Retail: from the risk of decline to the discount store boom – what has changed since before the Covid pandemic
Almost 100,000 shops have closed since 2018. Boom in discount food stores: the number of outlets has risen by 7.4 per cent, the number of employees by 51.2 per cent and turnover by 101.1 per cent
Key points
Whilst there were 666,479 retail outlets in Italia in 2018, seven years later there are now 570,313. Put simply, this means nearly 100,000 fewer outlets: 96,000 to be precise. This figure sums up the first Retail Trade Report by the Confcommercio Research Department, produced in collaboration with the Tagliacarne Research Centre and presented today in Rome. But behind the 14.4 per cent decline in the number of retail outlets lies a paradox: the sector’s total turnover grew by 25.7 per cent over the same period, from 326.8 to 410.7 billion euros.
A quarter fewer street vendors; pharmacies on the rise
Street traders are bearing the brunt of the downturn, having lost 27.3 per cent of their outlets, as are small food shops, which have seen a 17.9 per cent decline. Specialised shops as a whole have also seen a 14.3 per cent decline.
The exception is the pharmacy sector, which grew by 4.2 per cent thanks to demand that is less sensitive to economic cycles and an ever-wider range of personal care products.
The discount store boom: turnover doubles
The real driver of turnover comes from discount food retailers: the number of local outlets rose by 7.4 per cent, the number of employees by 51.2 per cent, and turnover more than doubled, up 101.1 per cent. This growth can only be partly explained by inflation – the price index rose by 19.8% over the period – confirming households’ search for value for money. The combined sector comprising e-commerce, door-to-door sales and vending machines is also growing: a 13.6 per cent increase in the number of outlets and a 41.9 per cent rise in turnover.
A small number of staff lost
On the employment front, the decline in the number of shops has not resulted in a corresponding loss of jobs: the number of employees has fallen by just 1.8 per cent. The average number of employees per shop has risen from 2.9 to 3.3, a sign that those remaining in the market are tending to operate on a larger scale. The increase is particularly marked in clothing and footwear (+22.4 per cent) and in cultural and leisure goods (+21.4 per cent) – precisely the sectors in which the most outlets are closing.
