Greek grocery retail market undergoes structural shifts

The Greek supermarket market, valued at 16 billion euros, is experiencing significant shifts in market share and competition. According to an EY-Parthenon study, Sklavenitis has gained six percentage points of market share over five years, while AB Vassilopoulos has lost four. The acquisition of Kritikos by Masoutis has established a new group with combined sales exceeding 2 billion euros. Additionally, Lidl has secured the second position in the market, Metro is expanding into smaller stores, and Galaxias is facing a decline in profitability.

The sector faces long-term challenges due to Greece's demographic decline. Projections suggest the population could decrease from 10.3 million in 2025 to 9 million by 2050, with the proportion of citizens over 65 rising from 24% to 35%. This shrinking consumer base limits growth potential through volume, forcing retailers to seek new avenues for expansion.

Financial pressures are also mounting, as the sector's average EBITDA margin fell from 6.2% in 2020 to 5.7% in 2024. With annual investments approaching 480 million euros, industry leaders suggest that current profitability may not cover even half of necessary investment needs, potentially triggering a new cycle of market concentration.