Value mania as discounters aimt to take another 9 billion pounds of consumer spend

‘Primania’ seems to be going nowhere fast, as consumers across the nation continue to favor discount fashion, beauty and homeware retailers. With fears of a hard Brexit looming interest in the UK discount retail market is only set to grow, as a new report from GlobalData indicates the sector is set to surge 36.1 percent to reach a total value of 32.5 billion pounds by 2022.

Interest in Aldi and B&M Bargains fashion ranges, as well as the launch of Heidi Klum’s new fashion range with Lidl, are all clear indications that discount retailers are aiming to take a large slice of the fashion piece. Discounters are likely to gain an extra 9 billion pounds of the total retail market as consumers disposable income continues to be squeezed by rising inflation, according to the report ‘UK Discounters 2017-2022’.

This predicted growth is good news for discount retailers such as B&M Bargains, Lidl, Aldi, who currently hold over 70 percent of the retail market share between them. Other discount retailers, such as Poundland, will also welcome this news as it aims to ramp up its fashion offering Pep & Co. 89.4 percent of the UK population are said to have shopped at a discounter over the last year, and although the discount fashion segment is growing, food and grocery, household goods and health and beauty remain the most popular categories with shoppers.

“Our report findings confirm that discounters have done an exceptional job in gaining market share of frequently purchased items by changing the perception of discounter own label products in food and grocery, while at the same time undercutting mainstream retailers on branded items in health and beauty and household ," said Molly Johnson-Jones, Senior Food & Grocery Analyst from GlobalData Retail. " This combined approach has proven to be very disruptive in the market and has contributed to their success.’’

Photo: courtesy of Esmara by Heidi Klum available at Lidl