Michalis Panayides: Acquisitions and mergers are a new trend in the supermarket industry

The hypermarket industry is moving on an upward path, which stands at close to 4% to 5% for some hypermarkets and at higher percentages for some others, but still at a reduced rate compared to last year, according to Michalis Panayides, Vice-Chairman of the Board of Directors of the Cyprus Supermarket Association.

Speaking to InBusinessNews, Panayides explained that the reasons for the reduction are related to the correction of product prices, after the large price increases observed last year, the changeto the type of tourism (for example all inclusive packages) and the departure from Cyprus of some foreign residents, such as Russians and Ukrainians.

At the same time, the Association Vice-Chairman points out that the new trend in the sector is expected to be acquisitions and mergers.

The profile of the average supermarket customer

Outlining the profile of the average supermarket customer in Cyprus, Panayides said that it remains the same in terms of frequency of visits and the number of supermarkets they shop at.

In particular, as he said, visits to supermarket stores are frequent, specifically at least two a week, while in terms of the number of supermarkets visited by consumers, as he noted, the most frequent phenomenon is that consumers buy basic products from a supermarket and to look for the rest where they find discounted prices.

The only thing that may have changed, he added, is that consumers are looking harder for cheaper options, since due to inflation, they cannot buy the products they used to buy with the same amount of money.

Consumers, regardless of income level, are looking for "value for money", he added.

Additional services and e-commerce

Supermarkets make sure to satisfy all types of customers and in their effort to differentiate themselves from the competition, to offer additional services and a complete consumer experience, they provide consumers with various options within the supermarkets, such as restaurants, cafes, children's playgrounds and bakeries, for those who wish to combine their shopping and spending time with their family, Panayides also noted.

On the other hand, he said, they are obliged to facilitate the portion of consumers who do not want to spend time on their shopping.

Although demand for e-shops in the hypermarket sector is limited, e-commerce is the future, Panayides said, noting that all organised retail will soon be forced to offer this service as an additional option.

The triptych for trust

Asked about the ways in which a relationship of trust is built between supermarkets and their consumers, Panayides replied that the triptych of success concerns optimal customer service, offering quality services and products, as well as affordable prices, adding that the piecemeal approaches are not enough.

Acquisitions and mergers

Finally, speaking about the new trends in the supermarket industry, he said that a greater concentration of market shares is expected, with the acquisitions and mergers of supermarkets.

(Source: InBusinessNews)