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Supermarkets break the € 50 billion revenue barrier
According to the figures from market researcher Circana, in 2023 supermarkets achieved revenue of over € 50 billion for the first time. This impressive supermarket revenue growth (+8.3%) was driven up primarily by inflation: volumes came under considerable pressure during the year.
In monetary terms the 8.3% increase compared to the slightly over € 46 billion achieved in 2022 meant that in 2023 supermarket revenue broke the € 50 billion barrier for the first time. The record growth year in percentage terms is still 2020 – Corona year – in which growth amounted to 11.2%.
Volumes under pressure
The well-above-average supermarket revenue growth in 2023 was almost entirely due to the considerably higher prices. Most of the price increases occurred in the first half of 2023; in the second half of the year both price increases and general inflation levelled off and there was also significant pressure on volumes which fell by 2%.
Less growth in 2024
Circana forecasts that the volume decline will come to a halt in 2024 and revenue growth will also slow down. One major reason for this will be the fact that, as of 1 July 2024, supermarkets will no longer be permitted to sell tobacco products. Currently tobacco related sales generate around 5 to 7% of supermarket revenue. In part based on this, Circana expects revenue to increase by a maximum of 2% in 2024.
Reduced online share
The share of online purchases fell from 5.4% in 2022 to 5.2% in 2023. Shopping online is deemed to be more expensive and going to a physical supermarket can save consumers delivery costs. In addition, (shop) formulas that are currently enjoying a tailwind, such as Dirk, Vomar and Nettorama, are not omnichannel formulas.
Source: Circana market research bureau.