Supermarkets - Italy - November 2016

OVERVIEW
What you need to know
Areas covered in this Report
EXECUTIVE SUMMARY
The market
Consumer spending
Figure 1: Italy: Annual % change in consumer spending, 2012-16
Inflation
Figure 2: Italy: Consumer prices of food and drink, annual % change, Jan 2015 – Oct 2016
Channels of distribution
Figure 3: Italy: Estimated distribution of spending on food and beverages, 2015
Sector size and forecast
Leading players
Key metrics
Market shares
Figure 4: Italy: Leading grocers’ share of all food retailers’ sales, 2015
Online
The consumer
Who shops for groceries
Figure 5: Italy: Who is responsible for grocery shopping, September 2015/September 2016
How they shop for groceries
Figure 6: Italy: Frequency of grocery shopping, September 2016
Where they shop for groceries
Figure 7: Italy: Grocery retailer they spend the most with in a typical month, September 2015/ September 2016
Reasons for shopping at most-used retailer
Figure 8: Italy: Reasons for shopping at the retailer they spent the most with in a typical month, September 2016
What we think
ISSUES AND INSIGHTS
The Italian home-grown discount sector
The facts
The implications
A changing of the guard
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Consumer spending picks up
Inflation remains low
Grocers account for 76% of spending on food and drink
2015 was a better year for food retailers
Low growth forecast
SPENDING AND INFLATION
Italian economy remains weak
Consumer spending growth picks up
Figure 9: Italy: Consumer spending on food, drink and tobacco (incl. VAT), 2011-16
Inflation
Figure 10: Italy: Consumer prices of food and drink, Annual % change, 2011-15
Figure 11: Italy: Consumer prices of food and drink, annual % change, January 2015-October 2016
Channels of distribution
Figure 12: Italy: Estimated distribution of spending on food and beverages, 2015
Figure 13: Italy: Estimated distribution of spending on food and beverages, 2011-15
SECTOR SIZE AND FORECAST
2015 was a better year for food retailers
Figure 14: Italy: Food retailers’ sales (excl. VAT), 2011-16
Figure 15: Italy: Food retailers’ sales forecast (excl. VAT), 2016-21
LEADING PLAYERS – WHAT YOU NEED TO KNOW
Coop Italia sales stabilise
Aldi to launch in 2017
Outlet numbers continue to decline
Coop loses its market leading position
Online remains small
LEADING PLAYERS
Conad takes number one position
Coop Italia sales stabilise
Esselunga focusing on price
Aldi to launch in 2017
Figure 16: Italy: Leading grocers, by sales (excl. VAT), 2013-15
Outlet numbers continue to decline
Figure 17: Italy: Leading grocers, Outlet numbers, 2013-15
Figure 18: Italy: Leading grocers, Sales per outlet, 2013-15
MARKET SHARES
Figure 19: Italy: Leading grocers’ shares of all food retailers’ sales, 2013-15
ONLINE
Online sales in Italy
Shopping online for food
Figure 20: Italy: Percentage of all individuals purchasing online in the past 12 months, 2011-15
Figure 21: Italy: Online purchasing in the past 12 months, European comparisons, 2015
Leading online players
THE CONSUMER – WHAT YOU NEED TO KNOW
More consumers taking responsibility for grocery shopping
Italians are regular shoppers
Coop Italia still the most popular primary shopping destination
Price and convenience the main reasons for shopping
WHO SHOPS FOR GROCERIES
Taking on more responsibility
Italians share responsibility more than their European peers
Figure 22: Italy: Who is responsible for grocery shopping, September 2015/September 2016
25-34 year-olds take greater responsibility
Figure 23: Italy: Who is responsible for grocery shopping, by age, September 2015/September 2016
Figure 24: Italy: Who is responsible for grocery shopping, by age and gender, September 2016
HOW THEY SHOP FOR GROCERIES
Italians are frequent shoppers
Figure 25: Italy: Frequency of grocery shopping, September 2016
In-store versus online
Figure 26: Italy: In-store vs online grocery shopping, September 2016
Effort saving benefits of online shopping
Figure 27: Italy: Reasons for shopping for groceries online, Q1 2016
Italians prefer to stick to what they know
Figure 28: Italy: Reasons for not shopping for groceries online, Q1 2016
Online services struggling to convince shoppers
Figure 29: Italy: Grocery purchasing services used in the past/interested in using in the future, Q1 2016
Bargain hunting on the rise
Figure 30: Italy: Grocery shopping habits, Q3 2016
WHERE THEY SHOP FOR GROCERIES 
Coop Italia still the most popular grocery retailer
Figure 31: Italy: Grocery retailer they spend the most with in a typical month, September 2016
Conad Group closes the gap
Discounters capturing primary shoppers
Figure 32: Italy: Grocery retailer they spend the most with in a typical month, September 2015/ September 2016
Conad attracts the oldest shoppers
Figure 33: Italy: Grocery retailer they spend the most with in a typical month, by average age and income, September 2016
REASONS FOR SHOPPING AT MOST-USED RETAILER 
Price and convenience the main draws
Figure 34: Italy: Reasons for shopping at the retailer they spend the most with in a typical month, September 2016
Priorities driven by necessity
Figure 35: Italy: Primary reason for shopping at grocery retailers, by average age and income, September 2016
Coop Italia shoppers favour range and reliability
Figure 36: Italy: Reasons for shopping at Coop Italia, net any rank percentage point difference from the overall average, September 2016
Conad shoppers want promotions and convenience
Figure 37: Italy: Reasons for shopping at Conad, net any rank percentage point difference from the overall average, September 2016
Eurospin is all about the money
Figure 38: Italy: Reasons for shopping at Eurospin, net any rank percentage point difference from the overall average, September 2016
Lidl has a broader appeal
Figure 39: Italy: Reasons for shopping at Lidl, net any rank percentage point difference from the overall average, September 2016
Carrefour offers a fast and friendly shopping experience
Figure 40: Italy: Reasons for shopping at Carrefour, net any rank percentage point difference from the overall average, September 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
AUCHAN
What we think
Making the best of its store portfolio
Potential in Central and Eastern Europe despite headwinds
Where now?
Company background
Company performance
Figure 41: Auchan: Group financial performance, 2011-15
Figure 42: Auchan: Outlet data (Europe only), 2011-15
Retail offering
CARREFOUR
What we think
Hypermarkets the ongoing weak spot
Online growing in importance
Looking beyond Drive for online grocery
Company background
Company performance
Figure 43: Carrefour: Group financial performance, 2011-15
Figure 44: Carrefour: Outlet data, 2011-15
Figure 45: Carrefour (Europe): Outlet numbers 2013-15
Figure 46: Carrefour: Store numbers by country, December 2015
Figure 47: Carrefour: European hypermarket numbers (directly operated stores only), 2015
Figure 48: Carrefour: European supermarket numbers (directly operated stores only), 2015
Figure 49: Carrefour: European c-store numbers (directly operated stores only), 2015
Retail offering
REWE
What we think
Click-and-collect
Accelerated roll-out of self-checkout technology
Fierce competition drives development of group-wide store brand
Meeting time-strapped consumers’ needs for convenient meal solutions
Expansion of smaller convenience food store format
Discount supermarket USP in Italy and Romania
Getting in on the Kaiser’s Tengelmann deal
Company background
Company performance
Figure 50: Rewe: Group sales performance, 2011-15
Figure 51: Rewe: Outlet data and estimated sales per outlet, 2011-15
Figure 52: Rewe: Full-range stores and discount stores by country, 2015
Retail offering
SCHWARZ GROUP (LIDL, KAUFLAND)
What we think
Chasing Aldi in key markets
Changing strategy in France
Plans to break America
Tentative moves online
The Lidl shopper
Company background
Company performance
Figure 53: Schwarz Group: Group sales performance, 2011/12-2015/16
Figure 54: Schwarz Group: Outlet data, 2011/12-2015/16
Retail offering