"Grocery Retailers in Lithuania" Published

Despite improvements in economic conditions, grocery retailers in Lithuania experienced continuous discounting over the review period. In 2015, Maxima sought to secure a decisive victory in this discounting war by announcing that it was permanently lowering the prices of hundreds of SKUs at the expense of its profit margins. A loud public relations battle ensued as other major players within grocery retailers declared they would take similar action. This “freezing of prices”, as it was dubbed by the media, had little impact on the way consumers did their shopping, as most major chains pursued similar discounting strategies. Moreover, economists expressed scepticism about statements by leading grocery retailers that they were sacrificing profit margins to offer better value for money to consumers, claiming that permanent price reductions would not have been implemented were it not for the fact that prices for many types of food products on global markets remained persistently low.

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Competitive Landscape

Maxima remained the clear leader in grocery retailers in current value sales terms in 2015 with an overall share of 36%. This company benefits from almost universal brand name recognition in Lithuania, and is widely perceived as a low-cost leader among consumers. Other key factors behind its strong lead in grocery retailers include its extensive network of outlets and consistently high investment in advertising. The company was the subject of some negative publicity in 2015 arising from an ugly legal battle between two of its founders. For months, shareholders disputed each other’s claims in the media, shedding light on the internal workings of a company that has always been known for its secrecy.

Industry Prospects

Grocery retailers value sales at constant 2015 prices are expected to grow at a CAGR of 3% during the forecast period to reach €4.5 billion in 2020. This would equal the constant value CAGR recorded during the review period. While the Lithuanian economy is showing signs of cooling off, it should continue to perform strongly enough to sustain the positive development of grocery retailers. Moreover, grocery retailers as a whole has proven quite resistant to economic downturns in the past, and this is likely to remain the case even if the local economy does not perform as well as expected towards 2020.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Grocery Retailers industry in Lithuania with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

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