Over the past decade, approximately 10,000 small grocery stores in Bulgaria have closed, primarily due to competition from larger, more modern retailers.
The data was presented at a meeting in Sofia, hosted by Metro Cash & Carry, for around 250 independent retailers, as reported by BTA.
The business-to-business wholesaler, recognising this issue, has initiated a programme to support these small retailers in modernising their operations.
While the overall market has grown, independent stores – often family-run businesses – struggle to compete on factors like store appearance, promotions, and operational flexibility.
According to Metro, Bulgaria has lost an average of 2.5 small, independent grocery stores per day over the past ten years. Dimitar Vutkov, director of Metro’s franchising department, described this as a serious problem requiring immediate action.
While the closure rate of independent grocery stores has slowed in the last four years, smaller stores (40-50 square metres) are still frequently closing.
Network Expansion
Conversely, larger, more modern retailers have expanded their network by 280 stores in Bulgaria over the past decade, indicating a shift in the market.
Despite inflation, Bulgaria’s fast-moving consumer goods market has grown to BGN 15 billion (€7.7 billion), with increased sales volume.
However, the average small independent retailer only generates BGN 2,300 (€1,176) in revenue, which is insufficient for investment, wages and profit.
Interestingly, so-called traditional retail (small shops) outperformed modern retail in the third quarter of 2024, suggesting a consumer shift back towards small stores.
My Store Programme
Metro’s initiative to renovate 50 struggling small shops, announced in March, has expanded beyond its initial goals. Its franchising programme, My Store, has already opened 58 locations, exceeding expectations and aiming for 200 in 2025, 470 in 2026, and 800 by 2027.
The success of independent retailers hinges on factors like location (often unchangeable), store appearance, promotions, and service quality.
Metro’s programme addresses these challenges by providing financial support and branding (My Store) to help these businesses upgrade their operations.
The wholesale giant’s experts advise small shops to focus on fresh produce, comprising over half of consumer purchases, and to prioritise sales growth, rather than solely minimising costs.
It also added that these businesses currently spend too much time sourcing inexpensive products.
