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Discount stores' share of FMCG market rises to 15%

Discount stores' share of Hungary's fast-moving consumer goods market increased 1 percentage point to 15% in the twelve months to June 2006 compared to the previous twelve-month period, according to a survey by market research company ACNielsen.

The number of discount stores selling fast-moving consumer goods rose by 17 in the first seven months of this year to 451 in August after it rose by 48 units last year. Discount stores' share of the grocery market increased to 17% in the twelve months to June 2006 from 15% in the previous twelve months. House brands accounted for 43% of all food sales, up from 27%. Discount stores were also big sellers of mineral water, cheese, beer, cooking oil and chocolate.
Discount stores' share of the household chemicals and cosmetics market remained unchanged at 9%. ACNielsen noted that the stores face fierce competition in this segment from hypermarkets, which control 38% of the market. In the non-food segment, the share of commercial brands increased to 43% of discount store sales in the twelve months to June 2006 from 28% a year earlier. For some products, such as toilet paper and diapers, house brands account for as much as 85% of all sales. If this trend continues, house brands could account for as much as two-thirds of sales at discount stores, ACNielsen noted.