02.Dec .2019 12:07

Annual sales growth for Carrefour and Nikora Trade was high in 2018, comprising 22% and 29% respectively

Annual sales growth for Carrefour and Nikora Trade was high in 2018, comprising 22% and 29% respectively
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According to TBC Research, the organized FMCG market sales grew 27% y-o-y to GEL 2.1bn6 in 2018. Growth is expected to sustain in 2019, leading to the GEL 2.6bn of organized market sales in the same period.

The Organized market high growth in 2017-2019 years was largely driven by gaining market share from unorganized retailers, considering that overall market displayed 10% annual growth in the same period.

Retail Group is expected to be the fastest growing player in 2019. The retailer entered the market in 2018 and sales reached GEL 69mln in the same period. Following the expansion strategy of the organized market regional player its number of stores exceeded 100 in 2018.

“We expect that the retailer y-o-y sales growth will exceed 100% in 2019”, - the document reads.

According to TBC Research, sales annual growth for market leaders Carrefour and Nikora Trade was high in 2018, comprising 22% and 29% respectively. But Ori Nabiji closely follows the market leaders and its sales growth (+38%) was higher in the same period.

Franchise stores boost sales of organized player SPAR. Sales y-o-y growth of retailer in 2018 reached 50% (16% excluding franchise stores). The retailer strategy of increasing franchise stores is expected to continue in 2019.