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

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.