High inflation seen in 2022 (13%) was really felt by consumers in 2023, and they started to reduce their consumption and prioritised essential food items over other products. Discounters will also be affected by the slowdown in consumption going forward; however, their focus on cheaper private label lines is likely to prevent a significant drop in sales in current value terms.
Even though consumers are not willing to pay more, especially given the current economic situation, environmental concern and sustainable development is an increasing focus of retailers, and this is expected to continue to be an essential part of discounters’ strategies as they seek to cut costs and reduce waste. The discounter Ara, for instance, is actively investing in social responsibility initiatives, including collaborating with local food banks, and since 2021 has donated over 700 tonnes of food.
Even discounters are not immune to competition and market challenges, and they must continue to evolve to stay competitive despite their benefits of proximity and low prices. Their business model has evolved since the pandemic, including the development of e-commerce by market leaders, which has caused some loss of efficiency (due to occasional stockouts).
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Understand the latest market trends and future growth opportunities for the Discounters industry in Colombia 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 DefinitionsThis report originates from Passport, our Discounters research and analysis database.
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