The UK consumers are now looking for more bargains to keep spending under their disposable income budget. The discount retailers market could gain an extra £9 billion of the total retail market as they become a more appealing destination for consumers.

According to the report, 89.4% of the UK population have shopped at a discount retails shops in the last 52 weeks’ categories like food & grocery (F&G), non-discretionary household goods and health & beauty (H&B) the most popular product categories with shoppers. Discount retailers like Aldi, Lidl and B&M Bargains dominate the market with a combined share of over 70%.

Food & grocery sector seen a strong growth over the past decade. The market value, worth £15.7bn in 2017, and will grow to £21.8bn by 2022. The discount market has taken advantage of this by extending their range of product gaining market share of frequently purchased items by changing the perception of discounter own label products for all consumer needs and growing their premium and fresh ranges to ensure that they can be a one-stop-shop for the weekly shop.

DIY & gardening and homewares are forecast to grow 46.6% and 42.6% respectively for the period 2017-2022, as discount market outlets gain marketplace proportion from mainstream DIY retailers via providing clients products at the lower price for household maintenance and upgrades. Consumers are in all likelihood to carry out fewer and smaller upgrades on their homes during the forecast period because of declining disposable earnings. This could advantage discount outlets homewares sales as they continue to improve their shopper attraction with the aid of growing their range and incorporating greater trends have an impact while ensuring affordability that is essential for using impulse and gifting purchases.

Contents of the Report

  • Table of Contents
  • The hot issues
  • What people buy
  • Where people buy
  • How people buy
  • Why people buy
  • Methodology

Key benefits of buying this profile include:

  • Utilise our five year forecasts to 2022 for the discounter retail channel, and sector penetration to help form an effective growth strategy.
  • Understand why the discount market has been so disruptive for the retail sector.
  • Consider our analysis of hot issues, strategies for success, and opportunities for growth to understand the future of the market and potential for discount retail.
  • Understand the discounter penetration for each category, and which are under/outperforming.
  • Review how the discount market is outperforming the retail market, the reasons for this, and whether growth is sustainable.
  • Recognise what consumers want from the retail sector, both discounter-specifically, and in the general retail perspective.

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