Table of Contents
Executive Summary
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- The market
- Discounters
- Market size and forecast
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- Figure 1: All discounters’ sector size (£m excl VAT), 2010-20
- Discounters and the economy
- Companies, brands and innovation
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- Figure 2: Discounters’ market shares, 2014
- Product mix
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- Figure 3: Non-food discounters’ estimated product mix, 2014
- Innovation
- Online
- The consumer
- Where people shop
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- Figure 4: Discounters: Frequency of visits, July, 2015
- Figure 5: Repertoire of shopping frequency, July 2015
- Products bought
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- Figure 6: Products bought from food and non-food discounters in the last three months, July 2015
- Appeal of discounters
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- Figure 7: Consumer attitudes towards discounters, July 2015
- What would make people shop at discounters more?
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- Figure 8: What would make people shop at discounters more, July 2015
- What we think
- Challenging
- Not just about bargains
- Fitting in with the convenience trend
Issues and Insights
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- Is the non-food discount sector already overshopped?
- The facts
- The implications
- Who are they really in competition with?
- The facts
- The implications
- How are the underlying trends in the marketplace affecting the non-food discounters?
- The facts
- The implications
- Can the food discounters continue their dramatic growth?
- The facts
- The implications
- Is there a place for online in discount retailing?
- The facts
- The implications
The Market – What You Need to Know
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- Rapid growth
- Not just a product of the recession
- Keys to success
- Looking forward
Market Size and Forecast
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- Figure 9: Discounters’ market size, 2009/10-2014/15
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- Figure 10: Food and non-food discounters’ share of retail sales, 2009-14
- Much more than a product of the recession
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- Figure 11: UK: GDP growth at constant prices, 2005-15
- How do they do it?
- Aldi/Lidl
- Non-food discounters – The multi-price model
- Non-food discounters – The fixed-price model
- The forecast
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- Figure 12: All discounters’ sector size (£m excl VAT), 2010-20
- Figure 13: Sales and forecast: All discounters, 2010-20
- Segmental analysis – Food discounters
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- Figure 14: Food discounters’ sector size (£m excl VAT), 2010-20
- Figure 15: Sales and forecast: Food discounters, 2010-20
- Segmental analysis – Non-food discounters
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- Figure 16: Non-food discounters’ sector size (£m excl VAT), 2010-20
- Figure 17: Sales and forecast: Non-food discounters, 2010-20
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The Consumer – What You Need to Know
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- The appeal of a bargain
- Very wide use
- So much more than for those just short of cash
- Broad product appeal
- Where could they do better?
Who Shops Where?
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- Figure 18: Discounters: Frequency of visits, July 2015
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- Figure 19: Repertoire of shopping frequency, July 2015
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- Figure 20: Profile of customers who have bought from leading discounters in the last three months, July 2015
- Discounters by region
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- Figure 21: Discounters: Regional strengths and weaknesses, July 2015
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Products Bought
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- Figure 22: Products bought from any discounter in the last three months, July 2015
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- Figure 23: Products bought from food and non-food discounters in the last three months, July 2015
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- Figure 24: Profile of food and non-food discounter shoppers, by products bought, July 2015
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- Figure 25: Discounters used, by products bought, July 2015
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Why Do People Shop at Discounters?
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- Figure 26: Consumer attitudes towards discounters, July 2015
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- Figure 27: Consumer attitudes towards discounters, by discounter shopped at, July 2015
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What Would Make People Shop at Discounters More?
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- Figure 28: What would make people shop at discounters more, July 2015
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- Figure 29: What would make people shop more at discounters, by where they already shop, July 2015
- Poundland vs 99p Stores
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Why Do People Not Shop at Discounters?
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- Figure 30: Why consumers hadn’t shopped at a discounter in the last three months, July 2015
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Key Players – What You Need to Know
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- Aldi and Lidl driving all before them
- Poundland leads the field in fixed-price discounters
- B&M and Home Bargains the leaders in multi-price discounting
- Online – Most are trying to do it
Key Players
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- Figure 31: Leading discounters’ sales, 2009/10-2014/15
- Figure 32: Leading discounters’ operating profits, 2009/10-2014/15
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- Figure 33: Leading discounters’ operating margins, 2009/10-2014/15
- Figure 34: Leading discounters’ outlet numbers, 2009/10-2014/15
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- Figure 35: Leading discounters’ sales per outlet, 2009/10-2014/15
- Figure 36: Leading discounters’ sales per sq m, 2009/10-2014/15
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Innovation and Launch Activity
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- Instant reward scheme
- Retailers responding to changing consumer shopping habits…
- …new discount grocery chain targeting value-conscious shoppers
- …new chain of low-priced clothing stores
- …discount second-hand jewellery chain
- …department store group launches chain of discount stores
- …‘like-new’ products discount outlet
- Former Asda chief launches discount fashion chain
- Fixed-price discounter focusing on suburban locations
- Store on stilts
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- Figure 37: Lidl, Terenure, Ireland
- Pop-up discount store
- Specialty food discount store
- Online pound shops
Brand Communication and Promotion
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- Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure by the UK’s leading discounters, 2010-14
- Top advertisers
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- Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure by leading UK discounters, 2010-14
- Share of advertising spend
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- Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure by the UK’s leading discounters, by media type, 2011-14
- A note on adspend
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Online
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- Figure 41: Discounters with transactional websites, 2015
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Space Allocation Summary
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- Figure 42: Food discounters: Summary space allocation estimates, August 2015
- Figure 43: Fixed-price non-food discounters: Summary space allocation estimates, August 2015
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- Figure 44: Multi-price non-food discounters: Summary space allocation estimates, August 2015
- Figure 45: Discounters: Detailed space allocation estimates, August 2015
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Retail Product Mix
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- Food discounters
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- Figure 46: Food discounters’ estimated product mix, 2014
- Non-food discounters
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- Figure 47: Multi-price non-food discounters‘ estimated product mix, 2014
- Figure 48: Fixed-price non-food discounters’ estimated product mix, 2014
- Sales densities
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- Figure 49: Leading discounters, estimated sales densities, 2014
Market Shares
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- Figure 50: Discounters’ market shares, 2012-14
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99p Stores Ltd
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- What we think
- Background
- Company performance
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- Figure 51: 99p Stores Ltd: Group financial performance, 2009/10-2013/14
- Figure 52: 99p Stores Ltd: Outlet data, 2009/10-2013/14
- Retail offering
Aldi Stores Ltd (UK & Ireland)
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- What we think
- Why is Aldi doing so well?
- How does it do it?
- Where next?
- Background
- Company performance
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- Figure 53: Aldi Stores Ltd (UK & Ireland): Group financial performance, 2009/10-2013/14
- Figure 54: Aldi Stores Ltd (UK & Ireland): Outlet data, 2009/10-2013/14
- Retail offering
B&M Retail
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- What we think
- Background
- Company performance
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- Figure 55: B&M European Value Retail: Group financial performance, 2011/12-2014/15
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- Figure 56: B&M European Value Retail: Outlet data, 2011/12-2014/15
- Retail offering
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- Figure 57: B&M sales mix, 2013
- Figure 58: B&M sales mix, by product price, 2013
Home Bargains (TJ Morris Ltd)
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- What we think
- Background
- Company performance
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- Figure 59: TJ Morris Ltd: Group financial performance, 2009/10-2014/15
- Figure 60: TJ Morris Ltd: Outlet data, 2009/10-2014/15
- Retail offering
Lidl (UK)
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- What we think
- Background
- Company performance
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- Figure 61: Lidl (UK): Estimated group financial performance, 2010/11-2014/15
- Figure 62: Lidl (UK): Outlet data, 2010/11-2014/15
- Retail offering
Poundland Ltd
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- What we think
- Background
- Company performance
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- Figure 63: Poundland Ltd: Group financial performance, 2010/11-2014/15
- Figure 64: Poundland Ltd: Outlet data, 2010/11-2014/15
- Retail offering
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- Figure 65: Poundland product mix, 2014
Poundstretcher
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- What we think
- Background
- Company performance
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- Figure 66: Poundstretcher: Group financial performance, 2009/10-2013/14
- Figure 67: Poundstretcher: Outlet data, 2009/10-2013/14
- Retail offering
Poundworld Retail Ltd
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- What we think
- Poor performance
- TPG buying in
- Where next?
- Background
- Company performance
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- Figure 68: Poundworld Retail Ltd: Group financial performance, 2009/10-2014/15
- Figure 69: Poundworld Retail Ltd: Outlet data, 2009/10-2014/15
- Retail offering
The Original Factory Shop Ltd
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- What we think
- Background
- Company performance
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- Figure 70: The Original Factory Shop Ltd: Group financial performance, 2009/10-2014/15
- Figure 71: The Original Factory Shop Ltd: Outlet data, 2009/10-2014/15
- Retail offering
Wilkinson Hardware Stores Ltd
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- What we think
- Background
- Company performance
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- Figure 72: Wilkinson Hardware Stores Ltd: Group financial performance, 2010/11-2014/15
- Figure 73: Wilkinson Hardware Stores Ltd: Outlet data, 2010/11-2014/15
- Retail offering
Appendix – Data Sources and Abbreviations
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- Data sources
- Mintel’s discounter market size
- Forecast methodology
- Financial definitions
- VAT
- Abbreviations
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