The Belarusian retail market has evidenced high growth rates over the past few years. In 2021, further modern grocery retail penetration remained the main engine for market growth. From 2020 to 2021 the Belarusian grocery market proved to be the least impacted by the COVID-19 pandemic and other periods of uncertainty.
Despite modern grocery retail penetration increased to 54% in 2021, it still remains at a low level compared to other developing and developed countries. At the same time, it attests to the potential for the further development of modern retail format in the Belarusian market.
Eurotorg is the undisputed leader in the Belarusian grocery retail market, with a market share of approximately 19% in 2021. The Company occupies over 34% of the modern grocery retail market, that is, almost four times more than the second-largest player and more than the combined market share of the next four peers. Eurotorg also has an enormous advantage in terms of geographical coverage, being present in over 180 localities where no other modern grocery retail player has a single store.
Eurotorg operates a multi-format chain: from convenience stores to supermarkets and hypermarkets under four banners: Euroopt, Hit!, Groshyk and Euroopt Prime. The majority of stores are convenience format under the Euroopt banner, while the new Hit! discounter banner was launched in 2019 and the Groshyk banner in 2020, respectively. The Company deploys Prime-format stores only in large shopping centres in Minsk.
Since 2017, Eurotorg has been focusing on developing smaller-format stores which remain key for the Company up until now. As of the 31 March 2022, the number of urban- and rural-convenience-format stores amounted to 879, while their total share in the Company’s selling space is 45%. As of 31 March 2022, convenience stores accounted for 54% of total net retail sales.
The Company opens soft discounters under the Hit! banner and hard discounters under the Groshyk banner in highly competitive locations where standard Euroopt stores would suffer from insufficient customer coverage. The aggregate share of discounters in the Company’s selling space was 21% at the end of Q1 2022, while their share in net retail sales of grocery stores was 29.4%.
The Company launched the Euroopt Prime banner to differentiate its customer value proposition. The assortment of Euroopt Prime was extended with premium brands and healthy eating products. In Q1 2022, the share of the Euroopt Prime banner in the Company’s selling space was 2%, while its share in net retail sales of grocery stores was 1.6%.
Such a diversified multi-format chain model enables Eurotorg to get into every location in Belarus with a better adaptation to size of local population, customer needs and preferences. As a multi-format retailer, the Company covers different shopping missions from small daily purchases to large family stocking up.