Discounters in Spain

PROSPECTS

Discounters continues to grow, supported by the increasing popularity of private label

Discounters continued to increase in current value terms in Spain in 2018. The channel gained popularity during the financial crisis of 2011, but remained popular even during economic recovery, as the change in shopper behaviour was maintained.

Adapting to new generations

It is expected that millennials will replace baby boomers in the next few years as the generation with the highest spending power. Compared with older generations, millennials and generation Z are more open to trying new products, and this includes private label, which is key to the development of discounters.

More product variety in order to appeal to different consumers

Consumers are making category-by-category decisions. Private label offerings are becoming a viable alternative to premium products.

COMPETITIVE LANDSCAPE

Dia maintains its lead in discounters, whilst diversifying its network

During 2018, Dia continued to lead discounters in Spain, despite its struggles and declining share in the last few years due to the increasing competition from Lidl and Aldi. The company is carrying out the renovation of old stores and the opening of new stores, as well as is investing in technological and environmental improvements.

Lidl enhances its e-commerce channel

Lidl is amongst the retailers in Spain which has increased its presence the most in the last few years. The company has now turned to the development of its e-commerce channel, by offering products to its customers before they are available in its physical stores.

Aldi expands its presence in Spain

Aldi intends to accelerate its growth in Spain, and for this reason it plans to open around 30 stores a year during the coming years. The retail chain has also changed its strategy, and is strengthening its presence in urban centres, as opposed to the policy followed until a few years ago, when it concentrated on the periphery of urban areas.

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