Big gains for UK discounters

Discounts are gaining more and more slice of Britain’s trade. The trend was also helped by the pandemic. Aldi UK is already competing for first place on the UK TOP list, and Lidl is aiming for the TOP 10.

Billions of pounds and market shares

Mintel says shoppers spent an estimated 24bn pounds at discounters, mainly at Aldi and Lidl. The researcher is also forecasting that the channel’s sales will top 31bn pounds in the next five years, an increase of almost 30%.  Aldi and Lidl, account for around 67% of the discount market (including food and non-food) and 13% of the total UK grocery market.

Younger generations prefer discounts

Mintel found that 86% of British consumers shop at a food discounter, rising to 90% of shoppers 16-24 years old. Driven by more than just value, only 28% of discount shoppers agree that prices are more important than quality.

“The food discounters have been immensely successful at communicating their value proposition to consumers over the last decade,” Mintel says. “The combination of low prices, good value, and a simple shopping experience has proven very popular with customers. Their famous brand-beating luxury items may garner the headlines and attract new shoppers, but it’s the streamlined range, simple shopping experience, and good value that keep those customers loyal. While the Covid-19 pandemic represents an unprecedented challenge for UK retailers, we expect the discount market, with its focus on value, to benefit from these challenging times”.

Aldi buys British

Aldi plans to increase the amount of food and drink it buys from British suppliers by 3.4bn pounds during the next five years. The retailer also says payment terms it introduced at the start of the coronavirus pandemic will be extended until the end of 2021, affecting more than 1,000 small British businesses.

Private label beats A-brands

A private label beauty brand has been named the UK’s favourite. A poll of 1,000 consumers found that Boots’ own brand No7 has been voted the UK’s favourite beauty brand. The brand, which was the first complete range launched by Boots in 1935 and is perhaps best known for its anti-ageing skincare products, beat beauty rivals including Nivea and L’Oréal.

The survey reported that the average British woman spends 384 pounds per year on beauty products including skincare, make up and perfume, while the average man spends about 308 pounds for yearly skin and hair care.