Discounters is set to remain the leading driver of growth in grocery retailers in the forecast period, with all the major parameters outpacing other channels. These outlets are ideal for a quick stop for a snack/meal on-the-go, or for regular weekly shopping, as their locations are often in highly populated residential areas, or in the neighbourhood of other retail complexes.
In the forecast period, discounters will remain mostly for daily and weekly grocery shopping, but the non-grocery assortment is tending to play an increasingly important role in the product assortments of these players. Some products, mostly bulky ones such as appliances and power tools, are not kept in stock in each and every store, but they are available online, or on direct order from store personnel.
Discounters is expected to remain a three-player channel, consisting of Lidl, Aldi and Penny Market. These operators have nationwide coverage, and have further outlet openings planned, as long as regulation allows.
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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 Definitions
This report originates from Passport, our Discounters research and analysis database.
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