Groceries discounters under pressure?
Discounters have gained the highest market shares in Belgium and Germany, with 41% in both countries. Of course, it is generally well-known that Germany is the land of discounters. But even in other countries, German discounters are stirring up the market, with Aldi and Lidl on the front lines. For example, discounters have gained a foothold also in Denmark (37%), Norway (35%), and in Austria (29%).
At the tail end of the European market share ranking for groceries discounters are Italy (12%), France (10%), and the United Kingdom (only 8%). And elsewhere discounters are beginning to feel the pressure from the increasingly successful store brand strategies of ‘normal’ supermarkets. For discounters, this nullifies their unique selling proposition: ‘cheap’. Discounters are reacting by becoming more like ‘normal’’ supermarkets: wider product range, more fresh produce, an own bakery, pleasant atmosphere, etc. But in some countries, discounters have already hit the ceiling, generally said to be around 35%. This would mean that Germany, Belgium, and Denmark have already reached this limit.
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