Discounters are benefiting from their reputation for having low prices. With the Dutch economy expected to remain under pressure at least in the short term it is likely that more consumers will switch to buying their weekly shopping through discounters rather than supermarkets.
Discounters like Aldi could be threatened by a lack of innovation in terms of their product and service offering. On the one hand, discounters fare well on a business model that prioritises simplicity and low pricing.
Discounters are not only using their reputation as having low prices to boost sales, but they are also increasingly using promotional activities to attract shoppers into their stores. This is likely to continue over the forecast period.
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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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