Large supermarket chains are changing their policy in terms of claiming a larger share of the “neighborhood” turnover, with the franchise model being a catalyst for growth for the coming years.
“The powerful chains are not going to ‘steal’ the turnover from traditional retail, which is an expression often attributed to the industry. We are trying to cooperate with the grocer through the franchise model,” supermarket executives told “N”, adding that “the trend for developing a network of convenience stores from the supermarket perspective is based on the fact that the market’s needs meet those of consumers. Consumers want a more personal service that characterizes neighborhood stores, while seeking the advantages offered by a large chain: such as variety in the code list, offers, and the security behind each company’s brand.”
The “small” retail sector, which has been booming in Greece for decades, is a particularly dynamic field and especially in the last five years, since the Covid-19 crisis, has maintained an upward momentum.
Convenience Stores
“The future of competition in supermarket chains lies in convenience stores. It is the last field in which they can compete while at the same time achieving better profit margins as the store is managed by the franchisee. In this way, the chains are “freed” from significant burdens in operating and payroll costs while at the same time enjoying an additional source of income through franchise fees. Moreover, with the increased operating costs of the last years due to, for example, the energy crisis, the logistics cost, traditional mini markets have showed better profit margin indicators than the strong chains,” Vangelis Foskolos, Retail Sales Director, CGD Retailers of Circana, stated to “N”.
