UK Food and Non-food Discounters market report
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Providing the most comprehensive and up-to-date information and analysis of the Food and Non-food Discounters market, and the behaviours, preferences and habits of the consumer.
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Covered in this report
We split the discount sector into two main segments: food and non-food.
The two national food discounters are Aldi and Lidl. There are also regional players such as Heron Foods and Netto (which ceased to exist in the UK, for the second time, in August 2016). The non-food discounters include those stores whose focus is on mixed goods, although for some, food can be one of their main product categories albeit confined almost entirely to ambient groceries with little or no fresh, chilled, or frozen products. Traditionally, the non-food discounter sector could be broken down into two further categories: fixed-price (poundshops) and multi-price. However, all national non-food discounters are now multi-price, albeit to varying degrees with a majority of products at Poundland still at the £1 price point. There do remain smaller regional fixed-price players, but this report is on those national players.
What is a discounter?
One challenge with the discount market that it is a broad term rather than a clearly identifiable segment.As a result, we have decided that the best way forward is to identify specific retailers that fall into our definition of a ‘Discounter’.Our definition of a discounter is a store uses price as its defining feature,it must also follow the discount model of having extremely tight cost control and very focused buying. Finally, it must, for the bulk of stock at least, deliver consistent product lines, so we exclude outlet stores like TK Maxx or Bargain Crazy.This means our market size is based on a fairly limited list, but we think is right because true ‘discounting’ is for large retailers, with smaller stores unable to truly achieve the economy of scale required.
Expert analysis from a specialist in the field
Written by Nick Carroll, a leading analyst in the Retail sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Overall the discount sector remains one of UK retail’s key growth areas. However, it is increasingly becoming a tale of two sides. The food discounters continue to put on exceptional growth, helped by store openings and the success of newer ranges such as premium. On the non-food side growth continues to slow, with Poundworld the latest high-profile failure in 2018. That is not to say there are not great opportunities in non-food discounting, B&M and Home Bargains are showing this, but too many in the sector have hung on to strategies that whilst successful during the recession, do not speak to the current demands of UK shoppers.
Senior Retail Analyst
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