Ever wonder why Shoemart after dominating the retail landscaped in shopping malls development mushrooming everywhere, dominating the Supermarket and Department Stores categories has once again creatively come up with a the hypermarket concept. Although the US and European markets have long been pulled towards convenience and enjoyable grocery flair with their own hypermarkets, The Philippines somewhat is just getting used to the idea of a merger of basic grocery necessities, foods, drinks, beauty bars and shampoos, toiletries, apparel, household appliances, fashionable dresses and clothes wear, furnitures, dairy and non-dairy goods under one roof.
Shopwise for one, the pioneer in the hypermarket concept is also making every Filipino consumers fancy the freshest produce products and the bakery concept into their own fold of hypermarkets, value priced and ease of shopping conveniences.
Unlike the traditional supermarket and grocery concepts, these hypermarkets are gigantic, complimenting the idea of people always on the go, time savings and money-savers as well with the growing offerings of price-cut value for all age categories.
Recently Nielsen Retailer Service came up with a report on the shopper trends in Asia and Hypermarket has gained significant ground across all asian markets.
Hypermarkets – The shoppers’ choice for staples and non-food
According to Nielsen Retail Service, hypermarkets continued to gain share in most countries in the region. In urban Taiwan, Korea, Malaysia and Thailand, between 75 and 95 percent of main household shoppers use hypermarkets on a monthly basis, with more than 60 percent of these regular shoppers using this format as their main store.
Thailand stands out as the country that has embraced this format to the greatest extent, with four out of five
households spending most in hypermarkets.Shoppers are most likely to use hypermarkets as a destination
channel for either grocery staples, such as rice and edible oil, or mainstream non-food categories such as laundry detergents, toilet paper and shampoo. The general merchandise offer is also catching shoppers’ attention, with 70 percent of shoppers in Thailand, Malaysia, Korea and China claiming to have bought
clothes from Hypermarkets in the last year, and more than 50 percent also buying electronics.
The one area the stores continue to struggle with is fresh food. Wet markets continue to dominate in this category and most shoppers who buy fresh food from hypermarkets use them as a secondary channel rather than as a destination.
In Korea, hypermarkets are now the dominant trade sector with approaching 60 percent of urban shoppers claiming to spend most in this channel and over 90 percent using them on a regular basis. Korea experienced a significant increase in trade concentration during 2006 with the exit of both Wal-mart and
Carrefour and the sale of their stores to leading local chains. The top five chains now account for over 30 percent of sales, still a relatively fragmented market compared to others in the region, but in the last five years the level of concentration has increased nearly threefold from just 2 percent in 2002.
Hypermarkets also gained share, as well as penetration, in Indonesia. Over one third of urban Indonesian shoppers in key cities now use this format on a monthly basis. The number of hypermarkets has doubled in the last three years and there are now over 00 stores. But the biggest story in Indonesia, in terms of changing channel use, has been the growth of the mini-market. In 2000 mini-markets share of trade was less than four percent, in 2006 they gained another two share points to account for 2 percent of packaged grocery sales.
In that time period store numbers have increased from just over 2,000 to more than 7,300. Two retail chains, Indomart and Alfamart, have driven this growth and account for nearly 50 percent of store numbers. In urban Indonesia, nearly 20 percent of shoppers use these stores as their main grocery channel because of their convenient location and competitive prices.
In Summary
The Philippines, the growth of hypermarkets will sprout everywhere and this will play well with the consumers, more retail players would mean better price value offers will be made for the consumers, fresh goods, value for money, wide assortments and promotionals that will surely make this concept an appealing trend if not the new lifestyle of every Filipino household in terms of their grocery list shopping destination.
Shopwise for one, the pioneer in the hypermarket concept is also making every Filipino consumers fancy the freshest produce products and the bakery concept into their own fold of hypermarkets, value priced and ease of shopping conveniences.
Unlike the traditional supermarket and grocery concepts, these hypermarkets are gigantic, complimenting the idea of people always on the go, time savings and money-savers as well with the growing offerings of price-cut value for all age categories.
Recently Nielsen Retailer Service came up with a report on the shopper trends in Asia and Hypermarket has gained significant ground across all asian markets.
Hypermarkets – The shoppers’ choice for staples and non-food
According to Nielsen Retail Service, hypermarkets continued to gain share in most countries in the region. In urban Taiwan, Korea, Malaysia and Thailand, between 75 and 95 percent of main household shoppers use hypermarkets on a monthly basis, with more than 60 percent of these regular shoppers using this format as their main store.
Thailand stands out as the country that has embraced this format to the greatest extent, with four out of five
households spending most in hypermarkets.Shoppers are most likely to use hypermarkets as a destination
channel for either grocery staples, such as rice and edible oil, or mainstream non-food categories such as laundry detergents, toilet paper and shampoo. The general merchandise offer is also catching shoppers’ attention, with 70 percent of shoppers in Thailand, Malaysia, Korea and China claiming to have bought
clothes from Hypermarkets in the last year, and more than 50 percent also buying electronics.
The one area the stores continue to struggle with is fresh food. Wet markets continue to dominate in this category and most shoppers who buy fresh food from hypermarkets use them as a secondary channel rather than as a destination.
In Korea, hypermarkets are now the dominant trade sector with approaching 60 percent of urban shoppers claiming to spend most in this channel and over 90 percent using them on a regular basis. Korea experienced a significant increase in trade concentration during 2006 with the exit of both Wal-mart and
Carrefour and the sale of their stores to leading local chains. The top five chains now account for over 30 percent of sales, still a relatively fragmented market compared to others in the region, but in the last five years the level of concentration has increased nearly threefold from just 2 percent in 2002.
Hypermarkets also gained share, as well as penetration, in Indonesia. Over one third of urban Indonesian shoppers in key cities now use this format on a monthly basis. The number of hypermarkets has doubled in the last three years and there are now over 00 stores. But the biggest story in Indonesia, in terms of changing channel use, has been the growth of the mini-market. In 2000 mini-markets share of trade was less than four percent, in 2006 they gained another two share points to account for 2 percent of packaged grocery sales.
In that time period store numbers have increased from just over 2,000 to more than 7,300. Two retail chains, Indomart and Alfamart, have driven this growth and account for nearly 50 percent of store numbers. In urban Indonesia, nearly 20 percent of shoppers use these stores as their main grocery channel because of their convenient location and competitive prices.
In Summary
The Philippines, the growth of hypermarkets will sprout everywhere and this will play well with the consumers, more retail players would mean better price value offers will be made for the consumers, fresh goods, value for money, wide assortments and promotionals that will surely make this concept an appealing trend if not the new lifestyle of every Filipino household in terms of their grocery list shopping destination.
