The proximity channel is back in fashion in Italy, with 55% of Italians preferring to do their grocery shopping in neighbourhood stores, a new study has found.
According to the research, from the Italian General Confederation of Enterprises (Confcommercio) and the Italian Federation of Food Retailers (FIDA), the success of the proximity channel is due to accessibility and a positive staff experience, as well as new innovations such as online grocery and category specialisation, for example, gourmet ready-to-eat meals.
Changing Demographics
The research reveals that the consumption habits of Italians have undergone a number of profound changes in recent years. These include the progressive aging of the population, an increase in the number of single-person households, and a rise in the number of immigrants.
It found that when these demographic and social trends are taken into account, the estimated 60,000 neighbourhood stores across Italy top the rankings in terms of customer satisfaction.
At the same time, while the proximity channel has performed strongly, hypermarkets have lost around a fifth of their sales over the past decade, while discounters have also abandoned their strict 'hard discount' strategy in favour of improved quality and services.
Large retailers in turn have sought to rediscover the value of proximity, opening smaller stores with a higher level of service in city centres.
Online Channel
A separate study by Nielsen estimates that the e-commerce channel in Italy now accounts for 1.6% of the total retail market, with a turnover of over €800 million.
The number of Italians who visited e-commerce sites specialised in the sale of FMCG products in December 2017 reached 2.4 million, 8% more than in the same period the previous year.
The most popular sites in terms of traffic are those of traditional retailers with 1.1 million users. At the same time, the number of manufacturers who have set up their own online sales channel has grown by 28% compared to 2016.
© 2018 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
