Trends of recent years show a constantly developing market. Total turnover has grown from HUF 1445 billion in the year 2000 to nearly 2400 billion in 2006. Hyper markets produced the most spectacular development in the above period, primarily as a result of extensive growth. Retail chains composed of small Hungarian stores also achieved dynamic growth, which also lead to a decrease in the number of small, independent stores. Supermarkets and discount stores maintained their positions, while Cash&Carry and other channels lost some market share. The combined market share of various market players belonging to chains has approached 70 per cent. The market showed no radical changes between 2003 and 2006, though some chains had achieved dynamic expansion. I believe we will see the following trends in the future:
– hyper markets will continue to increase their market share, though at a slower rate ,
– supermarkets will maintain their positions, discount stores might achieve spectacular growth with Lidl and Aldi in the market,
– the market share of Cash&Carry will continue to shrink,
– Hungarian chains will probably maintain their positions, with the number of independent stores declining
– drugstores might achieve some growth, with other channels shrinking
Rearrangement might take place in the market among hyper markets and discount chains by fusion or merger. Apart from Aldi, I do not expect to see absolute newcomers in the market till 2010.
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