10-15%
(TA
Market overview continued
Industry trends
Online and mobile
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Consolidation
There is a great deal of consolidation, in both
the retail and consumer packaged goods
industry, which is continuing to drive scale.
This is especially apparent in the U.S., where
companies are seeking scale advantages in
sourcing and other areas. Another trend that
is currently emerging is “vertical integration,”
in which retailers acquire specific parts of the
value chain to be able to innovate, be more
transparent or lower their costs.
Diversification
There is much diversification taking place in
terms of channels and formats in the retail
industry. More and more, customers are
doing their food shopping at multiple retail
brands in multiple segments - they do not
distinguish between formats, but just want to
get their favorite products at the best possible
price. Retailers are developing their formats
in response to customer needs, leading to
increased competition across additional
formats. Customers are showing a preference
for small formats that emphasize specialty
products, urban locations and convenience,
while discounters continue to grow by
improving their offering and increasing
their advertising. The convenience channel
is growing at one of the fastest rates of all
physical grocery channels.
The total eCommerce market continues
to expand, and is expected to grow by
10-15% each year through 2020 - and food
eCommerce is expected to grow even more
quickly. Online grocery has reached a tipping
point as companies make it beyond the pilot
stage and some start to become profitable.
Traditional retailers are developing deeper
relationships with third-party delivery services
to help them keep up with the challenges of
“last-mile” logistics. There is growing demand
for same-day and instant delivery as customer
expectations for convenience increase.
Pure online companies are looking for physical
touch points to connect with consumers, even
launching store-based formats to enhance
the convenience and customer service they
can provide.
The total eCommerce market
is expected to grow by 10-15%
each year through 2020
