Discount stores increasingly popular in Hungary
Household spending on fast-moving consumer goods (FMCG) rose by 2% in 2017 after rising by 2.2% in 2016 and 2% in 2015, market researcher GfK said on Wednesday based on a survey. Discount stores saw a rising share of turnover as consumer perceptions improved.
Last year EU development funding, increased investments and a rise in household consumption drove FMCG spending. The frequency of household purchases was down, but consumers spent 8% more on a single purchase than before, according to GfK, cited by business news portal vg.hu.
Hypermarkets still accounted for 24% of all FMCG turnover, but the market share of discount stores rose from 19% to 21%. Supermarkets had a 17% market share and retail chains 13%.
The rising discount store share is due to continuous expansion, as well as the perception of good quality products at a low price. While formerly discount stores were perceived by customers as units with cheap, warehouse-like interiors and a poor range of products, today they are seen as having easy to navigate interiors, fresh and quality products, and fast and easy payment at cashiers.
GfK said there could be a further moderate increase in FMCG spending this year, although spending could rise faster in other countries of the region.
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