Two Hungarian hypermarket operators owned by French firms, Auchan and Cora, are among the market’s leaders. While the rapid expansion of hypermarkets over the past six years has slowed, analysts say there is still room for market growth in Hungary. Stocked with more than just croissants, cheese and champagne, French hypermarkets are making a serious run for supremacy.

There are more than 20 hypermarkets in Budapest and over 60 in all of Hungary. It is projected that another 20 are on their way in the near future. According to György Vámos, secretary general of the National Commercial Association (OKSZ), Tesco, Interspar, Auchan and Cora are the main four main hypermarkets in Hungary, accounting for 20 percent of the market’s total share.

Auchan Hungary Kft., the country’s second largest hypermarket operator by revenue, currently operates eight hypermarkets in Hungary, with bold plans for future expansion. The retail firm says it will open four more shops next year and hopes to have a network of about 18-20 hypermarkets by 2008. While Auchan is predominantly concentrated in Budapest, it does have two hypermarkets outside the capital – one in Székesfehérvár and one in Kecskemét – and plans to target main Hungarian towns in its expansion.

“The Hungarian market is not big, but stable,” says Katalin Gillemot, assistant general director of Auchan Hungary. “We don't think that the market is saturated; there is still room and demand for further hypermarkets in certain regions of the country. Eventually the number of actors actually present on the market may seem too much, but during the coming years, the market will decide.”

However, Vámos says there is still plenty of room in the race. In Western Europe, hypermarkets cover 20-40 percent of the consumer market share, while Hungary is currently running between 10-20 percent.

“We should not just talk about the number of the hypermarkets in Hungary, it is also about square meters,” says Vámos. “In Budapest there are 20,000 square meters, but in other towns and cities there are around only eight or 10 thousand.”

The other French retailer in Hungary’s hypermarket industry is Cora – owned by the Belgium-French Louis Delhaize Group with the franchise rights in Hungary belonging to Magyar Hipermarket Kft. Cora recently began construction on its seventh hypermarket in Hungary, which is set to open by the second quarter of 2004. The HUF 5.2 billion, 8,500 square meter hypermarket will be Cora’s second in Szolnok (100 km east of Budapest).