Supermarkets – Three chains control 71,6% of the market

The domestic supermarket industry is evolving into a “game” for three (or four, if Lidl published financial statements), as they reaped 71,6% of the total turnover of about 10 billion euros in 2020 in organized retail.

In fact, in the year of the pandemic, the lion’s share of the three protagonists, Greek Supermarkets Sklavenitis and Alpha Beta Vassilopoulos, as well as METRO SA, became even larger than in 2019, when their total percentage of the industry’s turnover was 71,2%.

The above results from the annual “Panorama of the Greek Supermarkets 2021”, which presents, based on the balance sheets of 34 chains, which are the sample of analysis, the most important economic developments in the industry and in individual companies.

Additional revenues of almost 900 million euros

Specifically in 2020, the 34 companies under study recorded sales worth 9.98 billion euros, increased by 868.77 million euros or 9.54% compared to 9.11 billion euros in 2019.

It is worth noting that this is the fourth consecutive year of significant growth. In 2019 the total sales were increased by 226.72 million euros (+ 5.95%), in 2018 by 296.68 million euros (+ 3.56%) and in 2017 by 585.25 million euros (+ 7.51%).

In total, this four-year increase exceeds 28% and represents an additional amount of 2.19 billion euros, which is attributed to three factors: the COVID-19 pandemic and the subsequent lockdown, the completion of the reopening of the Marinopoulos branch network, and also the organic development of the industry.

Panic shopping

In any case, the impact of the pandemic should not be discounted. The recorded total increase in household expenditure on groceries for 2020 (3.70%, according to IELKA) is mainly due to the lockdown of the year in question, the “panic markets” of spring 2020 and the closure of the restaurant for long periods of time. intervals.

It should also be noted the rapid growth of online sales in the industry, which, according to the data of Convert Group, was 260% compared to 2019, reaching a turnover of 163.30 million euros.

The 5 largest groups and companies

In the analysis where the basic financial figures of the 10 largest in sales companies of the sector are examined, taking into account the consolidated balance sheets of those who publish them, the highest sales -but also the biggest increase in the sector-, the group Sklavenitis Hellenic Supermarkets records, with 3. 79 billion euros, with an increase of 15.59% and an additional 511.46 million euros compared to 2019.

This is a really huge amount, which corresponds to sales higher than the 5th company in the sample.

In second place in terms of turnover is the Alpha Beta Vassilopoulos group with 2.02 billion euros and an increase of 3.76% compared to 2019 (after 2 years of small reductions), adding to its total turnover 70.20 million. euro.

In third place is Metro, with a significant increase in sales by 6.00%, reaching 1.36 billion euros.

D. Masoutis follows with 882.47 million euros and a large increase of 6.34%.

The top 5 is completed by Pente (Galaxias) with 450.13 million euros and a significant double-digit increase of 13.64%.

Of the 9.73 billion euros of the total turnover of the 10 largest groups and supermarket companies in the 5 largest corresponds to 87.7%.

Only one chain, SYN.KA. Supplier and Consumer Cooperative of Limited Liability of Consumers of Crete, showed reduced sales in 2020 compared to 2019. Specifically from 189.17 million euros in 2019 “fell” to 186.21 million euros in 2020 (-1.57%).

Impressive increase in profitability

In total, the 10 largest groups and companies show in 2020 an impressive increase in profits compared to 2019.

In total, the 10 largest organizations in the sector showed in 2020 net results before taxes (profits) of 171.73 million euros, increased by 167.56% compared to 64.18 million euros in 2019.

As a result, the net profitability ratio of the 10 largest groups and companies stood at 1.76% compared to 0.72% in 2019.

Net profitability for all 34 companies under review in 2020 is slightly higher, but shows a smaller percentage change, due to the impact of the size of the largest companies.

Specifically, the net results appear increased by 113.60% from 89.36 million euros to 190.87 million euros. The net profit margin therefore stood at 1.91% compared to 0.98% in 2019.

This development is a result of the complete reversal of the losses in profits shown in 2020 by the group Hellenic Supermarkets Sklavenitis in relation to 2019 (and even more than in previous years), as well as the general trend of increasing profitability of most other companies.

Specifically, 8 of the 10 largest group companies record overall increased profits, as well as 28 of the 34 in total.

As always, a more realistic picture is given by the index before Financial Costs and Depreciation (EBITDA), which, incorporating the upward trend of depreciation, and especially lease depreciation (which first appeared in 2019), showed a large increase, from 5.50 % to 6.26% for the 10 largest groups and companies, while for the total of 34 companies and groups it increased from 5.69% to 6.48%.

In practice, after the application of the new accounting standards, this index will always be recorded at a higher level than in the past, something that must always be taken into account.

Timeless problems

Despite the very positive developments reflected in the different sections of the issue, such as the increase in sales and the improvement of inventory management indicators, the results of the financial analysis for the past year have some findings that continue to be problematic, as they have been for a long time. low level of liquidity.

Overall, however, the climate for 2020 was clearly positive, with most indicators improving.