Supermarkets in Ukraine

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How grocery chains have weathered the crisis

The rapid development of commercial networks this year is easily explained. Salaries Ukrainians grow faster. If the entire 2011 year, they have grown on average by 8.7%, in January-August this year has jumped by 15.3% compared with the same period of the last (data Gosstat). And all this happened against a background of low inflation rates.
But how to explain the rapid growth of grocery chains in the midst of the crisis in late 2008?
Crisis did not notice?
The Fastest growing company was “Eurotech”. If at the end of 2008 it consisted of only nine points, but now it has been 69. That is an increase of almost 767%! Keep pace with other companies, as is evident from the graphs.
“The market is too saturated” – explains the reason for the growth of Igor Guglya, director of GT Partners Ukraine. According to him, in recent years, retailers have started to actively gain medium and small cities, where there is an acute shortage of modern shops. While there remains a city where there is no network of grocery stores.
Moreover, during the crisis, prices for rental properties greatly subsided, and traders it easy to agree on the best places for their stores.
Another reason for the rapid growth of networks the inertia of Ukrainian bureaucracy. Plans before the crisis continued to open stores in the crisis, when incomes were reduced (in 2009 wages fell more than 9%).
“The opening of new shopping centers – a long-term process, for example, in” METRO Cash & Carry Ukraine “only store building can last up to 3 months, but before construction must still find a building plot just to get all the necessary documents, and etc. Therefore, to stop the process of expansion at some point for the company does not make economic sense, “- says Anna Kurbatova, Communications Manager” METRO Cash & Carry Ukraine “.
Less is more
But we cannot say that the crisis in general had no effect on traders. Owning retailers had to give up a huge store in favor for more compact stores.
Like mushrooms after the rain began to appear small “convenience stores” and discounters with cheap products, but limited selection of goods.
“During the crisis, mainly developed network of small formats” – agrees Anna Kurbatova. Its network began in 2011 to develop the small shops to 2 thousand square meters with a range of about three thousand items, called “METRO Base.”
Before it stores “Metro” in Ukraine existed only in standard area of 16 thousand square meters and with a range of 30 thousand items. Thanks to this new approach, the company managed to open stores in relatively small cities – Kremenchug, Ternopol, Kirovograd and Lutsk.
For cities is a great investment, because even in the low-price shop area of about 1 thousand square meters have to invest about $ 1.8-2.7 million (if you buy, not rent a property), explains Igor Guglya from GT Partners Ukraine. The “convenience stores” have less to invest. For example, the network of “Nash Kray” is now developing a network of express minimarkets area of 50-100 square meters. If you rent a room, you can open a new shop even $ 23,000.
“In the usual” shop at home “does not have its plants for the production of food (bread, cooking), in contrast to the supermarkets. In each store, our network format “shop at home” BK “Express” has its own mini-bakery, the area allows. Low level of staff, although their level of training above. In small shops seller and cashier and bookkeeper are able to accept products, and put to the position, “- says about the nuances of this business, Dmitry Kashirin, commercial director of “Fudmarket “(included in” Retail Group “, which is developing a network of” Great Kishenya “,TC” Alta Center “,” Equator “,” Velmart “). Find design ideas for your home on Lushome.club.
Opening of the same large size – Hypermarket – associated with the construction of a single building. For this it is necessary to acquire the land and take a lot of coordination, because the volume of investment can range from $ 5 (the most compact hypermarket) to $ 20 million (a huge shop).

Where Ukrainians and the Europeans prefer to buy food? – research

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       The company GfK Ukraine, the market leader in market research in Ukraine, said that hypermarkets are becoming more popular in Central and Eastern Europe. However, their share in Ukraine amounts to only 8% – Ukrainians prefer to shop in supermarkets. Interesting, among the most important characteristics of shopping Europeans selected discounts and special offers, Ukrainians prefer proximity and low prices. This is evidenced by the results of investigations Shopping Monitor CEE 2012, conducted in October-November 2011 in 10 countries in Central and Eastern Europe.
Europeans prefer hypermarkets, Ukrainians – supermarkets
Most of the Europeans choose hypermarkets to make purchases of food and nonfood products: in Romania of 54%, in the Czech Republic – 44%, in Poland, Bosnia and Herzegovina, Hungary – just under half of respondents. In Ukraine, as well as in Serbia, the share of hypermarkets is only 8%. Supermarkets are popular in Ukraine, where 45% of respondents do the bulk of purchases of consumer goods. The same percentage of respondents select supermarkets in Bosnia and Herzegovina, in Slovenia this figure stood at 47%.
Who buys the food and daily goods in bazaars?
The number of respondents, who prefer unorganized trade by purchasing consumer goods in all the countries of Central and Eastern European countries, is insignificant, except Ukraine and Romania. Percentage of Ukrainians, who prefer markets, although it is rapidly declining in recent years (by 7 percentage points over the past 2 years), is still the largest in the region – 15%. Among Romanians these respondents are 8%.
Europeans appreciate wide assortment
On the question, why respondent chose particular store, the majority of respondents in all countries, called the low prices, wide product range and of course, the availability of discounts and sales. Ukrainians are more than people from other countries of region appreciate the proximity of the store (about 70% chose this option), as well as low prices for some goods (about 24%). At the same time, much quieter is their relation to characteristics such as a wide range of products, discounts and sales, courteous staff, working hours and the ability to go shopping by car (lower or one of the lowest figures among the countries of the region).
Only 11% of Ukrainians often go shopping by car, some more 12% use a car when planning major purchases. This is the lowest result among the countries of Central and Eastern Europe, where a car for making purchases using a total of 45% (Bulgaria) up to 68% (Bosnia and Herzegovina).
Distribution of promotional materials retailers
In countries such as Romania, Czech Republic, Slovakia, Hungary, Poland and Slovenia at least 60% of respondents read flyers, which they get from retailers, from 11% (Poland) to 56% (Romania) respondents made purchase in accordance with these flyers.
Half of Ukrainians do not receive promotional material retailers at all. Only 9% of respondents in Ukraine (the same figure in Bosnia and Herzegovina) receive materials, read them and make purchases in accordance with it. Retailers are less active in Serbia, where 69% of respondents did not receive materials at all, and just 3% receive, read and do purchase according to it.
Study of Shopping Monitor 2012: Background information
Shopping Monitor 2012 study conducted in October-November 2011 in ten countries of Central and Eastern Europe – Bulgaria, Bosnia and Herzegovina, Poland, Romania, Serbia, Slovakia, Slovenia, Hungary, Ukraine and the Czech Republic. Respondent – a person who is responsible for daily purchases of food and nonfood consumer goods in the household. During the investigation of Shopping Monitor 2012 were interviewed from 649 (Poland) up to 1060 (Ukraine) respondents. The method of the inquiry is a personal interview at home of the respondent or a telephone interview.
According to the materials gfk.ua