Sri Lanka's middle class is increasingly turning to Small Medium Modern Trade (SMMT) outlets, reshaping the country's retail landscape.
According to a recent survey conducted by Colombo-based independent research agency Sparkwinn Research, this trend reflects changing consumer behavior patterns influenced by the rising cost of living.
The survey findings revealed a significant increase in SMMT visits among lower-middle-income consumers, with 22 percent now preferring these outlets compared to 15 percent three months prior.
Conversely, traditional small groceries saw a decline, becoming the top choice for 44 percent of lower-middle-class consumers, down from 50 percent previously.
Among the upper-middle-class segment, SMMTs saw a rise in popularity, attracting 24 percent of consumers, up from 18 percent previously.
Meanwhile, the preference for supermarket chains slightly decreased among this group, from 32 percent to 25 percent.Sparkwinn noted that middle-class consumers are drawn to SMMTs and wholesale stores for better deals, discounts, budgeted purchases, and satisfactory customer service.
They predict that these outlets will shape the future of retail as traditional retailers evolve to offer an enhanced shopping experience.
However, supermarket chains remain favored by high-income consumers, with nearly two-thirds of this segment choosing them for retail shopping.The survey highlighted several factors driving consumers to SMMTs, including proximity, discounts, low prices, product availability, and customer service.
As consumers prioritize preserving their financial resources, cutting down expenses, and adopting coping mechanisms, the appeal of SMMTs continues to grow.
