Grocery Retailers in Algeria - New Report Available

Grocery retailers in Algeria increased by 8% in current value terms in 2014, exclusive of VAT, whilst the number of grocery retail outlets in the country increased by 1%. The largest channel within grocery retailers in 2014 was independent small grocers, a channel which has managed to expand as a consequence of the flourishing of property development in Algeria as the government seeks to solve its chronic housing shortage. Growth in the number of grocery retailers outlets is expected to remain strong as supermarkets and, to a lesser extent, hypermarkets are expanding, although at a very slow pace. Nevertheless, the appeal of modern grocery shopping in hypermarkets is becoming increasingly attractive to Algerian consumers. This shift towards modern grocery retail channels was already underway at the beginning of the review period. However, the lack of space to construct large-format modern grocery retailers outlets in prime locations in Algeria’s large cities meant that much of this expansion was focused on smaller supermarkets, with outlets often spread over several floors rather than large outlets on one level, which is more commonly seen in Europe, for instance.

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Competitive Landscape

Numidis, the grocery retail company controlled at GBO level by Cevital, led grocery retailers in Algeria in 2014 with a 1% retail value share. Grocery retailers remained a highly fragmented channel during 2014 as it was dominated by numerous independent outlets, while Numidis operates only two supermarkets and five hypermarkets at the end of the review period, although this enabled it to generate sufficient value sales to establish outright leadership in the channel.

Industry Prospects

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