Nordic food retail

FINLAND BALTICS DENMARK SWEDEN NORWAY

CHAINS • TURNOVER • NUMBER OF STORES DEVELOPMENT • TRENDS ANALYZES

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SWEDEN

FINLAND

NORWAY

DENMARK

THE BALTIC STATES

ANALYSIS

BY SUSAN KARLING Foreign Editor

DIVERSE NORDIC GROCERY MARKETS

D

anes love discount retailers, Norwegians prefer their stores to stay closed on Sundays, and Finns want to avoid the pharmacy monopoly.

Contrary to popular belief, the Nordic nations and their consumers are very different. Our conditions vary wildly. This is true in geographical and economic terms, and perhaps most importantly of all in cultural terms.

I still remember Lindex’s foray into the Danish market sometime in the late 1980s. The company’s management had not done its homework, and simply copied the Swedish concept almost exactly.

Things did not go well. Lindex’s prospective Danish customers failed to identify with the brand, and turned their backs on it.

Thirty years later, last winter, I listened to the CEO of Virke, the Enterprise Federation of Norway, speaking at a large retail fair in New York. He spoke about current issues faced by Norwegian retail and the issues at the top of the agenda. It turned out that the issue the organisation would be putting all its energy into was ensuring that Norway’s shops remained closed on Sundays. There was an audible buzz from the audience,

THE THREE BALTIC STATES CURRENTLY HAVE THE BEST GROWTH AND THE GREATEST CONFIDENCE IN THE FUTURE.

which – in addition to Norwegians – also consisted of Swedes and Americans. Closed on Sundays? Swedish retail fought tooth and nail in the 1970s for free trading hours. Today, it is fighting to keep shops open around the clock. But retail representatives in Norway are battling to keep their restrictive opening hours. How can two neighbouring countries have such different priorities?

We may all live in Northern Europe, but that’s pretty much where the similarities end…

W

hat you are reading is a survey of the retail markets in Denmark, Norway, Sweden, Finland and the Baltic states.

Here, you’ll find most of what you need to know in order to understand and draw conclusions about the Nordic grocery markets.

Plain facts such as turnover and market shares are interwoven with analyses, trends and some predictions. Icanyheter’s editorial team have spoken with trend predictors, industry experts and analysts in several countries. Their conclusions are summarised in this publication.

You may be a little surprised to learn that the three Baltic states currently have the best growth and the greatest confidence in the future. This comes after many years of negative effects of declining populations and an economic downturn. The problem is that Estonia, Latvia and Lithuania are such small nations. Their combined populations are only slightly larger than that of Finland. You can also find out how this is affecting the growing Baltic grocery markets.

I trust it will make for interesting reading!

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NORDIC FOOD RETAIL 2016/2017

• ICANYHETER

Denmark

H S I N DA S D N TRE 1 Q

BY MI KA EL SY DN ER

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ed service, uality, improv ts and organic produc merce m co increased ethat s or ct fa are a few ogr se ri te charac hot . Here are five ng ili ta re cery mark. trends in Den

Danes won’t want to run to the shop to buy toilet paper

E E- C O M M ER C 1. IN C R EAS ED e convenienc E-commerce in around two up goods makes ng nagrocery retaili percent of all e that this e experts agre w tionally. All th disagree on ho ey . However, th be se ri ill w ill n w e tio ur fig propor lieve that the hers much. Some be 2025, while ot by t en rc pe e fiv isan th tim r op e most no greate 70 percent. Th h ac ew re vi e ill th w it think recasts on basing their fo ) will tic experts are 8-25-year-olds (1 n tio ra ne ge et rn y to bu toilet that the inte a physical shop to n ru d to t an settle down an hardly w ent when they rg te de d an r pape start families.

O U N TE R S the 2. M O R E D IS C ers have been hard discount s, ith w ar t, ye y ke ar an m m For grocery in the Danish w rs ne ne in of r w r be ea m cl t nu and the highes ress steady growth hat shaky prog ew m so te pi es D . gs ex in e en ar chains store op all the discount t lly ke ua ar rt m vi e , Th 15 . in 20 more stores g in en op ep ns pected to ke orwegian chai urred on by N . ce pa e th is also being sp g up a 1000 pickin Kiwi and Rem

2

Hard discounters hold on to their strong position

COOP DANMARK MARKET SHARES

ANNUAL TURNOVER

NUMBER OF STORES

36.9%

37.4%

37.6%

37.7%

37.1%

43 785

44 841

44 391

44 698

45 249

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

DANSK SUPERMARKED

1

MARKET SHARES

ANNUAL TURNOVER

32.5%

31.9%

32.2%

32.4%

54 980

55 367

56 607

56 816

57 148

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

DAGROFA MARKET SHARES

ANNUAL TURNOVER

2011

2012

2013

21 543

14.1%

13.2%

2014

2015

2011

20 782

2012

19 932

2013

NUMBER OF STORES

19 628

2014

2012

2015

Reitan’s market share is based on turnover from Rema 1000 and Lövbjerg. The turnover figures relate to entire operations, i.e. including Q8 and Statoil.

ANNUAL TURNOVER

9.1%

2011

19 609

2

REITAN DISTRIBUTION MARKET SHARES2

2013

9.7%

2014

NUMBER OF STORES

10.7%

9 285

10 219

10 868

11 708

13 713

2015

2011

2012

2013

2014

2015

ALDI MARKET SHARES

ANNUAL TURNOVER

3.5%

3.3%

3.2%

3.0%

3.1%

2011

2012

2013

2014

2015

NUMBER OF STORES

3 649

3 634

3 447

3 479

3 572

2011

2012

2013

2014

2015

LIDL MARKET SHARES 2.2%

2011

ANNUAL TURNOVER

2.4%

2.5%

2.5%

2.6%

2012

2013

2014

2015

Includes abroad.

NUMBER OF STORES

1

32.1%

15.6%

1172 576 596 290 222 98

No data is available, since Lidl’s corporate structure in Denmark means that the company does not need to publish accounts.

NUMBER OF STORES

15

CONTACT DETAILS

Chains Dagrofa

Reitan Distribution

CHAINS: Kiwi, Meny, Spar, Min Købmand, Let-Køb Owners: Norgesgruppen (48.9%), KFI Erhvervsdrivende Fond (41.5%), Købmænd (9.3%), Group-owned (0.3%)

CHAINS: Rema 1000, Løvbjerg, 7-Eleven (Statoil, Q8) Owner: Rema 1000 Danmark A/S

KEY PERSONS CEO: Per Thau, per.thau@dagrofa.dk CFO: Henrik Christiansen, henrik.christiansen@dagrofa.dk HRM and Director of Communicationss: Peter Hiort-Lorenzen, peter.hiort-lorenzen@dagrofa.dk CEO, Dagrofa Logistics: Lars Arnløv Jørgensen, lars.joergensen@dagrofa-logistics.dk Director, Købmandshuset: Jørgen Nielsen, joergen.nielsen@kobmandshuset.dk Director Kiwi: Carsten Hansen, carsten.hansen@kiwidanmark.dk Category Director: Hans Holmstedt

KEY PERSONS CEO: Henrik Burkal CFO: Torben L. Sørensen tls@reitandistribution.dk CLO: Lars Retoft lre@reitandistribution.dk CBO: Mads Nysted mny@reitandistribution.dk HRM: Lars Lyngsbo lly@reitandistribution.dk

CONTACT INFORMATION Head office address: Dagrofa aps Kærup Industrivej 12 4100 Ringsted, Denmark Phone: +45 70 20 02 68 Email: dg_koncernsekretariat@dagrofa.dk Homepage: www.dagrofa.dk

CONTACT INFORMATION Head office address: Reitan Distribution A/S Marsallé 32 8700 Horsens, Denmark Phone: +45 88 81 60 00 Email: supportcenter@reitandistribution.dk Homepage: www.reitandistribution.dk

Dansk Supermarked Group

Lidl Danmark

CHAINS: Føtex, Salling, Bilka, Netto Owners: Sallingfondene (81%), AP Møller-Mærsk (19%)

CHAIN: Lidl Owner: Lidl Stiftung/Schwarz-Gruppe

KEY PERSONS CEO: Per Bank CFO: Anders Hagh Director: Viktor Jegesi CEO Netto: Claus Juel-Jensen CEO Føtex: Thor Jørgensen CEO Bilka: Mark H Nielsen Chief of E-commerce: Kenneth Nielsen CIO: Alan Jensen CLO: Nicolai Gradman HRM: Peter Poulsen CONTACT INFORMATION Head office address: Rosbjergvej 33 8220 Brabrand Denmark Phone: +45 87 78 50 00 Homepage: www.dansksupermarked.com

KEY PERSONS CEO: Dirk Fust CFO: Thorbjørn Liebing CBO: Mark Hache Sales Manager: Marcus Gustafsson Director of Communications: Rikke Brandes rikke.brandes@lidl.dk CONTACT INFORMATION Head office address: Lidl Danmark Profilvej 9 6000 Kolding, Denmark Phone: +45 76 35 00 00 Email: lidl@lidl.dk Homepage: www.lidl.dk

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