FMCG retailer ranking 2023 is out now

Lidl, SPAR and Tesco are the top three, but there are changes!

FMCG retail had a difficult year, with the inflation – which was particularly high in the sector – peaking in 2023, and no reduction in tax burdens or regulatory barriers. The total sales revenue of the 15 chains on the list rose grew from slightly more than gross HUF 6,900bn in 2022 to over HUF 7,900bn in 2023 – but if we include inflation, the list shows that last year wasn’t a good year for retail.

No change in the top three. No one is surprised at Lidl’s No.1 spot, having moved so far ahead on the list that it was clear the discounter would be unbeatable in 2023. However, it is noteworthy that Lidl’s sales growth was only 18% (and the rate of inflation wasn’t much lower) and the discounter’s sales were up nearly HUF 220m, opening the gap to nearly HUF 400m against the No.2 in the ranking – this is really staggering. The “silver medallist” is SPAR once again, who managed to achieve a 16% growth in 2023, with the help of huge investments. Tesco’s turnover is at negative zero, but the retailer still holds on to the 3^rd place.

Behind the leaders the only change compared to the 2022 ranking is that Auchan and Reál have swapped places in the 8^th and the 9^th position. Although discounters and drugstores showed the steadiest progress last year, the spectacular development of the smaller Hungarian-owned chains at the bottom of the ranking is remarkable.

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Market environment

According to market research data, in 2023 wages were unable to keep up with the price race – real wage change was negative in 2023 – and this had an impact on household consumption, which dropped significantly, with a corresponding decline in retail sales.

Monthly volume sales were below the previous year’s level for almost the whole year, with December 2023 being the only month in which volume sales were better than 12 months earlier.

Discounters, who have been expanding for years, were able to increase their market share again, but not because of a volume sales growth, but due to a hike in price levels. There is only one channel that has produced a volume sales growth over the year: drugstores, whose share in total FMCG sales increased by almost 1 percentage point.

In response to the elevation in price levels, consumers have adopted a variety of defensive strategies. They switched to cheaper products and private labels, they were more likely to search for products in promotion (visiting the stores of several retail chains to be able to do this), and they preferred more frequent, smaller purchases to big shopping trips, which partly explains the good performance of retail chains with stores located close to where shoppers live.

Results outside the top three

Taking a closer look at the top three of the big Hungarian retail chains, the situation is similar, with Reál holding its own with a small increase alongside the similarly performing COOP and CBA.

At the same time, the only change in the order of the retailer ranking occurred here, as last year Auchan was behind Reál, but this year it has overtaken the Hungarian retail chain, with a sales growth slightly above the inflation rate.

Looking at the bottom of the ranking, we see great improvements in the performance of domestic retail chains.

Zsuzsanna Hermann, Trade magazin’s CEO and Editor-in-Chief

Drugstores are clearly soaring. In terms of expansion dm and Rossmann both performed superbly, and even if from a much lower base, sales by Dél-100 also developed nicely. If we were to do a separate drugstore ranking, Müller would be 4^th in this respect, but 3^rd in terms of gross sales.

When it comes to the channel grouping of retail chains, we simply must talk about the other fastest growing trio, which has been achieving fantastic results for years. Lidl, Aldi and Penny is the order in the ranking this year too, although Aldi and Penny closed the gap further in 2023, with a similar growth rate around 20-21%.

If you would like to read more about the FMCG sector’s performance in 2023, about the market research data, and about what the different retailers have to say as regards the last year and their plans for this year, all you need to do is open Trade magazin’s 2024/6-7 issue, which is available from 4 June, both online at www.tradeagazin.hu and in print version.

Methodology:

 The Retailer Ranking is based on the sales revenues indicated in forints. Sales revenues indicated in euros are for international information purposes only, and it is important to take into account the fact that due to the unstable nature of the HUF/EUR exchange rate, the list contains conversions based on the exchange rate issued by the Central Bank of Hungary (MNB) on the last day of the month in which the retailer closed its financial year.

Data contained in the table was provided by the retailers.

Sales revenue data marked with* is an estimation made by Trade magazin, based on Trade magazin’s Retailer Ranking 2022, and on the 2022 and 2023 tax declarations of the retailers, taking into consideration the changes in market conditions since then, with the involvement of experts.

About Trade magazin:

Trade magazin is the market leader FMCG magazine in Hungary. It is the only audited trade magazine for the FMCG sector, and every issue is printed in 20,000 copies to provide decision-makers in the retailer, supplier and HoReCa sectors with business information.

Trade magazin’s extended digital edition is available at www.trademagazin.hu, and a daily newsletter is sent out every workday, in Hungarian and English language.