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Grocers Bet on New Growth Channels

Grocers Bet on New Growth Channels
Photo: LZ Retailytics
Drugstores, pharmacies and speciality food stores have become European grocers’ fastest growing channels.
European grocery retailers have long diversified their business portfolios in a quest to spread the risk and to tap into new growth channels such as DIY or department stores. But now the era of non-food store subsidiaries is nearing its end. LZ Retailytics data shows how grocery retailers are instead increasingly investing in complementary ventures with strong synergies to their core business.

While non-food focused store formats shrank or showed sluggish growth over the last four years, pharmacies, drugstores and speciality food stores outperformed for the grocers. Still, non-food e-commerce had the highest sales gain of all channels in the period, driven by highly omnichannel adapted general merchandise platforms. Will we see even more grocers invest in these channels going forward?

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