Wednesday, 7 September 2011

Gourmet supermarket chains in Poland

1. The gourmet supermarket chain's business model.
The gourmet chains business model is based on the very large offer (Bomi 35 thousands positions, Alma 50-60 thousands in comparison with Biedronka hard discount 1000 positions) many of whom are luxury items very often imported. Another, very important element of this model is very kind atmosphere and service. Of course clients pay this advantages in higher prices.

2. The difficulties dues to the crisis.
The crisis caused the decrease of purchasing power but also increase of prices of imported products because of strong zloty.
The first difficulty is the fall of attendance of gourmet supermarket chains. It started in 2009 when costumers swift to the discounts looking for lower prices.
The second difficulty related to the first one is the reticence of new created shopping centers to host this markets because of prices considered too high.

3. The gourmet supermarket chain's replay.
Facing this difficulties, the gourmet supermarket chains decided to decrease prices. This strategy has been continued since 2009. It seems working for Alma and Piotr i Pawel that succeeded in maintaining their customers loyalty. Though Bomi bet on multiply special offers and recorded the decrease of attendance.
The second factor is the tendency to replace imported products by “made in Poland”. Also prices of this products were decreased in order to align them with the competition. Some studies show that the prices in gourmet supermarket chains are paradoxically lower than theses in hypermarkets and in hard discounts. This decrease was even accelerated at the end of august 2011.
The quality has less importance on the scale of costumers priority. This is one of the reasons for which Piotr I Pawel want increase sales of their private label from 1% to 2%. However their representative assure that about 30% of their offer will still be the luxury products.

The experts forecast that gourmet supermarket chains will come back to their basic business model. They have their place in retail landscape but in the few next years will became more and more niche market.
Nevertheless the two principal chains are developing. In 2011 Piotr i Pawel will open 10 new stores (they have 76) and Alma 4 (they have 28).

Sources:
Bogatych klientów jest za mało, by luksusowe delikatesy wyszły na swoje.
January 2011; Gazetaprawna.pl

Coraz mniej luksusu w delikatesach.
May 2010 Dziennik Gazeta Prawna

Delikatesy w starciu z dyskontami
September 2011 ; Dziennik Metro

Delikatesy tansze niw sieci dyskontowe
January 2011 ; Dziennik Gazeta prawna

Delikatesy tansze od hipermarketow
January 2011 Bankier.pl, Handel-net.

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