Despite the crisis and difficult economic situation, the end of 2012 in Croatia was marked by opening of new stores by leading domestic and foreign retailers. Konzum, Plodines, Mercator, Billa, Kaufland and Lidl have opened supermarkets and hypermarkets across the country.

In the past 10 years, retail market in Croatia has experienced a huge transformation. National retailer chains have joined Billa, Mercator, Kaufland, Interspar and Lidl, and Aldi announces the imminent entry. Hypermarkets and supermarkets, according to the data of GfK Croatia, have stabilized on 50% market share, Lidl (the only discount store for now) is currently at about 7%, and interesting thing in 2012 is returning to the small shops, which after years of losses increased their market share, compared to last year.

In just 8 years, hypermarkets in Croatia increased market share from 3% to 26%, which is rarely observed phenomenon on a global scale. Our retail market currently has the most similarities with the Czech, Hungarian, Polish and Slovak markets. We are not referring only to the structure of the format, but on the concentration of market and share of private labels. Following the history of the development of retail and similar markets, we can assume that discounts have not reached the culmination. In next 8 years, by entry of Aldi and Lidl will continue to strength, discounts will win about 15% of the market. Cash & Carry formats are continuously losing market, not only in Croatia but also in the entire region, so it is not suprising that they are branding small shops.

In Croatia, the share of top ten retailers is stronger from year to year. For example, in 2009. top ten retailers occupied 66% of the market, while in 2010. this proportion was 70%. Top 10 retailers in Croatia currently holds about ¾ markets (like in the Czech Republic, Slovakia and Hungary), but it's not the end of market concentration. Consolidation of major players continues by taking over smaller retailers. It is difficult to predict how will list of top 10 retailers look for 10 years, but projections show that they will occupy about 83% of the market.

In the increasingly competitive situation among the leading retail chains in the Croatian retail market, private labels continue to rise. In the first half of 2012, the share of private labels was 20%, opposed to 2004 when this share was 5%. Croatian retail market in this segment as well follows trends in retail developed countries of the region.

Where is, in the whole story, His Majesty Buyer? The buyer is the one who (co)creates all these changes in the market. He is now, more than ever, "smart shopper", deliberate, seeking more action and promotions, buying by leaflets and he is less impulsive. We cand say that new consumer awarenesst is constructed. But, we should not ignore the fact that the same smart shopper becomes more demanding, expecting retailers and brands to innovate, to be always surprised , to be offered pleasure and entertainment. Those who recognize this, will be the winners at the end of the day.

PROGRESSIVE Croatia