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ITALY RETAIL MARKET Italian retailing was still very fragmented and dominated by a high number of small to medium-sized operators in 2005. The performance of discounters improved after a slow start, as they changed their marketing strategies to suit Italian consumer preferences. In fact, hard discounting could not work in a country like Italy which has such a deep and diverse food culture. These operators upgraded their image, distributing not only private label products, but also branded products. Moreover, they improved their own private label products to gain consumer trust. Italian consumers appreciated these ‘new image’ soft discounters, which also made efforts to improve the shopping environment within their stores to make them look friendlier.
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