Competitive Strategies Case Study

Europe’s Grocery Market: Traditional Retailers vs Discounters

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Abstract:

Since early 2000s, discount retailers, which were once looked down upon as cheap stores, were rapidly enhancing their presence in Europe. Apart from catering to low income customers, the discounters were increasingly attracting consumers from all income levels. Between 1991 and 2005, discount grocery retailers in Europe nearly doubled their store count. Also, by 2005, discount stores were the fastest expanding format across Europe. Analysts forecast that discounters would enjoy consistent growth in the region through 2010, gaining significant market share. This made the traditional grocery retailers worry about their future growth. In order to retain their dominance in the market, the retailers decided to follow Head to Head combat strategies against the discounters. With both retailers and discounters fighting, analysts wondered how the grocery market of Europe would shape up in future.

The case deals with how discounters are making inroads into the European grocery market and the steps taken by the mainstream retailers to counter the attack. It also raises a question as to who would dominate the grocery retailing market of Europe.

Pedagogical Objectives:

• To get an idea of grocery retailing in Europe
• To discuss the emergence of discount retailers and how they made inroads into the European grocery market
• To evaluate the steps taken by the traditional retailers to compete against discounters
• To argue who would dominate the grocery retailing market of Europe.

Keywords : Evolution of modern retailing; Grocery retailing in Europe; Discount retailers; Types of discount operators; Competitive Strategies Case Study; Leading discount store operators; Top grocery retailers in Europe; European grocery market size; Market size by geography; Top discount retailers in Europe 2005; Forecast of top grocery retailers; Convenience store; Hypermarket; Price difference between brands and private labels

Contents : 
The Evolution of Modern Retailing Concept
Grocery Retailing in Europe: At a Glance
The Rise of Discount Retailers
Retailers vs. Discounters: The Battle Intensifies
Traditional Retailers’ Countermoves
Piggly Wiggly: Pioneer of Self-service Grocery Store