In the near future, the number of stores, sales and market shares is likely to increase by stores with a small sales area. It will result from the changing expectations of consumers who want quick and convenient shopping close to home. Analysts agree that in the race for customer portfolios and market shares, networks such as Dino, Stokrotka, Biedronka and Lidl will have an advantage.
Within three years, by 2018, the Dino, Delikatesy Centrum, Polomarket and Stokrotka chains have opened a total of 720 branches. This means that for each newly opened discount there were two new supermarkets.
In recent years, consumers have favored discounters. Now their purchasing decisions are becoming more and more complex. Increasing revenues changed consumers choices such aspects as product quality, convenience of shopping, proximity to the store.
Dino Polska has opened 202 new markets compared to 147 a year earlier. It means an increase by 37% year on year. In the last three years, the network has doubled the number of its stores. Right now there are almost a thousand of them. After three quarters of 2018, the Dino network generated revenues of 4.3 billion PLN.
In 2018, the Biedronka network opened 122 new stores, ending the year with 2.9 thousand institutions. In fact, the network grew by 77 locations. Lower than in the case of Dino, the opening rate of Biedronka should not be surprising. Giving the higher market saturation with this format. Biedronka also gives way to Dino stores in terms of dynamics of sales growth. In 2018, the Portuguese network recorded sales of 11.7 billion euros.
Lidl is growing a little slower on this background, which in 2018 opened about 40 new stores, which made the network grow to more than 670 branches.
What is the secret of these networks? What makes Dino, Biedronka, or Lidl leave competition behind?
First of all, the size of the network and the organization and unification of the business model. It significantly improves the second key issue in trade, that is logistics processes. Added to this are the customer’s expectations, such as a convenient location, the right offer, and the speed and ease of shopping.