, 38 markets operated under direct management by "SPAR Albania" and 42 markets, under management with Franchise partnership, according to the activity report. Including the income from "Spar Franchise", the total annual turnover of SPAR reached 18.8 billion ALL, with an increase of 16% on an annual basis.

The company states that it plans to continue expansion in 2024 and increase investments in technology in order to increase efficiency.

"Conad Albania" reported revenues of almost 4.1 billion ALL, with a decrease of 5.3% compared to the previous year. According to the activity report, the reason for the decline is related to the fact that "Conad" has suffered the contraction of its network of stores, as a part

of supermarkets, which did not fit 100% to its standard, have been closed. In total, 9 points have been closed. According to the company, in the following years, this network contraction will become negligible due to expansion with new stores. The company claims that the Lek - Euro exchange rate (the main purchase currency used by the company) has suffered

decrease and as a result, the price reduction has increased the average purchase, translating it into volume.

"Consumer prices in 2023 have decreased compared to the previous year, due to the change in the exchange rate, but sales values ??have been counterbalanced by the increase in consumption," the annual report states.

"Eco Market Food" , with activity in the field of production, storage and trading of livestock and agricultural food products, reported an income of about 3.4 billion ALL in 2023, with an increase of 5.7% on an annual basis.

"Tirana Cash & Carry" (with the same shareholder as "Big Market") reported 3 billion ALL in revenue, with an increase of 4.3%.

"Diambe" is for the second year in a row on the "Monitor 200" list, recording a strong growth of 40%, to 3.8 billion ALL. This is the second year in a row with over 40% expansion. The market chain implements the "discount" concept in the country and started its activity in 2014.

"Hysen Xhangolli", the company that manages the supermarket chain "Xhangolli", is a new entry in the ranking, after strong growth in 2023. The company reported revenues of 3.7 billion lek, with an expansion of 65%, after growing by 38 % the previous year.

According to the data of the activity report, the expansion has been influenced by the continuous increase in the number of new markets in Tirana. In September 2023, the economic activity has passed from the natural person to the company "Xhangolli Group" sh.pk

"Extramarket" entered the ranking of the 200 largest for the first time. Revenues increased by 15.2%, to 2.6 billion ALL. According to the activity report, the company has made investments in infrastructure and warehouses and has reorganized the distribution, transportation and control of work, enabling the increase of commercial capacities.

"Rossmann-Lala" , the German-Albanian supermarket chain, is proving to be one of the most stable businesses, with double-digit growth year after year. In 2023, its annual turnover reached 6.2 billion ALL, with an expansion of 30.3%. The company has activity in Albania and Kosovo.

"Megatek", the largest DIY/DIY hypermarket in Albania, has reported revenues of 3.2 billion lek in 2023. According to the annual report, "'Megatek' has made substantial improvements in its sales structure, which has led to growth and sustainability of profit".

RETAIL TRADE

Supermarkets, large operators are added/ Home appliances slow down, online

ELECTRIC HOUSEHOLDS, SLOW GROWTH

"Neptun" remains the largest retailer of electrical and electronic products in the country. In 2023, the revenues of "Neptune" were 8.4 billion ALL, with a slight annual expansion of 1.1%.

In the activity report, the company explains that the current network of "Neptun Albania" with 30 stores (12,878 m²) and 19 "Nova" stores covers the whole country.

“Our competitor 'Aza' is covering low-end and mid-range products, 'Globe' is covering mid-range and high-end brands. While, 'Gotech' is mainly offering low and medium level products", the annual report states.

The company claims that it is closely monitoring the behavior of the competition for the new approach to online business.

"Globe Shops" reported revenue of 3 billion ALL, with an expansion of 9.7%. "The year 2023 has been challenging to achieve positive results, considering the difficulties encountered in the market. In addition, the focus has been clear and focused on what the company offers and will bring as innovation in the future.

Being a company with stability in the market is already a factor that characterizes it, but the challenge to develop and expand more makes it undertake even bigger initiatives", the annual report states.

"AZA Elektroštepiake" declared an annual turnover of 2.5 billion ALL, with an increase of 3.6%.

"Go Tech" had an income of 1.87 billion ALL, with an expansion of about 4% on an annual basis. According to the business progress report, the company aims to grow by 10% this year, as a result of the new units in Tirana and the expansion of the franchise system.

Supermarkets, large operators are added/ Home appliances slow down, online

CLOTHING MARKET, ATTENTION TO ONLINE SALES

The clothing trading segment is growing, following the entry and expansion of foreign brands, which are competing in the disorganized market with a high level of informality.

"ITX ALBANIA" , owned by the "Zara Holding BV" group, had revenues of about 6.5 billion ALL, with a 19.5% increase compared to the previous year, being the largest clothing retailer in the country.

The company is constantly increasing the weight of online sales. According to the activity report, for 2023, online sales represent 25% of total sales, compared to 18% in 2022. The amount of online sales translated into Lek is 1.64 billion Lek, compared to 963 million Lek in 2022.

Detailed balance sheet data shows that clothing sales were 6.8 billion ALL, shoes 653 million ALL and -925 million ALL returns and discounts.

" LC Waikiki Retail AL" had an annual turnover in 2022 of 5.56 billion ALL, with an increase of 8.8%, on an annual basis, being ranked in the second largest clothing trading operator in the country. The company is focused on the cheap clothing segment.

"Kid Zone" ("Jumbo") with activity in retail trade (toys, children's clothing, stationery, clothes, decorators and various household furnishings) saw an increase in annual turnover by 3.7%, to 2.76 billion ALL.

In March 2023, the clothing of the "H&M" brand entered the Albanian market, which is the second largest international seller of clothing, after "Inditex", the parent company of "Zara". In Albania, the operator has not had a rapid growth, unlike the activity of "Inditex".

"H & M Hennes & Mauritz Albania LLC" has not declared the balance for the year 2023, but according to preliminary data from Taxes, it has circulated around 600 million ALL, in the first incomplete year of activity.

"In Sport", profiled in the trading of sports shoes and clothing, has continued its growth, approaching the list of the 200 largest. In 2023, the company reported revenues of 2.1 billion ALL, with an expansion of 7.8%.

The administrator of "SPORT VISION GROUP", Edmond Gjyli, claims that "one of the main reasons for the company's growth is its infrastructure, where advanced logistics is distinguished, enabling the timely arrival of products, their storage and quick distribution./ Monitor.al