European Grocery Retailing 2008 analyses the grocery market across 27 EU member states. The report explores the dynamics, growth trends and drivers of the market and provides detailed strategic recommendations for retailers. It also profiles and assesses the prospects for Europe's 10 top grocers including Ahold, Aldi, Carrefour and Tesco.

Scope

Proprietary data on market value, specialists sales and growth 2002 -2007 data for each of the 27 EU countries.
Key data on total expenditure, selling space, store numbers, sales densities and per capita expenditure for each of the 27 EU countries.
Extensive profiles of the major EU grocers, data on sales densities, space and store portfolio analysis, retail proposition and analysis.
Detailed chapters on five core European grocery markets, with market shares of leading players, recent developments and future outlook.

Highlights

2008 was a very good year for the grocery sector. As prices rose grocers reported healthy top and bottom line figures. Food inflation ran at unprecedented levels and enabled retailers to prop up their cash profits. The credit crunch has changed all that. As prices come down across the board, we believe that 2009 will be a tough year for the sector.

Across the EU customers have become increasingly cautious. Within grocery we believe that there are six main victims of circumstance: declining sales of organic and non food products in grocers and a virtual stop of M&A activity, format diversification, further internationalisation and sale and lease back deals.

Despite all the doom and gloom there are still opportunities in the market. Significant chances lie in private label development, gaining more efficiencies in buying and supply chains, cutting unnecessary costs, lateral diversification and in green retailing. Retailers should not let this crisis go to waste without emerging far stronger from it.

Reasons to Purchase

Learn how difficult market conditions are driving competition among grocers and what the outlook for EU grocery will be in the short to mid-term.
Understand how evolving consumer behaviour is forcing retailers to develop new product, sales and marketing strategies to appeal to a wider market.
Identify the success stories and growth prospects of the key competitors and benchmark their performance against the market.

CHAPTER 1 EXECUTIVE SUMMARY 19
Key Findings 19
Main Conclusions 21
CHAPTER 2 EUROPEAN MARKET – ECONOMIC OVERVIEW 25
Key Findings – all data based on Eurostat (07/08) 25
Main Messages 26
GDP 29
Consumer Expenditure 32
Inflation 33
Interest Rates 37
Employment 40
CHAPTER 3 EUROPEAN MARKET – DEMOGRAPHIC OVERVIEW 43
Key Findings 43
Main Messages 44
Trends 46
Growth by Country 47
Age Breakdown 50
Consequences for Retailers 53
Households 54
Urban Population 58
CHAPTER 4 EUROPEAN MARKET – RETAIL SPENDING 60
Expenditure 60
Growth 67
Per Capita 71
Retail Share 74
CHAPTER 5 GROCERY RETAILING IN THE EU 76
Grocers Sales 76
Sales Densities 83
Grocers Store Numbers 86
Average Store Sizes 89
CHAPTER 6 STRATEGIC ISSUES 90
Deflation the Major Threat 90
Discounters and the Reaction Depress Prices Further 93
Threat of Deflation in Wider Economy 95
Six Victims of Circumstance 96
Decline in Organics 96
Non-food 97
M&A Activity Virtually Stops 99
Expansion Abroad Cut Off 99
Format Diversification on Back Burner 100
Sale and Leaseback Deals Dry Up 100
Opportunities 101
Private Label Response 101
Buying Groups 105
Target Cost Cutting 106
Diversify Laterally 106
Stay Green 108
Be International – in a considerate and careful manner 110
CHAPTER 7 GROCERY RETAILING IN FRANCE 113
Market Summary 113
Recent Developments & Trends 120
Shares of Grocery Retailers in France 123
Outlook for Grocery Retailing in France 124
CHAPTER 8 GROCERY RETAILING IN GERMANY 128
Market Summary 128
Recent Developments & Trends 131
Shares of Grocery Retailers in Germany 134
Outlook for Grocery Retailing in Germany 137
CHAPTER 9 GROCERY RETAILING IN ITALY 138
Market Summary 138
Recent Developments & Trends 140
Shares of Grocery Retailers in Italy 141
Outlook for Grocery Retailing in Italy 143
CHAPTER 10 GROCERY RETAILING IN SPAIN 145
Market Summary 145
Recent Developments & Trends 148
Shares of Grocery Retailers in Spain 150
Outlook for Grocery Retailing in Spain 152
CHAPTER 11 GROCERY RETAILING IN THE UK 154
Market Summary 154
Recent Developments & Trends 157
Shares of Grocery Retailers in the United Kingdom 160
Outlook for Grocery Retailing in the United Kingdom 161
CHAPTER 12 COMPANY COMPARISONS 163
Overview 163
CHAPTER 13 AHOLD 167
Company Overview 167
Recent Key Developments 169
Sales Performance 170
Benchmarks 171
Store Portfolio 172
Outlook 174
CHAPTER 14 ALDI 176
Company Overview - the winning format 176
Recent Key Developments 179
Sales Performance 180
Benchmarks 182
Store Portfolio 183
Outlook 186
CHAPTER 15 CARREFOUR 188
Company Overview 188
Recent Key Developments 190
Sales Performance 192
Benchmarks 194
Store Portfolio 195
Outlook 199
CHAPTER 16 E LECLERC 202
Company Overview 202
Recent Key Developments 204
Sales Performance 205
Benchmarks 206
Store Portfolio 207
Outlook 209
CHAPTER 17 EDEKA 210
Company Overview – celebrates centenary with record year 210
Recent Key Developments 212
Sales Performance 213
Benchmarks 215
Store Portfolio 216
Outlook 217
CHAPTER 18 GROUPE AUCHAN 219
Company Overview – internationalisation boosts sales 219
Recent Key Developments 221
Sales Performance 222
Benchmarks 224
Store Portfolio 225
Outlook 228
CHAPTER 19 ITM ENTREPRISES 231
Company Overview 231
Recent Key Developments 232
Sales Performance 235
Benchmarks 236
Store Portfolio 237
Outlook 239
CHAPTER 20 REWE 242
Company Overview – Acquisition rampage drives growth 242
Recent Key Developments 243
Sales Performance 246
Benchmarks 248
Store Portfolio 249
Outlook 251
CHAPTER 21 SCHWARZ GRUPPE 254
Company Overview 254
Recent Key Developments 255
Sales Performance 258
Benchmarks 259
Store Portfolio 260
Outlook 264
CHAPTER 22 TESCO 266
Company Overview – foray into discount ranges to dissuade shoppers from defecting to cheaper rivals 266
Recent Key Developments 269
Sales Performance 271
Benchmarks 274
Store Portfolio 275
Outlook 278
CHAPTER 23 GLOSSARY 282
Definitions 282

LIST OF TABLES
Table 1: Consequences of population change for retailers 2008-2018 53
Table 2: EU Top Six retail expenditure 2002-2007e 60
Table 3: EU Top Six retail expenditure growth 2002-2007 61
Table 4: EU retail expenditure (€30.0bn+) 2002-2007e 63
Table 5: EU retail expenditure (€30.0bn+) growth 2002-2007e 64
Table 6: EU retail expenditure (€30.0bn-) 2002-2007e 65
Table 7: EU retail expenditure (€30.0bn-) growth 2002-2007e 66
Table 8: EU grocers sales by country 2003-2008 76
Table 9: EU grocers sales growth by country 2003-2008 77
Table 10: EU grocers selling space by country 2003-2008 81
Table 11: EU grocers selling space growth by country 2003-2008 82
Table 12: EU grocers store numbers by country 2003-2008 86
Table 13: EU grocers store numbers growth by country 2003-2008 87
Table 14: France grocery retail snapshot 2003-2008e 113
Table 15: France grocery sales breakdown % by format 2002-2007 114
Table 16: France change % in grocery sales by format 2002-2007 114
Table 17: France grocery market share 2007 123
Table 18: Germany grocery retail snapshot 2003-2008e 128
Table 19: Germany grocery sales breakdown % by format 2002-2007 129
Table 20: Germany change % in grocery sales by format 2002-2007 129
Table 21: Germany grocery market share 2007 134
Table 22: Italy grocery retail snapshot 2003-2008e 138
Table 23: Italy grocery market share 2007 141
Table 24: Spain grocery retail snapshot 2003-2008e 145
Table 25: Spain grocery market share 2007 150
Table 26: UK grocery retail snapshot 2003-2008e 154
Table 27: UK grocery sales breakdown % by format 2003-2008e 155
Table 28: UK change % in grocery sales by format 2003-2008e 155
Table 29: UK grocery market share 2007 160
Table 30: Leading European grocers sales 2007 163
Table 31: Leading European grocers market shares 2007 164
Table 32: Leading European grocers sales densities 2006 and 2007 165
Table 33: Ahold company overview 2008 167
Table 34: Ahold trading record 2004-2008e 170
Table 35: Ahold sales by division 2006 and 2007 170
Table 36: Ahold benchmarks 2006 and 2007 171
Table 37: Ahold store portfolio 2007 172
Table 38: Aldi company overview 2008 176
Table 39: Aldi trading record 2002-2007e 180
Table 40: Aldi benchmarks 2006 and 2007 182
Table 41: Aldi store estate 2008e 183
Table 42: Aldi selling space and store numbers 2006 & 2007 185
Table 43: Carrefour company overview 2008 188
Table 44: Carrefour trading record 2002-2008e 192
Table 45: Carrefour sales incl VAT by region and format 2007 193
Table 46: Carrefour benchmarks 2006 and 2007 194
Table 47: Carrefour store portfolio 2007 195
Table 48: Carrefour consolidated (excluding franchised operations) selling space by country 2007 197
Table 49: Carrefour consolidated selling space development by format 2002-2007 198
Table 50: E Leclerc company overview 2008 202
Table 51: E Leclerc trading record 2003-2008e 205
Table 52: E Leclerc benchmarks 2006 and 2007 206
Table 53: E Leclerc store portfolio 2007 and 2008e 207
Table 54: E Leclerc space provision 2006 and 2007 208
Table 55: Edeka company overview 2008 210
Table 56: Edeka turnover record 2003-2008e 213
Table 57: Edeka benchmarks 2006 and 2007 215
Table 58: Edeka store portfolio 2007 216
Table 59: Edeka outlets, selling space development 2003-2007 216
Table 60: Groupe Auchan company overview 2008 219
Table 61: Groupe Auchan trading record 2002-2008e 222
Table 62: Groupe Auchan benchmarks 2006 and 2007 224
Table 63: Groupe Auchan hyper