Supermarket poll: Lidl captures 7 percent of market, Coop most weakened
In its first six months of operations in Estonia, Lidl has captured 7 percent of Estonia's supermarket retail market, while Coop has lost the most clients, according to the results of a recent consumer survey conducted by pollster Kantar Emor.
Market power is indicated by the division of a shopper's cart between various retail chains and is highly dependent on the breadth of a chain's sales network. The domestic Coop, which includes Konsum and Maksimarket stores, has the greatest market power on Estonia's grocery retail market, but whose position has also weakened the most on year, Kantar Emor announced, referring to its latest poll results.
"Based on residents' assessments, however, Coop remains the best place to buy everyday goods, the primary strengths of whose image are good location, the ability to buy quickly and conveniently as well as a broad selection of Estonian products," Kantar Emor added.
In a solid second place is Maxima, with Selver coming in third.
While the main strengths of Maxima's image are related to rational arguments such as cheap price levels and special offers, standout elements of Selver's image include emotional values such as good service, a pleasant shopping environment and the offering of fresh and quality goods, the pollster explained.
Rimi, meanwhile, ranked fourth in market power, with Lidl tying Prisma for fifth overall.
According to Kantar Emor consumer behavior expert Kersten Jõgi, Lidl's focus as a discount retailer on low prices was known prior to its entry into the Estonian market, however the results of the study revealed that Lidl has weakened the positions of both chains focused on prices as well as those who provide added value, as it offers both prices consumers find attractive as well as quality products and service.
"Lidl has weakened the image of leaders in terms of several of their crucial strengths, and achieved a significant result in a short amount of time here," Jõgi added.
Taking brand power, i.e. the emotional connection between a store and its clients, into account as well, Lidl has clear potential to grow even more on the Estonian market.
"If you look at the likeability ratings of various retail chains provided by residents, Lidl has the greatest potential for growth in Southern Estonia, and a spot in the market power top three looms largest in the Virumaa region," the Kantar Emor expert highlighted.
Kantar Emor's supermarket survey was conducted online in September and included 1,669 Estonian residents between the ages of 15-74. The sample was representative of the Estonian population within that age range.
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Editor: Aili Vahtla