Despite evidence that the rise of digital shopping has become an influential factor in the changing retail landscape, consumer shopping channel preferences continue to shift. Which channels are consumers shopping most, and what are they buying there? Are modern trade outlets replacing traditional trade in developing markets or is the opposite true? A review of sales trends for select fast-moving consumer goods categories* across the world reveal that when it comes to trade channel importance, there is no single answer that’s right for all.
Globally, the trade channel mix is becoming more fragmented as consumers shift toward smaller store formats. On a value basis, large supermarkets and hypermarkets account for just over half (51%) of global sales, but smaller formats such as traditional, drug and convenience outlets grew at a faster rate over the past 12 months. In fact, year-over-year sales growth in drug stores (+6%), small supermarkets (+5%) and traditional stores (+4%) doubled, or more than doubled, that of large supermarkets and hypermarkets, which grew a modest 2% each.
“Across the globe, we’re seeing the rise of proximity retailing,” said Patrick Dodd, president, global retailer vertical, Nielsen. “In the eyes of global shoppers, small and simple is beautiful right now. While there is some growth for large stores, the real winners are mini markets, small supermarkets and convenience stores. And digital is taking proximity/convenience retailing to a new level of customer centricity. There is nothing more convenient than a store in your pocket or in your handbag.”
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