Supermarkets and hypermarkets’ share of fast-moving consumer goods (FMCG) is shrinking, and soon, they could account for less than half of total category sales.
Supermarkets and hypermarkets — also known as supercenters or superstores — accounted for 52 percent of global FMCG sales in 2016, down from 53.2 percent in 2015, according to the annual Winning Omnichannel report from Spanish-based consumer data specialist Kantar Worldpanel.
And due to increased competition from e-commerce and other channels, supermarkets and hypermarkets will make up less than half of FMCG sales by 2021, according to the report.
E-commerce’s share of FMCG sales increased from 3.8 to 4.6 percent in 2016, discounter sales rose from 5.5 to 5.6 percent and convenience store sales remained steady at 4.6 percent, according to Kantar Worldpanel.
By 2021, the organization predicts that supermarkets and hypermarkets will account for 48 percent of FMCG sales, e-commerce 7.5 percent and discounters 6.5 percent.
“Technology is fast changing the way people shop and, with e-commerce and discounters set to continue their march at the expense of large format retailers, there is an urgent need for retail configuration across the world,” Stéphane Roger, Kantar Worldpanel’s global shopper and retail director, says in a news release.