UK discounters continue to strengthen their offering and develop their business models resulting in new shoppers every week. According to IGD (Institute of Grocery Distribution) “the discount channel will deliver the biggest cash gain of any channel in the UK by 2020”. This sales growth is expected to be driven by: more store openings, further format flexibility, meaningful communication with shoppers and more investment in ranges.
Lidl UK recently announced it is investing £1.5bn in its UK market, looking to open 280 stores surrounding London as well as rolling out its new ‘store of the future’ concept. This new concept has a different feel compared with its traditional stores. Self-checkouts and customer toilets create a more inviting and shopper friendly feel to the stores. Aldi is also reaching new lengths, opening its largest UK store in Lincolnshire as well as announcing plans to add 130 stores by 2018 (which includes 80 stores in 2016) taking its store numbers in the UK to over 700.
According to new shopper research by IGD “27% of food discount shoppers perceive the quality of discounter brands to be similar to standard supermarket private label or better”. The increased quality perception as well as new initiatives is driving footfall to stores letting both Aldi and Lidl compete harder with the UK multiple retailers.
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Article Date: 11/03/2016 .