With Rema 1000 having taken over a number of Aldi stores, the chain has announced its plans to become the leading discounter in Denmark. Competition is set to intensify in the discounters channel over the forecast period, with players not only increasing the number of outlets in their store networks, but also seeking to improve the customer’s experience by having stores that feel more inviting and less like traditional discounters.
Building on rising consumer interest resulting from challenging economic conditions towards the end of the review period, private labels are expected to become an increasingly important strategic focus for the major discounters over the forecast period. It is expected that players will continue to introduce new private label products over the forecast period in order to improve margins.
Danish discounters have yet to embrace e-commerce and currently only Rema 1000 is offering online shopping, although the chain does not use traditional delivery methods, but has created the platform, Vigo, where consumers can have their groceries delivered by other Rema 1000 customers. To bypass the constraints of conventional models, including high operational costs, Rema 1000 designed an alternative approach, with its app and platform enabling a purely community-driven delivery model.
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Understand the latest market trends and future growth opportunities for the Discounters industry in Denmark 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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