Prepared for: IGD 2014

Transcription

1 Prepared for:

2 What is this presentation s aim and what is covered? What is the aim of the presentation? This presentation is to provide an overview of the largest European retail alliances in 04, their membership as they stood at the end of 04, how this has changed over time, and their collective buying power over time. Section Methodology and coverage what is included in the collective buying power over time information and how does IGD generate its market shares? Section Setting the scene putting in context who the largest European grocery retail alliances are, how they compare and when they were founded. Section 3 Information by grocery retail alliance by alliance we break out how they have changed over time by member and geographic coverage, their collective buying power over time and the market share and ranking information for alliances key members in their home markets. Source: IGD Research

3 Contents 3 Methodology and coverage Slide 5 Coverage which countries are included in Europe and what does the sales represent? Slide 6 Methodology how does IGD calculate its grocery market shares? Setting the scene Slide 7 Who are the main international grocery retail alliances? Slide 8 Slides 9 to : what do they cover? Slide 9 When were the main international grocery retail alliances established? Slide 0 How have the grocery retail alliances changed over time? Slide How did the grocery retail alliances rank in Europe in 03? Information by grocery retail alliance By alliance we provide: - An overview in 04 - How has it membership changed? - How has its geographical coverage changed? - Collective buying power over time - Membership market share and ranking of key retailers in home markets* Slides to 6 Alidis Slides 7 to 4 AMS Slides 5 to 30 EMD Slides 3 to 36 Coopernic Slides 37 to 40 CORE Source: IGD Research. * Please note that this is not present for CORE.

4 Methodology and coverage Coverage Sales data for collective buying power over time includes only those sales generated in Europe. Therefore, sales generated by retailers who have operations outside of Europe are excluded. 4 For example, Casino in 04 operates in France, Argentina, Belgium, Brazil, Colombia, Thailand, Uruguay and Vietnam and has franchise agreements for the expansion of its store-based brands in the Middle East and North Africa. For the buying power over time data, only those sales generated in France and Belgium would be accounted for. Europe includes the following countries: Albania Estonia Luxembourg Russia Austria Finland Macedonia (FYROM) Serbia Belarus France Malta Slovakia Belgium Germany Moldova Slovenia Bosnia-Herzegovina Greece Montenegro Spain Bulgaria Hungary Netherlands Sweden Croatia Ireland Norway Switzerland Cyprus Italy Poland Turkey Czech Republic Latvia Portugal Ukraine Denmark Lithuania Romania United Kingdom Source: IGD Research

5 Methodology and coverage IGD market share methodology 5 This slide only relates to the information provided on slides 6,, 3, 4, 30, 35 and 36 IGD has a single, universal methodology to enable market share comparison and consolidation levels between countries. It is calculated by comparing retailers sales from grocery formats with IGD s grocery retail market size IGD defines the grocery retail market as all food, drink and non-food products (e.g. health & beauty, pet care, apparel, home improvement) sold through all retail outlets selling predominantly food in a given country This definition includes both modern retail formats such supermarkets and hypermarkets, and traditional retail formats such as open air markets and traditional food stores such as bakers. However, it excludes cash & carry operations and drugstores/pharmacies and sales tax IGD market sizes are top down, derived from national statistical bodies wherever possible. In all other cases, the figures published in this report represent IGD estimates and are based on a consistent methodology and knowledge of local markets For each retailer, the turnover used is total sales from grocery format, and therefore excludes non-food formats (such as home improvement, electrical stores, department stores etc.). For its grocery market sizes and shares IGD excludes cash and carry formats and drugstores/pharmacies from this measure, to ensure the data sources are comparable and sales are not double counted:. Retail turnover is excluding VAT. Retail turnover is excluding non-food formats (e.g. furniture, electrical stores etc.) 3. Cash and carry operations are excluded 4. Where known, we have subtracted the Cash & Carry operations of players such as Carrefour and Rewe to use a pure grocery retail estimate of turnover IGD s market shares differ from panel-based or till-roll markets shares (e.g. from ACNielsen, TNS or IRI) due to the different methodologies; the latter are based on limited categories/retailers Source: IGD Research

6 Setting the scene Who are the main international grocery retail alliances? Created by two independent retailers in 003, Alidis was expanded in 005 with the addition of a third member. The Geneva-based alliance is focused on negotiating international agreements, developing skill sharing, harmonising working methods and as a forum for exchanging information. AMS was founded in 988 and has 4 members across 5 countries. The grocery retail alliance s initial focus was on sharing European buying activities among retailers (private labels, store equipment). In 00 the ACP (AMS cooperation programme) was initiated by some AMS members to negotiate with international suppliers on service agreements, in line with other European retail alliances. AMS is based in Amsterdam. EMD was founded in 989 by national grocery retail alliances in Austria, France, Germany, Italy, Netherlands, Portugal and Spain. Recruitment has extended to 5 members, including individual retailers, operating across 6 countries from Switzerland. As with AMS, the alliance s initial purpose was focused on buying (equipment, private label) but has since extended to sell service agreements to international suppliers. Created in 005 in Brussels by Leclerc and Conad to negotiate international service agreements with suppliers. Extended membership in 006 to three additional independent retailers. In 03 four members left the alliance. Two new retailers joined in October CORE Created in Brussels in October 03 by four members of Coopernic for the same purpose: negotiation international service agreements with suppliers, starting January 04. Source: IGD Research. Please note: data and membership is right as of December 04. Changes in membership can occur and these would not be reflected if they happened after December 04.

7 Setting the scene Slides 9 to : what do they cover? 7 The next three slides provide insight on when the grocery retail alliances were established, how they have evolved over time and their size in 04, in revenue terms, relative to some of Europe s largest retailers. Slide 9: When were the main international grocery retail alliances established? By grocery retail alliance we set out when they were established, who their founder members were and how the number of members has changed since each alliance s inception. Slide 0: How have the grocery retail alliances changed over time? Grocery retail alliances are organic organisations, with members able to join and leave relatively easily. As a result, membership of the key alliances has changed a great deal since 000. On this slide we graphically show which retailers have joined and exited each alliance and, if they have moved to another, which grocery retail alliance they have moved to. Slide : How did the grocery retail alliances rank in Europe in 03? Given that grocery retail alliances collective buying power is a combination of its members, the simplest, and perhaps the only, means of gauging their potential negotiating power is to aggregate the consumer turnover of its members. In this chart we provide an overview for 03 for the four alliances that existed during the year Alidis, AMS, EMD and Coopernic and how their collective buying power compares to the turnover of some of the region s largest by sales retailers. Source: IGD Research

8 Setting the scene When were the main international grocery retail alliances established? 8 GROCERY RETAIL ALLIANCE? WHEN WERE THEY ESTABLIHSED? WHO WERE THE FOUNDER MEMBERS? HOW HAS NUM. OF MEMBERS CHANGED? HOW HAS COUNTRY PRESENCE CHANGED? 003 From to 3 From 9 to From 7 to 4 From 0 to From 4 to 5 From 8 to From to 5 then 3 From 0 to CORE Source: IGD Research

9 Setting the scene How have grocery retail alliances changed over time? 9 CORE Source: IGD Research. Key: Retailer leaves the grocery retail alliance Retailer joins the grocery retail alliance

10 Setting the scene How did the grocery retail alliances rank in Europe in 03? 0 European buying power grocery activities only 03 ( bn) The simplest, and perhaps the only, means of gauging the potential negotiating power of any grocery retail alliance is to aggregate the potential consumer turnover of its members, as shown below. For grocery retail alliances Alidis, AMS, EMD, Coopernic and CORE grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Sales are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. For other companies, sales are total revenue figures and so include cash & carry etc. Please note: Coopernic collapsed in Sept. 03 after Leclerc left the grocery retail alliance. The data shows it as if it existed for the whole of 03.

11 Alidis An overview in 04 MEMBERS 3 GEOGRAPHICAL COVERAGE 9* BE BA FR DE ME PL PT RS RS SALES IN EUROPE ( bn) (f) STORE NUMBERS IN EUROPE ,900 * Please note Intermarché will not operate in Bosnia-Herzegovina in 05 following the sale of its stores in the market. For 05 Alidis will operate in eight markets. Sales and store numbers are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

12 How has it membership changed? Source: IGD Research. Key: Retailer leaves the grocery retail alliance Retailer joins the grocery retail alliance

13 How has its geographical coverage changed? 3 BE BA FR DE PL PT RO RS ME RO BA ES Source: IGD Research. Key: Grocery retail alliance leaves a market Grocery retail alliance enters a market

14 Collective buying power over time 4 Collective buying power grew by CAGR 3.% between 006 and 05. Sales are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

15 Membership market share and ranking of key retailers in home markets 5 Key: Ranking in home market Market share in home market Market share gain/loss* 6.3% 6.6% 7.4% 8.3% 8.6% 8.8% 8.9% 9.0% 9.% % 5.8% 5.8% 5.7% 5.6% 5.6% 5.5% 5.5% 5.4% % 0.3% 0.6%.%.5%.8%.%.4%.4% (f) Source: IGD Research. * Market share gain/loss timeframes depend on a retailer s membership of the grocery retail alliance.

16 AMS An overview in 04 6 MEMBERS* 4 GEOGRAPHICAL COVERAGE BE BA CZ DK EE FI FR DE GR IS IT LV LT 5 LU NL NO PL PT RO RU RS ES SE CH GB SALES IN EUROPE ( bn) (f) STORE NUMBERS IN EUROPE ,000 * Please note Delhaize and Système U will leave AMS from January 05. Sales and store numbers are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

17 Existing members and markets in AMS was established in 988 and so had a number of companies who were already members before 000. The companies, when they joined and the markets that they cover are detailed below. Number of members in 000: 9 Number of markets retail alliance was present in 000: 7 MEMBERS YEAR THEY JOINED MARKETS 988 CZ SK NL 988 DE 988 EE LV LT NO SE 988 PL PT FI GB IE FR DK DE PL SE GB Source: IGD Research

18 How has it membership changed? Source: IGD Research. Key: Retailer leaves the grocery retail alliance Retailer joins the grocery retail alliance

19 How has its geographical coverage changed? 9 AL BE BA ES IS CH BG AL RO ME SK BA FR RS ME FR IT RU LU GR ES RO FR ES IE BG RS Source: IGD Research. Key: Grocery retail alliance leaves a market Grocery retail alliance enters a market

20 Collective buying power over time 0 Collective buying power fell by CAGR 7.% between 006 and 05. Sales are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

21 Membership market share and ranking of key retailers in home markets Key: Ranking in home market Market share in home market Market share gain/loss*.%.4% 4.% 6.3% 6.8% 7.4% 7.% 7.4% 7.8% %.0% 4.% 4.% 4.4% 4.7% 5.4% 6.8% 6.8% % 3.4% 3.4% 3.7% 3.7% 3.8% (f) Source: IGD Research. * Market share gain/loss timeframes depend on a retailer s membership of the grocery retail alliance.

22 Membership market share and ranking of key retailers in home markets Key: Ranking in home market Market share in home market Market share gain/loss* % 4.9% 5.% 5.3% 5.4% 5.5% % 38.9% 39.0% 39.0% 39.% 39.5% 39.8% 39.9% 40.% +.4.4%.9% 3.6% 3.7% 4.7% 5.6% 6.3% 6.7% 6.8% (f) Source: IGD Research. * Market share gain/loss timeframes depend on a retailer s membership of the grocery retail alliance.

23 Membership market share and ranking of key retailers in home markets 3 Key: Ranking in home market Market share in home market Market share gain/loss* 6.7% 6.5% 6.4% 6.% 6.% 6.0% 5.8% 5.6% 5.3% % 3.7% 3.% 33.% 33.5% 33.5% 33.8% % 8.% 8.8% 9.5% 9.7% 9.8% (f) Source: IGD Research. * Market share gain/loss timeframes depend on a retailer s membership of the grocery retail alliance.

24 EMD An overview in 04 4 MEMBERS 5 GEOGRAPHICAL COVERAGE AT CZ DK FI FR DE IE IT 6 NL NO PT RS ES SE CH GB SALES IN EUROPE ( bn) (f) STORE NUMBERS IN EUROPE 54.3 c. 60,000* * Please note, this figure includes members own members stores. Sales and store numbers are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

25 Existing members and markets in EMD was established in 989 and so had a number of companies who were already members before 000. The companies, when they joined and the markets that they cover are detailed below. Number of members in 000: 7 Number of markets retail alliance was present in 000: 8 MEMBERS YEAR THEY JOINED MARKETS 989 DE 989 AT 989 IT 989 ES 99 IE GB 995 SE 997 FR Source: IGD Research

26 How has it membership changed? Source: IGD Research. Key: Retailer leaves the grocery retail alliance Retailer joins the grocery retail alliance

27 How has its geographical coverage changed? 7 BA BE HR CH FR GR ME AL PT AL DK FR BU RO NL BA IE FI NO GR RO BU HR ME LU RS FR FR SI Source: IGD Research. Key: Grocery retail alliance leaves a market Grocery retail alliance enters a market

28 Collective buying power over time 8 Collective buying power rose by CAGR.7% between 006 and 05. Sales are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

29 Membership market share and ranking of key retailers in home markets 9 Key: Ranking in home market Market share in home market Market share gain/loss* %.4%.3%.3%.0%.0%.9%.8%.7% % 8.6% 8.6% 8.3% 8.% % 3.5% 3.7% 3.4% 3.5% 33.4% 34.% 34.5% (f) Source: IGD Research. * Market share gain/loss timeframes depend on a retailer s membership of the grocery retail alliance.

30 Coopernic An overview in MEMBERS* GEOGRAPHICAL COVERAGE 6 FR IT PL PT SK ES SALES IN EUROPE ( bn) (f) STORE NUMBERS IN EUROPE 55.3,000 * Please note Delhaize is set to join on January 05 and so is excluded from the above data. Sales and store numbers are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

31 How has it membership changed? Source: IGD Research. Key: Retailer leaves the grocery retail alliance Retailer joins the grocery retail alliance

32 How has its geographical coverage changed? ALL 005 ALL 03* 3 AL MT UA AL IT AT NL LI AT LI BE PL BE LU BU PT BU MT HR RO HR RO CZ RU CZ RU BE FR SK DE CH GR DE SI HU UA LU HU ES NL RO IT CH LU IT RS Source: IGD Research. Key: Grocery retail alliance leaves a market Grocery retail alliance enters a market

33 Collective buying power over time 33 Collective buying power fell by CAGR.3% between 006 and 05. Sales are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

34 Membership market share and ranking of key retailers in home markets 34 Key: Ranking in home market Market share in home market Market share gain/loss* 6.5% 6.5% 6.6% 6.8% 6.8% 6.8% 6.9% 6.9% % 8.% 8.3% 8.5% 8.9% 9.% 9.9% 0.4% % 8.6% 0.7%.0%.%.%.0%.0% (f) Source: IGD Research. * Market share gain/loss timeframes depend on a retailer s membership of the grocery retail alliance.

35 Membership market share and ranking of key retailers in home markets 35 Key: Ranking in home market Market share in home market Market share gain/loss*.5%.8%.9% 4.0% 4.8% 5.7% 6.6% 7.3% 7.7% % 4.% 4.% 4.6% 5.4% 5.5% 5.6% 5.6% (f) Source: IGD Research. * Market share gain/loss timeframes depend on a retailer s membership of the grocery retail alliance.

36 CORE An overview for 04 CORE 36 MEMBERS 4 GEOGRAPHICAL COVERAGE AL AT BE BU HR CZ FR DE HU IT 9 LI LU MT PL RO RU SK CH UA SALES IN EUROPE ( bn) (f) STORE NUMBERS IN EUROPE 7.3 4,700 Sales and store numbers are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

37 How has it membership changed? CORE Source: IGD Research. Key: Retailer leaves the grocery retail alliance Retailer joins the grocery retail alliance

38 How has its geographical coverage changed? CORE 38 ALL 04 AL LI AT LU BE MT BU PL HR RO CZ RU FR SK DE CH HU UA IT Source: IGD Research. Key: Grocery retail alliance leaves a market Grocery retail alliance enters a market

39 Collective buying power over time CORE 39 Collective buying power is forecast to rise by.6% between 04 and 05. Sales are for those generated in Europe both Western and Eastern Europe and do not include sales generated outside the continent. Grocery sales only, i.e. sales as if to a shopper. Excludes cash & carry, health and beauty, food service, wholesale and non-grocery activities. Source: IGD Research

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41 Flags and country codes: Albania to Cyprus 4 Country Flag Country code Albania Austria Belarus Belgium Bosnia-Herzegovina Bulgaria Croatia Cyprus AL AT BY BE BA BG HR CY Source: IGD Research

42 Flags and country codes: Czech Rep. to Hungary 4 Country Flag Country code Czech Republic Denmark Estonia Finland France Germany Greece Hungary CZ DK EE FI FR DE GR HU

43 Flags and country codes: Ireland to Moldova 43 Country Flag Country code Ireland Italy Latvia Lithuania Luxembourg Macedonia (FYROM) Malta Moldova IE IT LV LT LU MK MT MD

44 Flags and country codes: Montenegro to Serbia 44 Country Flag Country code Montenegro Netherlands Norway Poland Portugal Romania Russia Serbia ME NL NO PL PT RO RU RS

45 Flags and country codes: Slovakia to UK 45 Country Flag Country code Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom SK SI ES SE CH TR UA GB

46 On social media? Connect with IGD Breaking news, in-store photos and IGD insights from consumer goods retailing Updates and insights from industry events, including new conferences, speaker details and special Latest news and research about food and grocery shoppers in the UK. IGD Consumer Goods Experts Join our 800+ strong group on LinkedIn for new content, exclusive updates and discussion Jon Wright uk.linkedin.com/in/jonwrightigd/ Source: IGD Research