Near home or online: where Ukrainians will buy tomorrow
17 June 21:03
The retail industry in Ukraine is undergoing a profound transformation. Formats coexist and compete, and each is trying to strengthen its position in the market. Currently, the battle is between supermarkets, small shops, and online marketplaces, "Komersant Ukrainian" reports, citing an article by LIGA.net.
Experts state that it is too early to talk about the displacement of large supermarkets by other sales channels, but the balance of power is gradually shifting in favor of electronic platforms for purchases and convenience stores.
Neighborhood shopping format: convenient and fast
Small markets near residential neighborhoods are currently expanding and strengthening their position. Retailers are focusing on this sector, opening new outlets in this format. The ATB, Silpo, Kolo and Rukavychka chains are thus meeting the needs of customers for everyday goods and ensuring that shopping is easy and fast. This became especially noticeable after the start of the full-scale invasion and migration of citizens from large cities to the surrounding areas.
The neighborhood format gives people the opportunity to quickly buy the essentials without visiting large supermarkets. In this way, it concentrates the flow of consumers that used to be accounted for by hyper- and supermarkets.
E-commerce development: rates are growing, but still inferior to offline
Online retail still accounts for only about 10% of the total retail trade. This is significantly less than in developed countries, where this figure exceeds 20-30%. At the same time, it is growing rapidly: in 2024, e-commerce turnover reached UAH 239 billion, up 25% year-on-year.
Not all product groups are equally well sold online. The electronics and clothing markets are growing faster, while food is still lagging behind. High delivery costs, logistical difficulties, and insufficient solvency of the population are still slowing down this process. In times of war, people also prefer those channels that provide speed, reliability and ease of service.
Read also: Markets or supermarkets: where is it more profitable and safer to buy food?
Reaction of large supermarkets
Not all chains are sitting idly by. Retail giants are focusing on improving service by opening new mini-markets and developing omnichannel platforms. The introduction of smart cash registers, loyalty programs, and mobile applications helps to improve the customer experience and retain their audience.
These players in the grocery market are also using supermarket delivery services in the wars for customers. This helps provide people with all the goods they need, improves coverage, and allows them to compete with other sales channels.
The retail industry is currently undergoing a major restructuring. The market is focusing on two main trends: the growing role of e-commerce and the strengthening position of convenience stores. At the same time, large supermarkets are still retaining their weight thanks to their wide assortment, logistics and omnichannel approach.
All of these formats are likely to coexist in the coming years, meeting the diverse demand of consumers. The distribution between channels will depend on economic and political conditions, levels of solvency, and the habits of Ukrainians. The market is still at a crossroads, which gives every reason to predict that such coexistence will continue, rather than one channel being replaced by another.
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