Personalization to propel growth for hypermarkets, says report
By Retail4Growth Bureau | September 27, 2023
A report by Research and Markets brings out some key pointers regarding the global hypermarkets market, which according to it, is on a robust growth trajectory, with a projected Compound Annual Growth Rate (CAGR) of 8.6% in the near future.
The global hypermarkets market is on a trajectory of robust growth, with projections indicating an increase from $1,667.71 billion in 2022 to $1,810.42 billion in 2023, representing a compelling Compound Annual Growth Rate (CAGR) of 8.6%. Furthermore, the hypermarkets market is expected to continue its expansion, reaching $2,400.19 billion by 2027 at a CAGR of 7.3%, according to a report by Research and Markets.
A few takeaways from the report:
Key Players in the Hypermarkets Market
As per the report, major players shaping the global hypermarkets market landscape include industry leaders such as Albrecht-Diskont (ALDI), Walmart Inc., Carrefour, Edeka Group, Lotte Corporation, Renrenle Commercial Group Co. Ltd., RT-Mart International Ltd., Beijing Hualian Group, Target Corporation, Fonciere Euris SA, Costco Wholesale Corporation, E. Leclerc, Metro Cash & Carry, Auchan, and Schwarz Beteiligungs GmbH.
Technological Advancements Transforming Hypermarkets
Artificial intelligence (AI) is a pivotal trend gaining momentum in the hypermarkets market. Major companies in the sector are adopting AI to enhance their market position. AI in this context focuses on creating intelligent machines and computer programs that replicate human intelligence. For instance, LuLu Group International, a prominent Indian Emirati-based conglomerate operating hypermarkets and retail companies, introduced "Salem," an AI-powered customer service channel on WhatsApp. This innovative service allows customers to receive in-app purchase receipts, track online order deliveries, and seek purchase-related assistance. Salem, powered by Yellow.ai, a US-based Conversational AI platform, significantly enhances customer engagement throughout their buying journey through deep backend integration with the retailer's CRM and Order Management system, leading to a remarkable 60% increase in customer satisfaction.
North America Leads the Way
In 2022, North America emerged as the largest region in the hypermarkets market. The report encompasses key regions, including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, and the Middle East and Africa. Furthermore, it delves into essential countries like Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.
Personalization Drives Market Expansion
The creation of personalized experiences is expected to propel the growth of the hypermarkets market in the foreseeable future. Personalization entails tailoring communication and services based on an organization's understanding of individual customers. Such personalized experiences empower manufacturers, hypermarkets, and supermarkets to optimize their financial returns. As of May 2022, senior marketing leaders reported a 5%-15% increase in revenue, directly attributed to successful personalization implementation, according to a report published by Psychology & Marketing (P&M), a West Sussex-based research publisher. This underscores the driving force of personalized experiences in the hypermarkets market.