Discounters continued to increase their share in modern grocery retailers in 2021 after the strong double-digit value growth seen in 2020. Operations of grocery retailers did not change much during the pandemic, as there were no special measures taken by such outlets apart from in-store social distancing and regular cleaning of baskets and shopping carts.
Rema 1000 by Reitangruppen and Kiwi by Norgesgruppen Servicehandel will continue dominating discounters in 2021 holding the vast majority of channel share between them. During the pandemic, Norgesgruppen Servicehandel cut prices on hundreds of products within its Kiwi brand and further supported volume sales with large marketing campaigns.
Given the continued high demand, discounters in the country continue to expand their network of stores aiming to offer locations closer to consumers’ homes. However, the channel faces increasingly competition from both supermarkets and e-commerce.
Discounters is set to remain the most popular channel for grocery shopping in Norway over the forecast period as customers continue to seek low-cost offerings and remain interested in shopping close to home. The channel benefits from its highly dense network, meaning that it offers convenience and easy access to stores.
Private label products are set to take up an increasing amount of space in discounters in the coming years as retailers strive to promote their own products. This allows discounters to have greater control over their offerings, with many seeking to improve the quality of their lines.
The share of food and drink e-commerce has been noticeably boosted during the pandemic as consumers turned to digital ordering and home delivery for both safety and convenience. However, this channel is not likely to disrupt the discounters’ share or price model in the forecast period because delivery tends to be expensive in Norway.
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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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