Marios Loucaides: Significant acceleration in mergers and acquisitions is anticipated

“Pressures on profit margins make acquisitions and mergers not only expected, but also imperative for the survival and growth of retail businesses,” said Marios Louciades, Synpraxis Management Services.

During the 22nd Cyprus Grocery Retail Conference, presented by Alphamega Hypermarkets, Loucaides analysed the international and local trends shaping the future of retail.

Starting from the European and Cypriot reality, he pointed out that in 2025 the grocery retail trade will be driven by the search for growth.

Particular emphasis was placed on the fact that high share of private labels, a pleasant in-store experience, the excellent quality of products and the lowest prices will be key elements of differentiation for businesses that will stand out.

The new generation of consumers, especially Millennials and Generation Z, are looking for products that combine freshness, functionality and purity in their ingredients, while also placing great importance on sustainability, local origin, recyclability and social responsibility.

Loucaides underlined that the concept of health varies by generation and that fresh, ready-to-eat meals and outdoor catering services, such as bakeries, canteens and vending machines, are experiencing faster growth compared to traditional retail.

At the same time, the need for a high level of personalisation is emerging as a key driver of differentiation. Consumers now demand comprehensive information about the products they purchase, focusing on issues of sustainability, availability and speed of service.

Technology and data, through artificial intelligence, will play a critical role in shaping the shopping experience, increasing conversion rates and enhancing customer retention.

However, despite the dynamic growth of some sectors, overall profit margins are showing a downward trend. Marios Louciades underlined that scale is now of decisive importance: Profitability and investment capacity are directly related to size.

For this reason, a significant acceleration in mergers and acquisitions is expected, both at the European and national levels, with trends towards centralisation of operations.

The integration of digital technologies and data remains high on the business agenda, as the gap between those who invest and those who lag behind in innovation widens.

A business's website, in-store displays, ads on third-party platforms, and connected TV media are emerging as significant sources of profit, with artificial intelligence tools taking an active role in increasing conversion rates.

Loucaides made an interesting reference to the case of WHSmith, focusing on the mistakes that led to the decline of a once-powerful chain.

As he mentioned, an inability to compete on price, a lack of investment in digital innovation, a weak omnichannel strategy and an absence of a clear brand identity contributed to its decline.

Today, in the rapidly changing market, businesses that do not take action to differentiate and do not strategically invest in innovation risk being left behind.

In closing, Marios Louciades emphasised that in Cyprus, the dynamics of local retail offer unique opportunities for growth through strategic partnerships, mergers and investments in cutting-edge technologies.

Those who move in a timely and targeted manner will be the ones who will dominate the future of Cypriot retail, the expert concluded.

(Source: InBusinessNews)