Armenia's Market Overview in 2024

Country and Demographics

Armenia is a small yet dynamic country in the South Caucasus region, with a population of approximately 3 million in 2024. Bordered by Turkey, Georgia, Azerbaijan, and Iran, Armenia has a rich cultural history and is rapidly modernizing. Yerevan, the capital, is the economic hub of the nation, but other cities such as Gyumri and Vanadzor are increasingly becoming focal points for retail development.

Retail Market Structure in Armenia

The Armenian retail market has seen significant evolution in recent years, characterized by the expansion of modern retail chains, the persistence of traditional retail outlets, and a growing e-commerce sector. Regional expansion of larger retail networks is transforming the landscape, which was previously concentrated mainly in Yerevan. Below is an overview of the key retail players, channels, and emerging trends.

Key Modern Retail Networks

Yerevan City

• Stores: 47
• Description: Founded in 2007, Yerevan City is the largest supermarket chain in Armenia. The chain's first store, located at 15/5 Rubinyants Street, set the foundation for a network that now spans 47 locations. Yerevan City supermarkets are known for their spacious layouts, extensive product offerings, and high-quality service, including fresh, locally prepared meals, a wide variety of groceries, and flexible pricing strategies such as frequent promotions.

SAS Group

• Stores: 10
• Description: SAS Supermarkets offer over 30,000 different products, ranging from food and beverages to household items. Known for its premium selection and excellent service, SAS also operates 24-hour pharmacies and offers delivery services across Yerevan. The SAS Home division provides a variety of household goods, reinforcing the chain's comprehensive retail offering.

Zovq

• Stores: 28
• Description: Zovq started in 1999 and quickly gained a reputation for quality and service. The chain has grown to 28 locations, emphasizing a wide selection of products and competitive prices, which have made it a preferred shopping destination for many Armenians.

Tsiran

• Stores: 22
• Description: Tsiran, named after Armenia’s iconic apricots, has been operating for 11 years and was one of the first chains to expand into the regions outside Yerevan. Tsiran supermarkets focus on fresh, local, and imported products, with a strong online presence through Tsiran.am, which offers a wide range of food and non-food items and fast delivery services in Yerevan.

Urartu

• Stores: 21
• Description: Urartu is a leading retailer in Armenia, specializing in a wide range of household products, cosmetics, and hygiene items. The chain operates 21 stores and is a prominent player in the FMCG non-food category. Urartu offers everything from kitchen supplies to clothing, catering to a broad customer base.

Clean House

• Stores: 65
• Description: Founded in 2018, Clean House has grown to become one of Armenia's largest national retailers specializing in household cleaning products and personal care items. With 65 stores, Clean House provides an extensive range of products including branded cosmetics, hygiene items, and cleaning supplies.

Parma

• Stores: 7
• Description: Established in 1997, Parma is known for its high standards of quality and service. Initially starting with a small supermarket in Yerevan, the chain has expanded to seven locations and offers a mix of locally sourced and imported goods. Parma’s online platform, Parma.am, provides customers with a vast catalog of over 20,000 items, including exclusive products from European countries, with fast delivery services in Yerevan.

Pharmacy Sector

Alfapharm

• Stores: 160
• Description: Alfapharm is the largest pharmacy chain in Armenia, with 160 stores. The chain offers a wide selection of pharmaceuticals, health products, and wellness items, and is known for its customer-friendly service and comprehensive product range.

Natali Pharm

• Stores: 100
• Description: Natali Pharm is a major player in the Armenian pharmacy market, with 100 outlets nationwide. The chain focuses on affordable health and wellness products and has built a reputation for reliable service and accessibility.

Vagapharm

• Stores: 70
• Description: Vagapharm is a growing pharmacy network with 70 stores across Armenia. It offers a wide range of health products, including prescription medications and dietary supplements, emphasizing quality and customer satisfaction.

Wholesale Markets and Their Significance

Wholesale markets remain a crucial part of Armenia’s retail infrastructure, particularly for smaller, independent retailers who rely on these markets to supply a wide variety of products. The major wholesale markets in Yerevan, such as Davidashen Market and Mugni Wholesale Market, serve as key hubs for distributing fresh produce, groceries, and other goods to retailers across the country. These markets ensure the steady availability of products, especially in the regions, where logistics can be more challenging.

E-commerce and Online Marketplaces

E-commerce has rapidly expanded in Armenia, with the increasing presence of Russian platforms like Ozon and Wildberries driving growth:

• Ozon: With over 200 pickup points across Armenia, Ozon offers a diverse product range, including electronics, groceries, and household items, making it a popular choice for online shopping.
• Wildberries: Wildberries operates more than 250 pickup points nationwide, facilitating fast delivery and an extensive selection of products. Its growing popularity is reshaping consumer habits in both urban and rural areas.

E-commerce now represents around 10% of total retail sales, with continued growth expected as more Armenians turn to online shopping for convenience and variety.

Market Share by Channel (2023)

As of 2023, Armenia's retail market is divided among the following channels:

• Modern Retail Chains: 45% Chains like Yerevan City, SAS, and Zovq dominate this sector, with extensive networks and strong brand loyalty.
• Traditional Retail (Independent Stores): 35% Independent stores continue to serve a large portion of the population, particularly in rural and less developed regions. These stores often offer personalized service and are willing to experiment with their product assortments to cater to local needs.
• Pharmacy Chains: 10% Pharmacy chains such as Alfapharm and Natali Pharm have a strong presence, particularly in urban areas, providing a wide range of health and wellness products.
• E-commerce: 10% Online shopping, bolstered by platforms like Ozon and Wildberries, is an increasingly important retail channel in Armenia, especially for younger, tech-savvy consumers.

Regional Retail Dynamics

While Yerevan continues to be the center of Armenia’s retail activity, major chains like Yerevan City and SAS have been expanding into regional cities such as Gyumri and Vanadzor. Retail prices in Gyumri are typically lower, reflecting the region's economic conditions. Traditional independent stores in rural areas remain critical, with shop owners often showing flexibility in product assortment despite limited space. This adaptability allows them to cater effectively to the unique demands of local customers.

Conclusion

Armenia’s retail market in 2024 is a blend of modern retail chains, traditional outlets, and a burgeoning e-commerce sector. The continued expansion of supermarket chains into regional areas and the growing influence of online platforms are reshaping consumer behavior across the country. Wholesale markets remain vital to supporting both large and small retailers, ensuring a stable supply of goods nationwide. As retail infrastructure continues to develop, the interplay between these channels will shape Armenia’s evolving market landscape.