The forecast period is set to be overcast by the poor prospects of small local grocers especially in more rural areas, which will continue to be affected by migration and loss of purchasing power. On the other hand, assuming that inflation and then disposable income and consumer sentiment recover in the near term, organic food stores and health food stores can likely expect the return of increasing customer interest and good growth.
Providing disposable incomes recover and inflation continues to come under control, ethnic grocery stores, which mostly specialise in brands and food types from Turkey and the Levant region, are also likely to see increasing customer interest and good growth in the forecast period. In recent years, what were previously predominantly urban areas have increasingly expanded into medium-sized and smaller towns.
Since the rise in inflation in 2022, consumer interest in so-called “food cooperatives”, or “foodcoops”, has increased notably in urban areas, particularly in Vienna. These are groups that source their organic produce directly from producers instead of buying it from the supermarket.
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Small local grocers are mostly independent retail outlets (with a selling space of under 400 square metres), kiosks, market stalls or street vendors, owned by families and/or run on an individual basis, and with a primary focus on selling food/beverages/tobacco and other groceries. Small local grocers also includes ethnic grocery stores that specialize in foreign brands and food types, health food stores, confectioners/newsagents/tobacconists (CTNs), food & drink souvenir stores, legally registered mobile shops that are run out of a truck, and regional specialty stores. Retail sales from farmers markets, farms, vineyards, or similar producers are also included in small local grocers. Outlets located within wet markets in Southeast Asia (often located in government-owned multi-story buildings) should be counted as separate outlets.
See All of Our DefinitionsThis report originates from Passport, our Small Local Grocers research and analysis database.
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