Discounters continued to see solid growth in 2021, although growth was lower than that recorded in 2020. The main growth in 2021 came early in the year as a new wave of COVID-19 infections resulted in Danish consumers spending more time at home and cooking more rather than going out.
Coop’s strategy to save its Fakta chain, which has been seeing declining sales, continued in 2021 with more stores being converted from Fakta to Coop 365. The Coop 365 stores are an attempt to differentiate stores from the discount segment where competition is fierce, and they are being promoted as low-price, not discount stores.
The leading Danish discount chain Netto of Salling Group A/S is also working on a strategy to improve the image of its stores, which many consumers view as the most basic and cheapest form of discount stores with poor service and relatively low-quality products. Under the Netto 3.
Following solid growth due to the impact of COVID-19 in 2020 and 2021, discounters is expected to see a small negative correction in value sales terms in 2022 as consumers begin to eat out more. However, over the rest of the forecast period, the channel is set to record slight growth as consumers resume their normal retail shopping habits.
The discount chain Rema1000 has been getting rid of most products that are transported by air transport in order to minimise its impact on the environment. The chain has confirmed that from 2022 it will have (almost) no products in stores that have been transported by air with a few exceptions such as roses from South Africa, which will remain instore until 2023 due to existing contracts.
Rema1000 is currently the only major Danish discount chains to offer e-commerce. The other major players Netto, Fakta and Aldi have no option for online shopping and delivery.
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Understand the latest market trends and future growth opportunities for the Discounters industry in Denmark with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.
See All of Our DefinitionsThis report originates from Passport, our Discounters research and analysis database.
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