Retailers Lidl and Mere have announced that they are seeking to break into the grocery retail market in Bosnia and Herzegovina.
Both are hoping to succeed by targeting the discounter segment, which has thus far been somewhat underserved by existing players.
The country's modern retail grocery market has for years been dominated by local player Bingo and regional powerhouse Fortenova Group (formerly Agrokor) with its Konzum supermarket and Mercator hypermarket banners.
Other participants with a significant share include smaller local players like Amko Komerc, Tropic and Best.
Lidl Plots Entry
After several unsuccessful attempts in the past, Lidl is now eyeing potential locations across Bosnia and Herzegovina, ahead of commencing its activities in the Balkan country towards the end of 2022 at the earliest.
Contributing to the renewed interest of Lidl in Bosnia and Herzegovina is the lack of competition in the discounter segment, the low purchase power of consumers, and the successful results obtained in neighbouring Serbia, where it has opened 51 supermarkets since launching operations there in October 2018.
According to local media reports, Lidl is seeking locations in cities/towns with a population of at least 30,000 inhabitants, with the capital Sarajevo, as well as Banja Luka, Živinica and Brčko all being mentioned.
Local news outlet Capital reported that Lidl has started hiring in Bosnia and Herzegovina and some are already undergoing training in the retailer’s stores in Serbia and Croatia.
Mere Eyes Up The Market
Joining Lidl in the discount segment will be Russia’s Torgservis, which is planning to open several dozen outlets in Bosnia and Herzegovina under its rapidly-growing Mere banner.
According to daily Dnevni Avaz, the first stores will be opened in Sarajevo, Tuzla, Zenica, Mostar, Banja Luka, as well as in other cities across Bosnia and Herzegovina.
Like Lidl, the arrival in of Mere in Bosnia and Herzegovina follows the successful launch in Serbia, where Torgservis arrived last December and has since opened seven stores under the Mere and Svetofor banners.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
