A new round of acquisitions and mergers in the supermarket sector targeting businesses with a strong local footprint as well as investments in new stores are forecast by market factors for the near future.
As the entrepreneurs say, the bet for the businesses will be decided on the network and the points of sale, and for this reason they also see acquisitions in the near future. In fact, the fact that for the small ones the competition is constantly increasing, while the profit margins are decreasing, makes the further concentration of the sector a given.
In the last year, entrepreneurs in the sector have expanded to insular Greece and to tourist areas. It is indicative that island Greece is considered a new Eldorado for the chains, which claim a share of the 900 million euros estimated turnover of the food retail trade on the islands.
Businessmen see further concentration as they estimate that the endurance of the smaller ones is running out due to the financial environment, while the executives of large chains express that they are “open” to acquisitions if there are suitable conditions. Something that their movements in 2022 and 2023 also showed.
Among the acquisitions made was in 2023 AS Agora from Sklavenitis, with stores in Larissa, Agia, Ampelona and Neos Poros, which is expected to be completed within 2024. Also the acquisition of Gegos with stores in Markopoulos, Loutsa and Porto Rafti and SEP Markets Papadopoulos in Ioannina.
Last year, Masoutis acquired the Family Super Market in Thessaloniki, Halkidiki, Katerini, Giannitsa, Veria, Ptolemaida and Komotini, as well as the Ioannou Denaxa Brothers chain with stores in Santorini, Mykonos and Attica, while in 2022 it had advanced a strategic partnership with the cooperative chain SYNKA, with presence in Crete, Aegean and Corfu.
ANEDIK Kritikos last year in March acquired Katerina’s Market with stores in Kalamata, Stoupa, Agios Nikolaos and Kambos and in 2022 the Cretan Mathioudakis and Cooperating Grocers, with stores in Northern Greece and Crete. Finally, OK Anytime Market Kosmoplus in Kavala, Alexandroupoli, Komotini, Nevrokopi, Xanthi and Rodopi.
The next steps
However, apart from acquisitions in the plans of retailers, growth comes through investments and the existing networks. Shortly before the end of 2023, AB Vassilopoulos and Masoutis completed significant investments with the opening of two large stores in Attica. The first in Kifisias, an investment of 12 million euros and the second in Glyfada, an investment of 2 million euros.
AB’s plan is to renovate the large supermarkets in its network, with the first one in Elliniko, which has already been completed. The total investments for the period 2023 – 2025 are 181 million euros and concern a total of 198 new stores (16 corporate and 182 franchise).
Masoutis is planning towards the end of 2024 another Grand Masoutis in Attica, at Treis Gefyres, an investment of 40 million euros, while another 10-12 stores will be opened. Its investment plan foresees every year 20-22 million for organic growth, not including potential acquisitions.
Sklavenitis has an annual investment amount of 60 million euros, focusing on the strengthening of its electronic channel and logistics as well as the renovation of its network stores.
Lidl Hellas is implementing new investments of 120 million euros for the next three years, focusing mainly on logistics and new stores. As for the Metro ABEE group, its management does not seem to have acquisitions in the investment plan for the period 2024-2026 amounting to 230 million euros, instead of the plan is the creation of a new logistics center in Aspropyrgos and the “green” investments that include the installation of photovoltaics in stores and distribution centers. Finally, ANEDIK Kritikos has planned investments of 14 million euros concerning the operation of 24 new stores.
