LZ Retailytics ranks Europe's Top 50 retail stars
Who won the European retail cup in 2018?
French giant Carrefour is still runner-up, but has continued to lose ground to Aldi. UK grocer Tesco, supercharged by the purchase of leading local wholesaler Booker, stays number four.
German supermarket giants Edeka and Rewe thrive in fifth viz. sixth place. With the exception of Metro, whose sales were burdened by currency rates in Mother Russia, all eight German players in the Top 50 league have continued to grow, with five of them among the Top 10.
In an industry that has become, for better or worse, a game of large numbers, this isn't particularly remarkable. Germany is, after all, the biggest market in western Europe. So were there no surprises in all this sexy trade data?
Well, Top-50 sales now total a mind-boggling €1.2 trillion and grew by an average of 2.6 per cent last year – doubtless at the expense of smaller rivals. Despite the fact that Europe covers many different countries and jurisdictions in and outside the EU, its Top 10 retailers now account for more than a third of the whole market (35.2 per cent).
Obviously currency fluctuations distort some of the figures, especially for British, Russian, Swedish and Swiss retailers. But a clear picture emerges as to the winners and losers in European retailing.
Discounters and co-ops thrive
European success machine: An Aldi store in Belgium
Also, French retailer co-operatives Leclerc (+1.5 per cent), Intermarché (2.9 per cent) and Système U (+2.3 per cent) have proved once again that they can beat big, publicly-quoted multiples Auchan (-2.4 per cent), Carrefour (-1.3 per cent) and Casino (+1.3 per cent). With no shareholder dividends or remuneration committees to worry about, independents have a strong sense of customer service and, in the case of Leclerc and Intermarché, aggressive prices. This is obviously a winning combination.
A similar phenomenon is found in Italy where the market-leading consumer co-operative Coop Italia (+2 per cent) and Bologna-based retailer co-operative Conad (+3.2 per cent) beat Auchan Italia (-3 per cent), for instance, hands down.
Hooray for the local heroes
Biedronka: The Polish discount subsdiary of Portuguese retailer Jerónimo Martins has become a genuine local hero
Leading Spanish grocer Mercadona (+4.9 per cent), Spar Austria (+4.3 per cent), Belgian discounter Colruyt (+2.9 per cent) and north-Italian superstore operator Esselunga (+2 per cent) have also done well.
Neither should one forget to mention leading German drugstore operators dm and Rossmann who achieved a plus of 4.2 and 5.4 per cent, respectively, thus rivalling or even beating unwieldy global behemoth Walgreens Boots Alliance (+4.2 per cent).
Brexit doom & gloom?
Meanwhile, all big UK retailers, with the exception of American-owned Asda (-0.8 per cent), made gains in 2018, despite the pre-Brexit doom and gloom prophesied by such illustrious organisations as the British Retail Consortium and EuroCommerce. Better luck this year, perhaps?
Amazon-on-Thames and Rhine...
Beats all the bricks: Amazon is no wandering innocent. The US online colossus is on a relentless march to conquer Old Europe
Where, all disrupted physical store operators should ask themselves, will the Americans be in ten years' time? Or is no one afraid of retail's big, bad wolf?
So, dear reader, have all these figures whetted your appetite for more? Would you like to see the whole ranking table in all its glory, perhaps as a dinky poster on your office wall? Or would you like experts to break the data down into the bits you need? Then we trust you will turn to our friends at LZ Retailytics for further enlightenment...
Podcast. Click arrow to listen to an audio version of the text:
Read in German: "Deutsche Händler prägen Europa" and "Europas Genossen zeigen erneut ihre Vertriebsstärke" by Mike Dawson on pages 36, 37 and 38 of Lebensmittel Zeitung, no. 16, 18.04.2019; the ranking table and commentary are also available online via LZnet (paywall). All data as of February 28, 2019