Luxembourg flag Luxembourg: Buying and Selling

The distribution network in Luxembourg

Evolution of the Sector
Luxembourg City is Benelux’s fourth most attractive location for international and national retailers. The city benefits from a broad consumer base and strong retailer demand. Luxembourg City has a central location in the country and is relatively dense: the city contains approximately 20% of the country’s inhabitants on 2% of its territory. More than two-thirds of the city’s inhabitants are foreign, mainly originating from other countries of the European Union. This is a consequence of the presence of a number of European institutions. Luxembourg has, by far, the highest gross domestic product per capita (in purchasing power standards) in the European Union, as well as the highest actual individual consumption. Luxembourg’s high spending power makes it attractive for luxury and premium retailers.

The main shopping zone in the city centre is along Grand- Rue and its adjoining streets, including Avenue de la Porte- Neuve, Rue des Capucins and Place d’Armes. A large variety of mainstream and premium brands are located in the area, with drivers such as H&M, Zara, Massimo Dutti, Jack & Jones and Tommy Hilfiger. The city centre also houses a luxury cluster on Rue Philippe II, where haute couture houses such as Cartier, Chanel and newcomer Dior are located, and which will extend in the future towards the soon-to-open Royal-Hamilius shopping centre. The prime retail zone of the city is located within walking distance of the old city centre and close to office areas. This prime catchment area of the country, and the wider region, includes a small luxury cluster that may extend in the future towards the Royal-Hamilius project. This is part of the international expansion programme of the Hudson‘s Bay Company, a Canadian retail business group that recently acquired Galeria Inno. Another prime retail zone near the central train station boasts high footfall and is where many international mainstream brands can be found. The central commercial zone will experience a wave of expansion with the opening of two large shopping centres, the first of which will be located within the Royal-Hamilius development. However, the COVID-19 crisis has delayed the delivery of the Royal-Hamilius shopping centre. The second mall is the Cloche d'Or shopping centre (75,000 m²) in the south of the city, which will offer 120 retail units as well as an Auchan hypermarket.

Four companies are currently controlling the large-scale distribution market: Cactus, a Luxembourger company, the Louis Delhaise group, the second largest actor, the Monopol group and the Auchan group. This sector profits from the high consumer spending of households, which is among the highest in the world ( per capita consumer spending is for example 70% higher than that of their Belgian and Dutch neighbors).

Market share
The revenue in the Food & Beverages segment is projected to reach US$51m in 2021. It is expected to show an annual growth rate (CAGR 2021-2025) of 3.09%, resulting in a projected market volume of US$58m by 2025. (Statistica) The mass retail in Luxembourg is dominated by 4 major groups:

  • the Luxembourgish Cactus is the leader in the distribution sector in Luxembourg and owns the following brands: Cactus Supermarché, Cactus Marché, Cactus Shoppi and Cactus Hobbi
  • the Louis Delhaize Group, which is the 2nd largest player in the country’s mass retail. It includes brands such as Cora.
  • the Auchan group, with 1 hypermarket and four drive-through supermarkets.
  • German discount supermarket chains Aldi and Lidl

These groups share a market of 626,100 inhabitants. (National Institute of Statistics and Economic Studies of the Grand Duchy of Luxembourg, 2020)

Retail Sector Organisations
The Union of Luxembourg companies (employers' trade union)
The Luxembourg Commerce Confederation
Luxembourg Chamber of Commerce
Luxembourg Ministry of Economy

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Latest Update: November 2022