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Independent Grocery Outlets Were Unable to Compete in the Price Wars Initiated by Larger Grocery Retailers Chains in the Belgian Market.


DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c42909) has announced the addition of Retailing in Belgium to their offering.

Our Retailing in Belgium report offers insight into key trends and developments affecting the national retailing industry. Retail sales by type of outlet (2000-2005), including non-store retailers such as internet retailers, help you assess how the market is structured and how it is evolving. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of specific retail sectors and forecasts for the future (to 2010).

Sector coverage: grocery retailers (discounters, convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. ), non-grocery retailers (health and beauty retailers), non-store retailing (vending, home shopping Home Shopping commonly refers to the electronic retailing / home shopping channels industry, which includes such billion dollar companies as HSN, QVC, eBay, ShopNBC, Buy.com, and Amazon.com. , internet retailing, direct selling Direct selling is the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls. It is sometimes also considered to be a sale that does not utilize a "middle man" such as a retail outlets, distributors or brokers. )

Why buy this report?

* Get insight into trends in retail sales performance (historic and forecasts)

* Pinpoint growth sectors and trends and identify factors driving change

* Understand the competitive environment and the market's major players

* Use Our research as a starting point Noun 1. starting point - earliest limiting point
terminus a quo

commencement, get-go, offset, outset, showtime, starting time, beginning, start, kickoff, first - the time at which something is supposed to begin; "they got an early start"; "she knew from the
 for exploring new business opportunities

With a network of over 600 analysts worldwide we have a unique capability to develop reliable information resources (1) The data and information assets of an organization, department or unit. See data administration.

(2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT.
 to help drive informed strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. ..

Topics Covered

1. EXECUTIVE SUMMARY

2. OPERATING ENVIRONMENT In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system.  

* 2.1 Government Policies

* 2.2 Legislation

* 2.3 Opening Hours opening hours open nplheures fpl d'ouverture

opening hours open nplÖffnungszeiten pl 
 

* 2.4 Retailing Landscape

* 2.5 Employment in Retailing

3. RETAILING: RETAIL SALES

* 3.1 Market Performance

4. RETAILING: COMPETITIVE ENVIRONMENT

- 4.1 Leading Retailers

* 4.2 Recent Mergers and Acquisitions

* 4.3 Concessions

5. PRIVATE LABEL

* 5.1 Retailer Strategies

6. RETAILING: FORECAST MARKET PERFORMANCE

7. MARKET PERFORMANCE: GROCERY RETAILERS

* 7.1 Overview

* 7.2 Focus Sector: Discounters

* 7.3 Focus Sector: Convenience Stores

8. MARKET PERFORMANCE: NON-GROCERY RETAILERS

* 8.1 Overview

* 8.2 Focus Sector: Health and Beauty Retailers

9. NON-STORE RETAILING: VENDING

10. NON-STORE RETAILING: HOMESHOPPING

11. NON-STORE RETAILING: INTERNET RETAILING

12. NON-STORE RETAILING: DIRECT SELLING

Summary

Leading players consolidate their positions

Belgian retailing sales grew by 2% in current value terms in 2005, continuing the solid performance shown throughout the review period. Internet retailing sales showed the most dynamic increase in terms of current value growth, as more and more Belgians came to appreciate the convenience of this method of shopping. Leading grocery retailers players Carrefour Belgium NV/SA, Delhaize Group Delhaize Group (Euronext: DELB, NYSE: DEG) is a food retailer headquartered in Belgium which operates in 10 countries and on three continents. Delhaize Group was founded in Belgium in 1867.  NV and Etn Franz Colruyt were also the leading players in the retailing market overall. All three consolidated their market value shares at the expense of smaller retail chains and independent players during the review period.

Price competition forces grocery retailers players to develop non-food offerings

Grocery retailers chains continued to develop their non-food offerings in 2005, as increasing price competition in food retailing forced them to seek other avenues for boosting current value sales. Clothing and footwear, health and beauty, durable goods durable goods

Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables.
 and homeware products were all offered by larger grocery retailers chains during the review period. In particular, many chains increased their focus on cheaper durable goods products such as portable TVs and DVD players A stand-alone device that plays DVDs. It contains a DVD drive and the electronics to decode the digital video. The device may play only manufactured DVDs, or it may be able to play DVD-R, DVD-RW and DVD+RW discs. DVD players are cabled to a TV or home theater system for display. . Products such as these are well suited to sales in grocery retailers outlets, as they are broadly familiar to consumers and require little specialist knowledge on the part of staff. Moreover, cost prices for such products declined steadily throughout the review period.

Discounters and convenience stores are most dynamic within grocery retailers

Discounters continued to enjoy growth in current value sales and unit numbers in 2005, reflecting the increasing satisfaction of Belgian consumers with the quality of products sold through discounters outlets. Current value growth slowed considerably in 2005 however, due to greater price competition and the threat of new entrants in the form of larger chained operators. The entry of larger chains also contributed to the positive development of convenience stores, which showed the most dynamic growth in current value sales and unit numbers within grocery retailers overall in 2005. Busier lifestyles ensured that an increasing number of Belgian consumers appreciated convenience stores outlets towards the end of the review period, particularly those in travel locations such as railway stations The following is a list of railway stations (also called train stations) that is indexed by country. :Further information: List of IATA-indexed train stations Africa
Morocco
  • Casablanca
 and petrol stations outlets.

Simplification of retailing license application procedure is broadly welcomed

The retailing license application procedure was simplified in 2005, reducing the time players must wait before building new outlets or extending existing ones. The application period for larger projects was halved halve  
tr.v. halved, halv·ing, halves
1. To divide (something) into two equal portions or parts.

2. To lessen or reduce by half: halved the recipe to serve two.

3.
 from 180 to 90 days, while the waiting time for smaller projects was reduced to 50 days. If the government does not react within the stipulated time period, projects are automatically given a favourable appraisal. During the review period local taxes in Belgium increased by an average of 16% annually. This caused some anxiety among retailing players, who passed the tax hikes onto consumers in the form of higher unit prices for products. On average, retailing outlets in Belgium were open for 67 hours per week in 2005, 11 hours more than the European average. It is likely that the government will take further steps to reduce the administrative barriers facing new entrants to Belgian retailing over the forecast period.

Independent players struggle to resist the advance of large retail chains

Belgian retailing became increasingly concentrated during the review period, as numerous small and specialist outlets were replaced fewer and larger chained outlets. The greater importance of branding, distribution systems and higher economies of scale all placed a heavy strain on independent players in particular, leading to the closure of a considerable number of independent retail outlets retail outlet npunto de venta

retail outlet npoint m de vente

retail outlet retail n
. Towards the end of the review period, many independent grocers outlets were unable to compete in the price wars initiated by larger grocery retailers chains.

Private label products play a more important role in grocery retailers

Competition between hypermarkets and supermarkets chains drove prices for branded food and drink products downwards during the review period. As a result, the share of grocery retailers current value sales accounted for by private label products increased considerably. When first introduced in Belgium, private label products were positioned very distinctly from branded products. They were marketed primarily in terms of economy prices, with plain white packaging reflecting their low end positioning. In 2005 however, larger supermarkets and hypermarkets chains offered their own private label product ranges in attractive and eye-catching packaging. This was a clear imitation imitation, in music, a device of counterpoint wherein a phrase or motive is employed successively in more than one voice. The imitation may be exact, the same intervals being repeated at the same or different pitches, or it may be free, in which case numerous types  of the strategy pursued by discounters chains like Aldi and Lidl, which offer ranges consisting almost entirely of private label products. Market research during the review period found that Belgian consumers had no reservations about buying private label products, with many considering them to be of equal quality to branded products. In 2005, this appreciation was reflected in the fact that 33% of the total product assortment carried by leading player Carrefour consisted of private label products.

Trend towards concession partnerships will continue over the forecast period

Whilst concession partnerships remained a relatively new phenomenon within Belgian retailing in 2005, an agreement between Q8 and Shop 'n Go suggests that they will play a more important role over the forecast period. Trade sources believe that the alliance of Q8 and Shop 'n Go is a sign of things to come, one that should be viewed in the context of legislative changes to restrictions on opening hours made during the review period. The implication is that concession partnerships represent the most cost efficient method of capitalising on these legislative changes, as they offer an inexpensive method of attracting new customers while allowing both parties to focus on their respective core businesses.

Internet retailing is most dynamic within non-store retailing as homeshopping performs poorly

Internet retailing showed the most dynamic development within non-store retailing during the review period, with current value sales increasing at a CAGR CAGR

See: Compound Annual Growth Rate
 of 5%. In 2005, current value growth was boosted significantly by an increase in purchases of consumer electronics through internet retailing companies. Homeshopping meanwhile registered the worst performance within non-store retailing between 2000 and 2005, with current value sales declining at a CAGR of 2%.

Companies Mentioned Include:

- Aldi Group - Anton Schlecker Anton Schlecker (born October 28, 1944 in Ehingen) is a German billionaire, founder and owner of the Schlecker drug store chain in Germany.

He is married to Christa Schlecker and has two children, Lars Schlecker and Meike Schlecker, both active in the management of the
 as - AS Watson (Health & Beauty Europe) - Blokker BV - Brantano NV - C & A BelgiE1/2 SA - Carrefour Belgium NV/SA - Cora BelgiE1/2 NV - Damart, TSD TSD Tay-Sachs disease.  SA - Delhaize Group NV - Etam SA - Etn Franz Colruyt NV - Gamma BelgiE1/2 SA - HAL Hal: see Halle, Belgium.
hal

In Sufism, a state of mind reached from time to time by mystics during their journey toward God. The ahwal (plural of hal) are God-given graces that appear when a soul is purified of its attachments to the material world.
 Holding NV - Hennes & Mauritz (H&M) Belgium SA - IKEA IKEA Ingvar Kamprad Elmtaryd Agunnaryd (Swedish home furnishings retailer founder's initials and location)  Belgium NV - INDITEX - Industria de DiseEo Textil - ITM ITM

See: In-the-money
 Belgium SA - Krefel NV - Lagardere SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal.  - Lidl BelgiE1/2 GmbH & Co KG - Media Markt-Saturn Belgium NV - Metro Group - Multipharma Groupe SC - New Vanden Borre NV - Optichains BV - Pinault-Printemps-Redoute Group - Royal Vendex KBB KBB Kelley Blue Book
KBB Koninklijke Bijenkorf Beheer
KBB Kulak Burun Bogaz (Turkish: Ear, Nose & Throat)
KBB Kelly Bell Band
KBB Kim Basinger Band
KBB Kentucky Backroads Band (band) 
 NV - Spar Retail NV - Spector Photo Group - Yves Rocher Benelux NV SA - ZNU NV

For more information visit http://www.researchandmarkets.com/reports/c42909
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Oct 2, 2006
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