Page 23 - Caucasus Outlook 2025

5.0 Real economy outlook 5.1 Real economy – Georgia
5.1.1 Retail
The retail sector remained an important driver of growth in 2024, according to statistics office Geostat. As well as growing incomes of Georgians – albeit with purchasing power dented somewhat by inflation – tourism, a key driver of retail growth, continues to thrive in Georgia.
Increasing tourist numbers have supported the expansion of retail infrastructure and consumer spending. Tbilisi, Batumi and Kutaisi have all seen rapid increases in retail floor space, driven by growing demand from both domestic and international shoppers. The arrival of thousands of Russians, Belarusians and Ukrainians has further boosted local retailers.
According to TBC Capital, the organised retail market has steadily gained ground over traditional family-owned shops and bazaars. The share of the organised market, which includes established retail chains, grew significantly in 2023 and is expected to rise further, reaching 45% of the total FMCG market by 2025.
In November 2023, Zedazeni Group and Daily Group joined forces to create Georgia’s largest supermarket network. Together, these companies now control 30% of the retail market with a portfolio of over 1,600 stores with brands such as Daily, Ioli, Kalata, Spar and Magniti.
International players are also eyeing Georgia as a promising market for expansion. Wildberries, Russia's largest online retailer, has announced plans to extend its operations to Georgia, alongside other markets in the Caucasus and Central Asia. Tendam, a Spanish retail group, recently launched new stores under its Women’s Secret and Springfield brands in Georgia.
Tbilisi Outlet Village, a 20,000-square-metre project and the first shopping village in Georgia, opened in 2024. Situated near Tbilisi International Airport, the outlet has over 110 international retailers and restaurants.
E-commerce has emerged as a growing force within Georgia’s retail sector. Since the pandemic, the online shopping market has grown significantly, with electronics and household appliances dominating sales, followed by apparel and accessories. A report by Galt and Taggart forecasts continued growth in online shopping, with a projected compound annual growth rate (CAGR) of 52% up to the end of 2025.
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