According to TBC research, consumers becoming more comfortable with cashless payments in FMCG. Cashless payments in the FMCG sector is estimated to reach 15% of total by the end of 2019. Mostly due to the higher share of e-payments in the organized market, which is expected to increase from 22% in 2017 to 32% in 2019. Additionally, the average card payment tickets size has decreased by 5% y-o-y to GEL 13 in the same period, indicating more frequent and dayto-day usage of the cards.
FMCG shopping pattern displays sharp increase in December. Number and volume of consumer e-payments in the FMCG sector in December were on average 33% and 31% above average monthly growth rates in 2017-2018 years.
Seasonality in the regions displayed different pattern. Sales level in the regions in summer months is higher in the period of increasing tourism (international and domestic arrivals) excluding the regions with skiing resorts where the pattern should be reversed.
Operating 24-hour shop could be inefficient for large format stores. Only 4% of total revenue in FMCG sector is generated between 02:00-10:00 hours16. Considering utility, staff and other costs, operating for 24/7 could be more efficient for convenience stores and small shops/kiosks in the FMCG market, unless the consumer behavior changes. Also, it is worth mentioning that this 4% of total expenditure is distributed only among the 24/7 retailers, which can amount to the substantial revenue per these stores.
Millennials account for 55% of total FMCG e-payments in Georgia, and average ticket size for the group amounts to GEL 11, below the average (GEL 13). Younger population is more comfortable with card payments, even with small transaction volumes.
Household expenditure pattern remains broadly unchanged for the last two years. During the 10 months of 2019, the average households spending amounted to GEL 1,500 per month, and food, beverages & tobacco accounted to 37% of total expenditure, 1 p.p. higher, compared to 2017.
In terms of food and beverages product categories, expenditure on beverages and tobacco increased to 27%, compared to 26% in 2017 and spending on chocolate, sugar products and other decreased by 1 p.p. to 8% in the same period. Spending on other food categories have been unchanged for the two year period.
