Report Coverage
The Egyptian Food Retail report examines current conditions, investment in the sector and other developments such as the entrance of foreign retailers like France’s Carrefour, the world’s fourth largest retailer. The company entered Egypt in 2002 and now runs a network of hypermarkets, supermarkets and express shops in partnership with UAE-based Majid Al Futtaim (MAF). In total 19 companies are profiled, including the Mansour Group, which owns both the Metro supermarket chain, the largest in the country, and the Kheir Zaman discount store chain. Also profiled is ExxonMobil Egypt (SAE) which operates 25 “On-the-Run” convenience stores and plans to open another 25 in the near future.
Introduction
This report focuses on the retail of food in Egypt, a sector that is dominated by micro-enterprises. Although there are only a few local supermarket chains, accounting for 2% of the number of food retail outlets, they are responsible for 15% of food sales. The value of the Egyptian food retail industry is forecast to reach US$55.3bn in 2016, an increase of 31.7% since 2011. Despite the risks associated with political instability in the country, it is considered to have great potential as it is has the largest market in the Arab world with a population of more than 90 million people.
Strengths
• Egypt has a growing retail market which has to cater for a population of over 90 million people.
Weaknesses
• A complex regulatory system exists.
• An estimated 98% of food retail occurs via small, traditional, grocery retailers, street vendors and unregulated markets.
• Infrastructure limitations, which have resulted in distribution and supply problems, as well as increased costs.
• The sector is reliant on imported foodstuffs.
Opportunities
• Government’s commitment to promoting foreign investment and involvement.
• Growth in online food retail.
• Increase in formal retail space and a growing shopping centre culture among the under-35 age group.
• The growth in the urbanised middle class, which should lead to growth in formal retail.
Threats
• For supermarkets and hypermarkets, continuing strong loyalty from customers to their local grocery store.
• Security threats in shopping malls and markets.
• Worsening economic conditions with high inflation, foreign exchange concerns, low economic growth and high unemployment.
Outlook
Increasing urbanisation coupled with the growth of the middle class and the associated increase in spending is expected to lead to growth in the food retail sector. However, challenges still exist and economic recovery is under threat as a result of high inflation, low growth and increasing unemployment. While Egypt has a massive market in terms of population, disposable incomes are under threat especially for the lower income groups. Despite these factors the Egyptian retailing market is modernising and opportunities in grocery retail have increased with the growing shopping mall culture. With a large youthful and technologically literate population, many retailers can expect to generate an increasing proportion of their sales online in future and will have to make use of a variety of social media channels to reach audiences.
Retail of Food in Egypt
2016
Full Report
R 1 900.00(ZAR) estimated $105.41 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.79 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 2 |
| 2.2. | Geographic Position | 3 |
| 3. | SIZE OF THE INDUSTRY | 4 |
| 4. | STATE OF THE INDUSTRY | 6 |
| 4.1. | Local | 6 |
| 4.1.1. | Corporate Actions | 10 |
| 4.1.2. | Regulations | 10 |
| 4.1.3. | Enterprise Development and Social Economic Development | 12 |
| 4.2. | Continental | 12 |
| 4.3. | International | 14 |
| 5. | INFLUENCING FACTORS | 16 |
| 5.1. | Lack of Transport Infrastructure | 16 |
| 5.2. | Economic Environment | 17 |
| 5.3. | Government Initiatives | 18 |
| 5.4. | Increasing Urbanisation | 19 |
| 5.5. | Information Technology, Research and Development (R&D) and Innovation | 20 |
| 5.6. | Labour | 21 |
| 5.7. | Cyclicality | 22 |
| 5.8. | Terrorism, Corruption and Counterfeiting | 23 |
| 5.9. | Electricity Supply Constraints | 24 |
| 6. | COMPETITION | 25 |
| 6.1. | Barriers to Entry | 26 |
| 7. | SWOT ANALYSIS | 27 |
| 8. | OUTLOOK | 27 |
| 9. | INDUSTRY ASSOCIATIONS | 28 |
| 10. | REFERENCES | 29 |
| 10.1. | Publications | 29 |
| 10.2. | Websites | 29 |
| COMPANY PROFILES | 31 | |
| BIM BIRLESIK MAGAZALAR AS | 31 | |
| EGYPT FREE SHOPS COMPANY SAE | 33 | |
| EMARAT MISR | 35 | |
| EXXONMOBIL EGYPT (SAE) | 37 | |
| FATHALLAGOMLA MARKET | 39 | |
| HYPERONE | 41 | |
| LA POIRE | 43 | |
| LULU GROUP INTERNATIONAL | 44 | |
| MAJID AL FUTTAIM HOLDING LLC | 46 | |
| METRO MARKET FOR TRADING AND DISTRIBUTION | 49 | |
| PANDA RETAIL COMPANY | 51 | |
| SPINNEYS EGYPT LTD | 53 |
