Over the forecast period, discounters is expected to experience continued growth in the US in both current value terms and in constant value terms at 2023 prices. The channel will benefit from maintaining a value pricing model that also attracted higher-income consumers through the last two years of inflation.
In the US, the discounters channel is dominated by the German retailer Aldi. It continues to acquire share through its aggressive store expansion.
Private label has come a long way. Today, rather than black and white boxes containing the most basic of products, private label brands blend into the grocery aisle with their competitors, distinguished only by their lower prices.
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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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