The cost-of-living crisis was a catalyst for the significant growth recorded by discounters in 2022. With higher food prices, higher energy bills, and higher mortgage payments, local consumers faced a financially tough year with elevated inflation.
It appears to be difficult to gain a foothold in discounters in the UK. Tesco announced the closure of Jack’s in 2022 with German discounters likely to attract millions of additional customers as a result.
In October 2022, HFSS products were banned from being displayed in key areas within shops, such as store entrances and tills. Other HFSS regulation has been postponed.
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Understand the latest market trends and future growth opportunities for the Discounters industry in United Kingdom with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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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