Retailing in Switzerland - Player, Strategies and Developments

Retailing in Switzerland differs significantly from its European neighbours. The major reasons for these differences are trade-barriers, governmental regulations and certain consumer specifications.This paper introduces the main players in the Swiss grocery and non-food retail market. It shows current developments of concentration and market entrance of foreign retailers. As the Swiss retail market is highly saturated, there is little room for expansion within Switzerland. The consequent responses in the grocery sector are increasing competition between the established Swiss players and German hard discount retailers; vertical expansion into the production level of the food industry; and slight internationalisation tendencies. With the grocery sector being protected by trade barriers, the paper further presents the situation in non-food retailing, which is open to European competitors. Consequently, foreign players are much more present and stronger in the non-food sector.