Distribution Networks in Hungary

Overview by Globlatrade.net:

Types of Outlet

Department stores
Situated in town centers on several stores with specialized departments
Skála, Luxus áruház, Fontana
Situated at the entrance of towns. Alimentary and non alimentary.
Tesco, Auchan, Cora
Similar to hypermarkets but situated more in the center of towns and smaller surface
Spar, Interspar, Kaiser, CBA, Match
Hard Discount supermarkets
Mostly own label products at very affordable price
Aldi, Plus, Lidl
Specialized supermarkets
Specialized in one family product
Praktiker, Baumax, Decathlon, Intersport
Drug stores
Durgs and beauty products.
DM, Rossmann, Marionnaud

Evolution of the Retail Sector

Growth and Regulation
Volume of retail trade in Hungary increased by 2.4 percent, down 2.7 percent from 2006.
Retail growth is expected to be around 3.4 percent in 2008. Retail growth is expected to continue to slow further in 2008-2009 due to the central government's austerity measures and higher taxes.
Market Shares
Distribution networks for consumer goods are fast developing. Small and medium sized local businesses and especially small independent retailers are losing their market-share to foreign competition. Indeed, international stores are attracted to the country due to the increasing demand by Hungarian consumers for western products. The presence of several foreign groups can thus be noted:
- the Auchan group,
- Tesco,
- the German groups Tengelmann, Baumax and Metro.
The food distribution market also consists of a few big national groups: the leader being CBA.
The main players in the discount business are: Plus (with 156 retail outlets), Penny Market with 143 retail outlets and Lidl with 22 retail outlets.

In the non-food distribution sector, foreign groups dominate especially in the ready to wear sector (C&A, Mango, etc)
Organizations in the Retail Sector
Országos Kereskedelmi Szövetség - Hungarian Trade association

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