The Iberian food distribution market, which includes hypermarkets, supermarkets and cash & carry outlets, was worth €100.3 million in 2014, according to a new study.
Food Distribution (Iberian Market) Sectors, published by Portuguese research company Informa D & B, found that this figure represents a 1.7 per cent growth on 2013, when the market was worth €98.6 million (Spain €84.2 million and Portugal €14.4 million).
However, price pressures will continue to threaten the results of the food distribution companies in the short term and prevent a significant improvement of their margins.
The last two years have seen a downward trend in average spending per purchase and the increase in the number of visits to establishments, favouring the growth of sales of local stores, to the detriment of the hypermarkets.
The turnover of supermarkets and self-service outlets grew by 2 per cent in 2013 to €75.670 million. Hypermarkets saw a 3.7 per cent drop in turnover to €17.790 million, with the negative trend more intense in the Spanish market.
Cash and carry outlets have been penalized in recent years by declining demand in the hotel and catering sector, recording cumulative 2013 sales of €5.140 million (-1.2% y/y).
At the end of 2013, there were 34,500 food distribution outlets in Spain and Portugal. Of this number, 590 were hypermarkets (two less than in 2012), of which 485 were located in Spain and the remaining 105 in Portugal.
The top five companies in the Portuguese market generated together about 75 per cent of total sales in 2013, while in Spain the share of the top five operators was around 45 per cent.
The expansion of private labels, the launch of specific brands for certain product families and improving the fresh produce sections are the main trends noted in the sector.
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