Discounters in Italy

2020 IMPACT

Price sensitivity boosted discounters’ performance as Italian consumers fell on hard times

Discounters performed well in 2020, recording a relatively sharp uptick in retail current value sales during the COVID-19 pandemic. The success of discounters during the pandemic was down to the greater demand for essential products as foodservice outlets and entertainment venues were closed around the country, which meant that consumers had to eat more meals at home and also meant that essential grocery and household items became the focus of most consumer spending.

New outlets abound in Italy as domestic and international players continue to expand

More new outlets continued to open in 2020 despite the effects of the COVID-19 pandemic in 2020. This was due to the fact that the discounters channel is still expanding in Italy and is quickly gaining ground in the country as companies in this channel are well-known to offer a high level of value for money.

Eurospin Italia remains top dog in discounters despite mounting competition

Eurospin Italia retained its lead in discounters in 2020, despite losing slight value share. Although larger discounters are usually German, Eurospin Italia is domestic, whilst also owning stores outside of the country.

RECOVERY AND OPPORTUNITIES

Discounters expect strong performance as COVID-19 has lasting economic effects

Discounters in Italy is expected to perform well during the forecast period, apart from a slight decline in 2021 as the category stabilises following the dramatic surge in demand during the COVID-19 pandemic in 2020. For the rest of the forecast period, the category is projected to record strong growth, and the growth rate is expected to record an upwards trend.

Discounters focus on sustainability as players target more sophisticated consumers

Sustainable development is expected to be a key focus for many players in discounters over the course of the forecast period, as more companies are expected to invest in various initiatives in the coming years to appear more socially responsible. By investing in socially responsible causes, companies will show that they not only offer consumers savings, which is important in a time of such economic uncertainty, but also that they are making an effort to invest in the community and the environment in Italy.

Players expand e-commerce presence in the aftermath of the COVID-19 pandemic

E-commerce is increasingly in the spotlight for discounters, especially in the aftermath of COVID-19 which supported an increase in demand for e-commerce purchasing options, click and collect and delivery services. This will lead to a greater awareness of these services and a higher level of consumer demand for e-commerce platforms in the coming years.