Supermarkets in global decline as online and discounters grow

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The global market share of supermarkets and hypermarkets is shrinking, with the decline especially pronounced in the UK, as the ‘new order’ of discounters and e-commerce takes hold, according to Kantar Worldpanel research.

Its latest annual Winning Omnichannel report on FMCG trade channels reveals that the UK hypermarket and supermarket channel reduced by 3% in 2016, to account for 62.7% value share. The global value share reduced from 53.2% to 52.0% in 2016, with value growth of just 0.7%.

The UK discounter channel is growing at the fastest rate in Europe and is behind only Columbia, Argentina and Brazil. Discounters now account for 9.2% of UK value share, with growth of 11% in 2016.

E-commerce in the UK grew by 8% to account for 7.3% value share in 2016, compared with growth of 53% in China and 29% in Spain.

The global convenience channel remains at 4.6% of market share.

Stéphane Roger, global shopper and retail director, Kantar Worldpanel, said: “Channels which traditionally dominated the field – supermarkets, hypermarkets, drugstores – are in steady decline worldwide. Step forward the ‘new order’: e-commerce and discounters, cannibalising the big retailers with their promise of convenience and lower prices.

“Technology is fast changing the way people shop and, with e-commerce and discounters set to continue their march at the expense of large format retailers, there is an urgent need for retail reconfiguration across the world.”

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