Armenia flag Armenia: Buying and Selling

The distribution network in Armenia

Evolution of the Sector
According to the National Statistical Service, Armenia’s domestic trade in 2016 increased by 1% to about 2.2 trillion AMD and the biggest contributor to the domestic trade volume was retail trade, at about 1.2 trillion AMD in 2016.  AT Kearney's 2015 Global Retail Development Index (GRDI) ranked Armenia 10th globally for retail opportunities, a drop of four spots compared to 2014 due to weak economic performance. AT Kearney notes that Armenia still has an unsaturated retail market which is shifting rapidly to modern formats. In Yerevan, the country's capital and home to about 80% of the country's retail sales, shoppers spend almost $100 million monthly on consumer goods, primarily food. Home improvement, clothing, and furniture are the top non-food categories. The size of the Armenian market is relatively small, but the potential for retail trade is considered to be high.

Retail trade is moving from small and medium stores to large trade centers, including supermarkets.  Currently, there are several malls and large stores operating in Yerevan involved in trade of food and consumer products. Supermarkets are the most frequently used stores for FMCG purchases in Yerevan with 369.5 thousand customers daily. Small shops have nearly a third fewer customers. However the market share of large supermarkets is still only about 39% (2016 data) of total value of FMCG trade in Yerevan. The Yerevan Mall opened in February 2014; its major tenants include Inditex Group brands and a Carrefour hypermarket, which finally made its entry into Armenia after working to do so for several years. This development is a solid sign of improvement for the market, whose high levels of corruption and local monopolism have previously hampered the entry of international players. FMCG retail trade sector developments in Armenia follow the overall global trend: which is the gradual change to large-scale stores (supermarkets, hypermarkets).

According to AT Kearney’s report the main challenges for Armenia are the small population and strong monopolies in certain sectors. Carrefour’s delayed entrance into the market highlights these difficulties. However, international retailers benefit from a market that is shifting towards a western style business management, and from the Government’s efforts to attract international investments.
Market share
Business activity is concentrated close to 80% in the capital city of Yerevan (AT Kearney). Most imported products and services are managed by agents and distributors. Most businesses in Armenia are relatively small and family-owned, although there are some notable exceptions, including several major local and European supermarket chains (Carrefour opened its first hypermarket in 2014) and some department stores. Large companies representing several brands often have their own distribution hubs based in Yerevan.
The main actors of the food distribution are:
- Artashat Cannery (29% market share)
- Euroterm (27% market share)
- Ararat Food Factory (14% market share)
- Nicola International (11% market share)
- Sis Natural (11% market share)
Retail Sector Organisations
Chamber of Commerce and Industry of the Republic of Armenia
Ministry of Economic Development and Investments

Return to top

Any Comment About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Latest Update: July 2022

Return to top