The evolution of the large-scale distribution sales network in Veneto
At this point in the proceedings, we must take the time to focus on one particular section of the retail network: large-scale organised distribution (LOD). Overall, large-scale distribution structures remained stable in 2009; in the last year there was a very slight increase in the number of establishments, +0.27% compared to 2008. The regional trend results from situations which sometimes differ greatly from province to province: Venezia and Vicenza provided fertile ground for large-scale distribution in the last year, with increases in numbers of establishments of +9.9% and +5.1% per annum respectively.
The situations in Verona and Padova were the least favourable with -5.1% and -4.4% at the end of the year. The advantages provided by large-scale distribution have once again managed to keep these competitive channels of distribution in the hands of the consumers.
There are an average of 10 large-scale organised distribution establishments per 100 km2, with many differences to be found within the region: the province of Padova has the most large-scale distribution retail outlets, with 17 per 100 km2, followed by the provinces of Vicenza, Treviso and Verona with more than 11 establishments per 100 km2. Belluno and Rovigo, which have 2.4 and 5.9 establishments per 100 km2 respectively, are positioned a lot lower than the regional average.
Veneto and some other regions in the North and Centre of Italy, such as Trentino, Umbria, Valle d'Aosta, Friuli and Marche, have high figures for availability of large-scale organised distribution retail outlets compared to demographic size of the area in question: in Veneto there are 37.7 large-scale organised distribution establishments per 100,000 inhabitants. The national average is 30.7 establishments per 100,000 inhabitants.
(Table 5.3.1) and
(Figure 5.3.1)
Department stores, supermarkets and hypermarkets
Department stores operate in the non-foodstuffs sector, have a sales surface area of at least 400 m2 and contain at least 5 separate departments, each of which sells articles belonging to different product groups, mainly consumer goods.
Supermarkets, on the other hand, operate in the foodstuffs sector, they function on a "self-service" principle with payment to be made on the way out, have a sales surface area of between 400 m2 and 2,500 m2 and have a large range of fast moving consumer goods, mainly pre-packaged, and some non-foodstuff items for domestic use.
Hypermarkets are retail outlets with a sales surface area of over 2,500 m2 and are split into sections for foodstuffs and non-foodstuffs.
In 2009 Veneto had a total of 1,227 establishments comprising department stores, supermarkets and hypermarkets, the same number as in 2008. These establishments took up an average of 1,251 m2 each and had 27,000 employees. The provinces with the highest number of establishments were Padova, Verona, Vicenza and Treviso, as each one had at least 200 retail outlets of one of these three types.
If we look closely at the evolution of the types of distribution under consideration we can see that hypermarkets are settling in Veneto and growing steadily: in 2009 the number of establishments grew by 7% and their surface area by 7.2%. The number of employees, however, increased by less than 1% per year.
This type of distribution establishment has increased significantly over the last 5 years (+27.8% in establishments, +23.4% in surface area). This growth has been driven by the fact that products here are better value for money than in other types of distribution establishments, especially since the financial crisis has caused so much strain and worry.
Supermarkets are fairly well-established as retail outlets: from 2004 to 2007 supermarkets grew by an average of 4.2% per year, their relative surface areas by 5.3% per year and the number of employees by 2.9% per year. Since 2008 the trend for this type of establishment has remained fairly constant, with more moderate growth. At the end of 2009 there were 1.5% more supermarkets in Veneto than the previous year and the relative variation in terms of surface area of sales equalled 1.8% for the same period. Employment followed a similar trend, with an increase of 1.3% for number of employees for the same period.
Department stores, however, after some years of market stability, hit a sharp downturn in 2008 and 2009: at the end of 2009 the number of department stores had decreased by as much as 27.3% on the previous year, with a corresponding 8.1% reduction in sales surface area and 16% reduction in sales staff.
Minimarkets
This type of establishment operates in the food sector and has a sales surface area of between 200 m2 and 399 m2. It has the same characteristics as a supermarket, but it differs by range of products and size as supermarkets have a much bigger sales surface area. It is also very different from a specialised food shop, which has a narrower range of produce. These medium-small sized establishments are mainly to be found in town centres.
There were 406 minimarkets in Veneto on 31 December 2009, covering a total sales surface area of almost 124,000 m2 and employing 2,315 people. These establishments are mainly to be found in the provinces of Treviso, Padova and Verona, with 100, 81 and 78 minimarkets respectively, whereas Rovigo and Belluno have fewer than 25 each. Up until 2006 this type of retail establishment found itself in a period of great expansion, whereas the last three years have seen great reductions in terms of number and size of establishments. The trend in the number of employees has been more up-and-down. In 2009 the number of minimarkets in Veneto decreased by 3.1%, with a 2.4% decrease in surface area compared to the previous year. In the same period, however, the number of employees in this type of commercial activity increased by 1.7%. The trend regarding minimarkets in Veneto is not in line with Italy as a whole where, thanks especially to the regions in the Centre and South of the country, there was continual growth in all of the areas considered: +2.6% in establishments, +4.8% in employees, +2.4% in sales surface area.
Specialist stores
This type of retail outlet operates in the non-foodstuffs sector and deals either exclusively or mainly with a specific range of products on a sales surface area of at least 1,500 m2.
There were 215 specialist stores in Veneto in 2009, occupying almost 617,000 m2 in surface area. In the same year, there were 5,425 employees in this sector, making up 15.7% of all employees involved in large-scale distribution.
A close look at types of goods shows that in 2009 the "Furniture, Furnishings, Upholstery" sector dominated in Veneto, making up 27.9% of establishments. This was followed by "Textiles, Clothing, Fur" (23.7%), "Hardware, DIY, Gardening" (14.4%) and "Electrical Appliances, Electronics, I.T." (14%). If we break it down to the provincial level, we can see that the provinces of Verona, Treviso, Padova and Venezia have the highest number of specialist stores with 55, 50, 43 and 33 retail outlets respectively, employing a total of almost 5,000 sales staff.
Of the types looked at, it is the large specialist stores that have proved to be the most dynamic. Since the beginning of the Noughties they have expanded in all areas: number of establishments, sales surface area and number of employees all continue to grow strongly, so much so that the amount of people employed in large specialist stores almost doubled in five years (from 2,926 people in 2004 to 5,425 in 2009).
In 2009 there were an extra 9.7% retail outlets of this type, leading to a 12.5% increase in sales surface area and an 11.6% increase in the number of employees.
The strong points of this type of retail outlet are the wide range of goods available of a certain product type, qualified personnel to provide
pre and
post sales assistance and competitive prices. These were the factors that enabled specialist stores to evolve so rapidly, leading to an inevitable decrease in trade for more traditional shops and for department stores.
(Figure 5.3.2),
(Figure 5.3.3),
(Figure 5.3.4),
(Figure 5.3.5) and
(Figure 5.3.6)
Green attitudes within large-scale organised distribution
As has already been touched upon, our 21st century society is starting to pay careful attention to rationalising consumption. Industries are investing in rethinking packaging, aiming towards a more responsible attitude to it by using recyclable materials, or materials which can be disposed of more easily. The common aim is to reduce the production of waste caused by purchases, and the large-scale distribution sector is working towards this on a daily basis, also by attempting to make consumers more aware of such issues as sustainability and, where possible, trying to change their models of consumption. It is within this context that machines distributing liquids on tap are becoming more popular, both for foodstuffs and non, e.g. for personal hygiene and domestic products.
Nowadays, the consumer is encouraged to move away from impulse buys towards more careful and well-thought-out decision-making. Responsible behaviour can achieve important results not only with regards waste reduction but also in terms of saving money for families themselves: a survey carried out by Italy's
Giornale dei Servizi Ambientali (Journal of Environmental Services) has shown that consumers buy products on tap first of all out of curiosity, but that half of them then continue to buy products in this fashion because they can actually save money by doing so.