What’s next for supermarkets: The trends and challenges shaping the new era in food retail

Strategies, trends and challenges shaping the new era in food retail were discussed by top executives in the retail industry, as part of the recent 22nd Cyprus Grocery Retail Conference , presented by Alphamega Hypermarkets.

With an eye on 2025 and 2026, the discussion focused on the changes brought about by consumer behaviour and how supermarkets are responding and adapting their operations and product categories.

Emphasis was placed on the gradual diversification of Cypriots' purchasing behaviour, with consumers becoming more demanding, price-sensitive and oriented towards products with added value.

The landscape is changing and supermarkets must redefine their product categories.

Some categories appear to be declining, while others—such as wellness, healthy eating, and sustainable production products—are expected to see increased demand.

Coffee also starred in the discussion, which has now been included in the expansive intentions of the sector’s main stakeholders.

The panel included Loukas Zouridis, General Manager, MAS Supermarkets, Loukas Papagiannis, Savemore Consultant, Savemore Group of Supermarkets, Achilleas Pirintzis, General Manager, Sypal Emporiki Ltd.

Zouridis stated that MAS Supermarkets currently has 57 stores and then focused on the reasons why Cypriot retail is recording a positive trend.

As he mentioned, "convenient shopping" concerns the overall experience of the customer, who enters the store, makes his purchases and leaves within approximately 22 minutes, having at his disposal a sufficient range of options to be able to leave satisfied.

He pointed out that loyalty schemes will continue to be strengthened in the coming years, while he foresees mergers, partnerships and acquisitions at the supplier level.

He also mentioned the increase in coffee shops within supermarkets and wondered whether they would be sustainable in the future, but noted that these are now part of the company's strategy. Particular emphasis is being placed on renovations, with a directive to rapidly expand freezer aisles.

Papagiannis underlined that the forecast for 2025 includes many variables. As he said, the presence of consumers from other countries, inflationary pressures, and also external factors such as the tariffs imposed by President Trump, create uncertainty. Nevertheless, recent years have shown that retail trade is moving in parallel with the course of the economy.

He noted that having a coffee also serves as a reason to visit stores and envisages its integration as an element of the shopping experience.

Equally important, according to Papagiannis, is the role of good ready-made food, which he described as a key factor in success for the modern consumer.

Achilleas Pirintzis stated that the forecasts for Sypal Emporiki Ltd show a positive course with growth of both existing and new stores. He emphasised that small stores are the backbone of the economy.

He, in turn, commented on the remarkable growing presence of the foreign population in Cyprus as shown by statistical studies.

He urged cautious moves regarding the coffee shop trend, while noting that special emphasis should be placed on healthy eating, which more and more consumers are now choosing.

According to him, stores must satisfy the customer with both fresh and frozen products that respond to this trend. Cooperation with suppliers is, in his opinion, a key factor for success.

As for whether supermarkets would collaborate with each other, the three entrepreneurs leave the door open to the concept, saying that "anything is possible" and "never say never," emphasising, however, that it's not all about mathematics, it's a matter of culture and there being added value for both sides of such a collaboration.

The panel moderator was Olympios Toumazou, Executive President, RAI Consultants Ltd.