The Transformation of Branded Retail in Georgia: Market Structure and Global Trends

Georgia’s retail sector is undergoing a significant transformation, with branded retail chains expanding their market share and intensifying competition against independent stores. According to a 2024 report by Galt & Taggart, the five leading branded retail companies now control 74.8% of the market, signaling a strong consolidation trend.

Among the key players:

• Daily Group has emerged as the dominant market leader, increasing its share to 27.5%, up by 2.5% from the previous year.
• Ori Nabiji and Nikora remain strong competitors, holding 17% and 16.4% of the market, respectively.
• Carrefour, an international chain, controls 10%, while Agrohub holds a 3.9% market share.

Factors Driving Branded Retail Expansion

1. Rapid Market Growth & Increased Consumer Preference for Chain Stores

• Georgia’s retail market grew by 6.8% in 2024, reaching a total value of 22.7 billion GEL.
• Branded chains saw the fastest sales growth, increasing by 14.9% to 9.2 billion GEL, while independent retailers grew by only 1.9%, indicating a shift in consumer preference toward large chains.

2. Aggressive Geographic Expansion

• In 2024, branded retail chains added 500 new stores, with 350 of them located in regional areas.
• The regional expansion has nearly equalized the number of stores in Tbilisi and the rest of Georgia, suggesting that retail competition is spreading beyond the capital city.

Comparison with Global Retail Trends

Similar consolidation trends are evident in global markets:

• In the U.S., major retailers like Walmart, Costco, Kroger, Amazon, and Target dominate over 50% of the retail market. Walmart alone surpassed $611 billion in sales in 2023.
• In Europe, the market is even more concentrated, with Tesco, Carrefour, Lidl, Aldi, and Metro AG holding a significant share. In Germany, Lidl and Aldi together control over 50% of the market, replacing traditional small retailers.

Two key factors shaping the future of global retail include:

1. The Rise of E-commerce

• Amazon’s retail sales reached $524 billion in 2023, proving that online shopping is now a dominant force.
• In Georgia, e-commerce is still in its early stages, but digital sales and delivery services are expected to grow as more retailers invest in online platforms.

2. Retail Technology and AI Integration

• Cashier-less stores, like Amazon Go, are gaining popularity, allowing customers to shop without scanning items or checking out manually.
• European retailers, including Carrefour and Tesco, are integrating AI and Big Data to enhance inventory management and customer behavior analysis.

Future Outlook for Georgia’s Retail Market

The future of Georgia’s retail sector will largely depend on digital transformation and the continued expansion of branded chains. Key developments to watch include:

• Growth in e-commerce and digital ecosystems as retailers adapt to shifting consumer habits.
• Further market consolidation, making it harder for independent stores to compete unless they focus on premium or niche products.
• Retail chains leveraging AI and automation to optimize pricing, stock management, and customer engagement.

While the expansion of branded networks offers better pricing and services for consumers, it also poses challenges for small businesses. As Georgia’s retail landscape evolves, both opportunities and obstacles will emerge for all market participants.