Just before the Greek retail market welcomes a new foreign chain, the Russian Mere, which has not happened for several years, the processes for a new concentration cycle are increasing, mainly due to the pressure on small and medium sized chains in the midst of a pandemic.
The threads are, of course, pulled by the 10 big players, who are largely the winners of the Covid-19 situation, as estimates converge that last year will close with an increase of 9-9.5% in total market turnover, against the original forecast of 8-8.5%. This means additional sales of around €1 billion.
So having the «comfort», which came not only from increased consumption but also from shifting turnover, with stand-alone grocery stores and smaller chains losing out, they are stepping up competition and scanning the market for potential opportunities.
The moves of the big players
At a time when the industry is growing rapidly due to the pandemic the official entry of Sklavenitis into the online supermarket market, has created new data. With a huge turnover (estimated to exceed €3.6 billion in 2020 at group level), the chain already controls almost the 30% of the market and is now promoting a new model for the organisation of key areas and sales departments in its stores.
At the same time, the management of AB Vassilopoulos has clearly stated that it is monitoring the market and has «ears and eyes open», while Aristotelis Panteliadis, Managing Director of MAKRO SA, has not ruled out a takeover of an SME, «as long as it fits our needs and operation», as it has stressed.
AB Vassilopoulos, a subsidiary of Dutch group Ahold Delhaize, is to invest around €50 million in 2021. The same amount was invested in 2020, which focused on the development of the network, the renovation of existing stores, distribution centres and digitalisation.
For 2021, the Metro AEBE Group is planning investments of EUR 35 million, which include the expansion of the distribution centers in Thessaloniki and Oinofita, the establishment of 6-8 new stores, as well as the creation of an online store for the needs of wholesale customers currently served through Metro Cash & Carry stores.
Large margin of concentration considers that there is in the supermarket sector and the managing director of the Masoutis supermarket chain, Yannis Masoutis, who says he is «present» if there are opportunities in the market.
For 2021, Masoutis plans to invest EUR 20 million, which will include new stores, mainly in Attica and Patras, as well as renovations of existing stores.
At the same time, reports indicate that and Pente SA (Galaxy supermarket), after the acquisition of the Northern Helladian chain Olla, is in a discussions with two small and medium sized chains and this time from northern Greece.
Autonomous march for Creticus
So then, the predictable withdrawal of ANEDIK Kritikos from the ELOMAS purchasing group, which was formally completed at the end of 2020, was the first «episode» of the «project» that we will watch over the next 3-5 years. It should be noted that Kritikos, implementing its investment and development plan, also made the acquisition of a 49% stake in the subsidiary «CRETAN RETAIL MANAGEMENT CRETAN RETAIL MANAGEMENT PANTOΠΩΛEIA CRETE S.A.», with the distinctive title «C.R.M. - PANTOΠΩΛEIA ΚΡΘIS S.E.», which is based in Malades, Heraklion, Crete, serving more than 140 stores and now owning 100% of its shares.
With the absorption of CRM, Kritikos will operate in 27 prefectures of the country, and will have over 370 stores, 6 distribution centres and more than 2,500 employees. It aims to exceed 400 million euros in turnover by 2021. In 2019, the group's turnover at group level had reached EUR 350 million.
The future of ELOMAS
In ELOMAS, on the other hand, new balances are being formed as it loses significant «firepower», since apart from Kritikos, Bazaar has also left.
The super market chains Kritikos and VAZAR had joined ELOMAS in 2004.
ELOMAS was launched in 1994 on the initiative of Nikos Skoulas, who first envisioned the creation of a purely Greek group in the retail sector.
Initially, 5 medium-sized supermarket chains joined together in a strategic alliance, with the main objectives being the shielding and development of the group's members against the big chains and the upcoming foreign competition, but also the simultaneous support of Greek production and the Greek consumer.
Over time, new members joined, but in recent years many of the cooperating chains were either bought out or closed down.
According to the latest changes to its statutes, the partners were 17 and now 16 without Creticus. Among the members of the group are the chains SY.NKA., Yegos, Andricopoulos, SYNEMPORIO etc.
