Small grocery stores contribute approximately 10% to Bulgaria's GDP. For the first time in a decade, traditional trade is outpacing the growth of modern trade, reversing a long-standing trend that had led to the closure of 10,000 family-owned stores in recent years. Despite fierce competition from hypermarkets, these small stores retain a significant market share of 40-45%, highlighting their resilience in the retail sector.

Encouragingly, Bulgaria is among the European countries where consumers most frequently shop at small grocery stores, visiting them every two to three days. However, sales challenges persist, with poor practices and limited product variety reducing customer retention. Dimitar Vutkov, a leader in Bulgaria’s largest wholesale retail chain, notes that the average consumer spends only 10-12 leva per visit. He points out that nearly half of Bulgarian shopping baskets consist of fresh products like meat, fruits, vegetables, and dairy. Stores unable to maintain a well-stocked selection of these essential items struggle to meet consumer demands effectively.

Additionally, the dominance of promotional sales in hypermarkets poses a challenge to small retailers. In Bulgaria, promotions account for over 50% of hypermarket sales and reach as high as 80% in certain product categories. This competitive pricing environment underscores the difficulty small stores face in maintaining their market position against larger, more versatile retail chains.