The operating profitability of branded supermarket chains in Georgia declined in the first half of 2026, mainly due to lower gross profit margins and higher staff costs, according to Galt & Taggart’s FMCG market review. The average EBITDA margin of selected chains fell from 5.4% last year to 4%.
Galt & Taggart said the decline was driven by a drop in gross profit margin from 27.1% to 26.3% and higher payroll costs. In H1 2026, payroll expenses reached 12.9% of revenue, up by 0.6 percentage points year-on-year. The shares of rent and other operating costs remained largely unchanged.
At the same time, the pace of new store openings slowed in 2025–2026 compared with 2021–2024. Branded supermarket chains added just 41 stores in the first half of this year.
Despite lower profitability, total revenue of branded chains increased 12.8% year-on-year to GEL 5.4 billion. Growth was driven mainly by higher sales at existing stores, with like-for-like sales rising 10.3%, rather than by the opening of new outlets. Branded supermarkets accounted for 41.1% of Georgia’s GEL 13.1 billion FMCG market in H1 2026.
