Small local grocers is expected to continue to see growth in current value terms in the forecast period. Consumer demand is set to remain solid in this channel, with its share of value sales within grocery retailers expected to remain above half over the forecast period.
However, a continued decline is expected in outlet numbers for small local grocers in the forecast period, and although the value share of this channel will remain high, it is set to see a declining trend. The popularity of small local grocers, particularly wet markets, has been on a steady decline amongst the younger population.
More small local grocers in China are likely to invest in digitalisation going forward. For instance, they may leverage B2B platforms such as 1688.
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Small local grocers are mostly independent retail outlets (with a selling space of under 400 square metres), kiosks, market stalls or street vendors, owned by families and/or run on an individual basis, and with a primary focus on selling food/beverages/tobacco and other groceries. Small local grocers also includes ethnic grocery stores that specialize in foreign brands and food types, health food stores, confectioners/newsagents/tobacconists (CTNs), food & drink souvenir stores, legally registered mobile shops that are run out of a truck, and regional specialty stores. Retail sales from farmers markets, farms, vineyards, or similar producers are also included in small local grocers. Outlets located within wet markets in Southeast Asia (often located in government-owned multi-story buildings) should be counted as separate outlets.
See All of Our DefinitionsThis report originates from Passport, our Small Local Grocers research and analysis database.
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