Preparedness Solutions, through Helios System Innovations, SARL, is testing its concept of value pricing in Lebanon as an entry market for the Middle East.

Business Monitor International (BMI) projected the size of Lebanon’s mass grocery retail market at $2.7B in 2013, constituting and increase of 5.4% from $2.5B in 2012. It forecasts the market to grow at a compound annual rate of 8.7% during the 2013-17 period to reach $3.7B in 2017. It also forecasts Lebanon’s per capita spending on retail grocery products at $615.1 in 2013, constituting an increase of 4.6% from $588.2 in 2012. It Anticipated per-capita spending on grocery retail products to rise by 7.7% during the covered period and to reach $851 in 2017. It noted that continued economic expansion and investment by existing retailers would help drive mass grocery retail sales in Lebanon.

BMI considered that Lebanon’s overall grocery market is underdeveloped, as independent small retailers account for around 70% of total grocery sales, while mass grocery retailers represent the remaining 30%. It is estimated that there are 169 supermarkets and six hypermarkets in Lebanon at the end of 2012, compared to 146 supermarkets in 2003. It is expected that supermarket sales to account for 88.1% of total mass retail sales this year and hypermarket sales to represent the remaining 11.9%.

It is anticipated that supermarket sales will remain the main source of sales for Lebanon mass grocery retail market between 2012 and 2017.

Given the data represented by BMI, we believe there is a great opportunity to build a network of partners and expand in the coming years. The company will leverage the network distribution channels of Helios to reach supermarkets, hypermarkets and small mini-markets.