RetailZoom: Budapest and the Countryside are on different paths for Domestic Chains

By: Trademagazin Date: 2020. 05. 25. 18:00

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

The month of April was once again a significant landmark in the life of the Local Chains, and at the same time further separated the Budapest shops from the ones in the Countryside. Average Basket value has increased to 4750 Ft in Budapest in April, meanwhile in Rural areas it stagnated with 2.500 HUF, making the already existing gap even bigger now. This is thanks to the fact that in April Budapest area has continued to increase their basket value by nearly 90% vs year ago and added yet another 38.5% surge vs the previous month, once again proving that convenience & proximity are continuing to be the main factors taken into consideration when shoppers decide where to shop. Meanwhile, in the rural areas it has stayed flat by a 1.3% increase vs previous month.

Andreas Christou

The main reason behind such a peak in Budapest is due to the large baskets (10,000 Ft+) that have further increased in numbers (+80%) and in value by 116% vs March. This is an all-time record-breaking figure in the history of domestic chains. A telling figure is that the units placed in a basket has increased by over 80% vs year ago in Budapest vs only by 5% in Rural areas. This makes it seems that countryside stores have reached their highest point in the lifecycle chart and are now about to stagnate, as there was no significant difference between March vs April. However, the same can not be said about the shops in Budapest, as March was already a record-breaking month, in April they yet again reached new heights, especially in the average basket value of shopping transactions. “New norms” continue to shape further the customer shopping patterns in Budapest as shoppers refuse to do big “weekend” shopping that last for hours and opt for the fastest service possible.

The real question is whether shops of Local Chains – be it in Budapest or in the Countryside – can maintain the momentum gathered in the wake of the virus and quarantine period and can come out of this in a better shape.

Tags: RetailZoom