Lidl continued to dominate discounters in terms of number of outlets as well as value sales in 2021, with increasing numbers of consumers appreciating its mix of affordable private label products and A-brands. The only significant challenger to Lidl in discounters in Sweden had been the Danish discounter chain Netto, but the brand left the Swedish market after Coop bought all Netto outlets in Sweden and converted them to various Coop outlets in other retail channels in 2019-2020.
Discounters saw significant declines in outlet numbers and value sales in 2020. However, this was skewed by the sale of Netto outlets to Coop, which converted them to retail formats other than discounters.
In 2021, in order to strengthen consumer loyalty, Lidl launched a bonus system on its customer club Lidl Plus app, which was launched in 2020 and had a successful start. The app lets customers receive discounts and rewards in form of vouchers, as well as storing digital receipts and coupons.
COVID-19 resulted in the accelerated growth of purchases of groceries online. E-commerce therefore gained share, and this is set to continue in the forecast period, which will put more pressure on discounters and increase the competition, as the players in this channel do not currently have an online sales presence.
In the forecast period, to remain attractive and withstand the competition from other channels, discounters are expected to increase their focus on locally produced products, expanding the share of such products within their ranges. For instance, in 2021, Lidl actively increased the proportion of Swedish-grown fruits and vegetables, as well as other “From Sweden”-labelled products, under its “Shop Excellently” campaign, which was positively perceived by consumers.
Sustainability is one of the key trends in almost every retail channel, and discounters is no exception. It will remain important for players to take extra steps in order to minimise food waste and reduce their climate footprint and negative environmental impact.
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Understand the latest market trends and future growth opportunities for the Discounters industry in Sweden with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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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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