Supermarkets, hypermarkets 1 pct of Egypt’s grocery outlets but earn almost 30 pct of all sales

Egypt's food and beverage sector is potentially of most interest to foreign investors targeted by the nation's new investment law that was signed by President Abdel Fattah al-Sisi in June. 

Wherever on the industry value chain investors may enter, the country relies on a strong retail sector to efficiently distribute food and beverages to the consumer. 

In Egypt, traditional retail outlets far outnumber modern supermarkets, hypermarkets, and convenience stores. 

According to a report by the United States Foreign Agricultural Service (FAS), the value of retail food sales from local grocers or markets, supermarkets, and convenience stores was around 226 billion Egyptian pounds ($12.66 billion) in 2016, up 11 percent from 2015. This number is expected to reach 250 billion pounds this year. 

FAS told Salaam Gateway that it uses several data sources, including Euromonitor and self-reported company data, to arrive at these figures.

Modern supermarket chains accounted for less than 1 percent of the number of food retail establishments in 2016 but earned 23 percent of sales, estimates the FAS report. 

Hypermarkets are smaller, with only 35 outlets in 2016, and accounting for 4.5 percent of total sales. 

However, the trend is rising for modern supermarkets and hypermarkets in the Middle East's biggest consumer market, with food sales expected to double from their 2011 level. 

($1 = 17.76 Egyptian pounds)

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