Discount strategies in fastidious England

According to a recent Nielsen survey, three out of four English consumers tare trying to economise on their food expenditure, whereas only 45 per cent were doing this a year ago. This is good news for discount stores. Only 39 per cent of consumers interviewed last year actually noticed that food prices were rising. Today, this figure is 73 per cent. English consumers are expected to become increasingly price-sensitive. At present, discount stores only account for 5 per cent of the FMCG market in the UK, but their sales increased by 16.3 per cent last year. Aldi follows the strategy of limited assortment, with seven products per category on average in Europe, while Lidl has 13 products per category. The limited number of products allows enormous quantities to be produced and purchased economically, which translates into low consumer prices. As a result of more attractive store interiors and wider assortments than before, discount stores have begun to attract a wider range of consumers in the UK. The number of visitors to their web sites increased by 35 per cent last year. Discounts stores are increasing their sales at the expense of other major retail chains. The average basket value in a British discount store is GBP 15, whereas it is only GBP 11 in the Co-op chain. Discounts are expected to continue expanding their assortments. Low prices are not the only reason behind the increasing popularity of discount stores, their more attractive assortment and interior than before is also important to consumers.