The challenges faced by Croatian food consortium Agrokor and its retail unit Konzum have improved prospects for other players in the grocery retail sector in Bosnia and Herzegovina, a study has found.
A study by Euromonitor International indicated that Bingo has benefitted the most from its rival's difficulties, with the chain becoming the new market leader, a position it achieved at the end of 2017.
Currently, seven out of the top ten retailers in Bosnia and Herzegovina are domestically-owned, up from five out of ten a few years ago.
Market Trends
The main trends during the review period, Euromonitor International revealed, were growth in the average store size, non-grocery sales growing faster than grocery sales, and higher growth of non-store retailing compared to store-based retailing.
Overall retail sales continued to record growth, as the rate of consolidation accelerated across the industry.
Bingo Expansion
In December 2017, Bingo opened the Bingo Plus supermarket in the Alta Shopping Centre, taking its store count to 187 in the country.
The 1,000 square metre store features a wide selection of meat, dairy products, quality fruit and vegetables and ready-to-eat dishes.
The same month also saw the opening of the company’s 22nd store of the mojMarket neighbourhood store format in Banja Luka.
Another local grocery retailer registering strong growth is Tropic, which opened new stores in Prijedor, Bijeljina and Bratunac at the end of 2017, taking its total to 56.
In Prijedor, Tropic introduced a completely new shopping concept, combining a supermarket, market and restaurant into a single space.
Robot Pushes Ahead
Elsewhere, Sarajevo-based Robot has announced a public invitation to purchase real estate (land to build shopping centers or already built property) ranging from 1,000 to 5,000 square metres.
The company, which is one of the five leading retailers in the country, operates 26 shopping centers throughout Bosnia and Herzegovina. Its latest opening was a 6,000 square metre hypermarket in Velika Kladuša.
Speaking to local portal eKapija, a company spokesperson said that about BAM 60 million (€30 million) will be invested by the company towards opening some 20-30 stores over the next three years.
Three new locations have already been secured, in Breza, Banovići and Novi Travnik, where construction work will start in the next three months.
Finally, retailer and wholesaler Fructa Trade opened its latest store December, in the Petrićevac district of Banja Luka, taking its total to 33 stores. It's stores operate under the Hiper Kort or Super Kort banners, and the group also operates an outlet in neighbouring Serbia.
© 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
