Navigator Consulting has been selected to implement a market entry study for gourmet food in Greece. The food segment includes healthy food, confectionery products, chocolates, and related items.
While the Greek economy has encountered serious problems in terms of declining consumer income, high unemployment and other adverse events, recent years have seen an explosion in high quality restaurants and food retail. International chains, such as Starbuck’s or Paul, have a well-established presence in Greece, while smaller, national restaurants and food producers are expanding.
This expansion is driven by a range of factors that are similar to other markets. These include the trend towards premiumisation; the willingness to try new, healthier offerings (such as halloumi cheese or falafel); and a consumer sense of aspiration and pampering, as well as an interest in healthy eating and wellness.
As a result, there are several urban locations in Athens, Thessaloniki and other cities that are poised for gourmet food entry and expansion.
At the same time, running a food retail operation in Greece is complex. There are bureaucratic hurdles and costs at every step in the process, as well as a tax system that is heavy and is constantly changing.
Our client is an investor active in food retail and distribution. The objective of the study is to determine pricing policy, retail locations, distribution structure, operations and profitability for a chain of 14 high street retail stores in Athens, Thessaloniki, Crete and other Greek islands.
Our work includes:
Scouting of likely retail locations and estimation of passing trade, catchment and entry numbers;
Competitor analysis and profiling;
Product range analysis;
Retail price analysis;
Distribution analysis, including distribution centre costs and operations;
Import shipping, volumes, timetables, tariffs and customs clearance;
Management operations and structure;
Legal, regulatory and tax analysis;
Financial modelling: assumptions, working, P&L, CF, BS;
Risk and sensitivity analysis;
The project is scheduled for completion in April 2019.
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