The Croatian grocery retail sector achieved revenues of over HRK 40 billion (€5.3 billion) in 2020, which is 0.8% higher than in the previous year, new data has shown.
This indicates a slowdown of the market, as the growth in 2019 amounted to 6%, according to the annual report of the Agency for the Protection of Market Competition (AZTN).
The report analysed 51 active grocery retailers, which together boast 4,707 outlets (+14 on 2019) and a total net sales area of 1.44 million square metres (-1%).
Retailers In Growth
Of the 51 companies, 30 saw revenue growth during the period, led by local player Plodine. Other players registering strong growth include Lonia Trgovina (as a result of the takeover of Sloga Podravska Trgovina with 70 stores) and Studenac (which acquired 80 Sonik stores).
Konzum Plus (part of Fortenova Group) continues to hold the position of market leader, with 608 stores and a 20-30% market share, slightly down on 2019.
Schwarz Group members Lidl and Kaufland continued their positive growth trend, although this was less pronounced than in 2019. Lidl's market share was between 10% and 20% with 102 stores, while Kaufland had between 5% and 10% share and operated 40 stores.
Four retailers (Plodine, Spar, Tommy and Studenac) follow, each with 5-10% market share. The top 10 also includes Studenac, K.T.C., NTL and Lonia Trgovina, all with market shares below 5%.
Top Ten Retailers
The market share of the top ten retailers dropped slightly, from 83.4% to 82.7%, but the share of the top five increased and they account for just under two-thirds of the total.
There is one new player on the market, Eurospin Hrvatska, which opened its first outlet in Zadar in August 2020, and ended the year with seven stores.
Although Croatian consumers continued to shop mostly in supermarkets, their share in total sales dropped from 49.3% to 48.7%. However, two store formats saw growth in the period – small neighbourhood stores (from 8% to 8.6%) and hypermarkets (from 21.7% to 22%).
Online grocery sales are still not significant in terms of share of overall revenues, with Konzum Plus emerging as the leader in this segment, although only six retailers submitted data on online sales.
Some 14 out of 54 surveyed retailers had a customer loyalty program, with Konzum Plus having the most members, followed by Kaufland.
Handling The COVID Crisis
Elsewhere, in its annual analysis of financial data from retailers, the Croatian Financial Agency (FINA) confirmed that the major players are coping well with the COVID-19 pandemic, reports T-Portal.
Konzum Plus was top in terms of revenue, with HRK 10 billion (€1.3 billion), up 31% on 2019), but in the red with losses of HRK 278 million (€37 million), FINA's study found.
Lidl was second, recording HRK 6 billion (€800 million) in revenue, up 3.24%, and a pre-tax profit of HRK 344.7 million (€45.9 million), down 20.7% year-on-year.
It was followed by SPAR, with revenues of HRK 4.9 billion (€653 million), an annual increase of 3.26%, and a loss of HRK 44.7 million (€5.9 million), an improvement of 69%.
Fourth was Plodine with revenues of HRK 4.5 billion (+3.4%) and a net profit of HRK 198.5 million (+20.6%).
Kaufland placed fifth with HRK 3.9 billion in revenues (+0.82%) and a net loss of HRK 5.6 million (-109%).
Split-based Tommy ended the year with HRK 3.1 billion in revenues (+0.77%), but profits dipped 64% to HRK 54 million.
The rest of the top 10 ranking includes non-food retailers, with the exception of ninth-placed Studenac, which has seen strong growth following the arrival of new owner (Polish fund Enterprise Investors) and a series of M&A operations (Istarski Supermarketi and Sonik).
Studenac ended 2020 with revenues of HRK 1.88 billion (+18.5%) and a net profit of HRK 9.7 million (-69%).
© 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
