European supermarkets will see their margins shrink further in the coming years, due to high inflation, declining purchasing power and increased competition (from discounters and online), McKinsey predicts in its new report. Fortunately, there are three solutions.
Large differences
European supermarkets achieved an average EBITDA margin of 7.1 % between 2009 and 2023, significantly lower than than other industries did. For example, non-food retail companies have an average margin of 22.9 %, consumer product manufacturers achieved 18.5 % and the Euronext 100 posted a 15.2 % growth.
