The UK Value, Discount, Variety Stores and General Merchandise Retail report offers comprehensive insight and analysis of the value channel in the UK, the main trends and hot issues, major players and consumer shopping behaviour. It also provides forecasts to 2027 across key retail sectors.
The UK Value, Discount, Variety Stores and General Merchandise Retail channel is set to grow close to 5% per year over the next five years as more shoppers turn to value-focused retailers to make their budgets stretch further during the cost-of-living crisis. This demand is being met with major investments from operators to make their retail propositions more compelling with improvements to pricing, promotions, ranging and the in-store customer experience. Store network expansion will also play a vital role in supporting the forecast growth as operators broaden their geographic reach and develop new formats to boost their presence in urban areas.
Food & Grocery will be the driving force in the channel over the forecast period, with Aldi and Lidl set to grow their combined sales over the next five years as they deliver on their expansion programmes and more shoppers turn to them to economise on their weekly grocery shop. After food & grocery, the home sector is set to achieve the biggest cash gain in sales of over the next five years as shoppers turn to discounters to make affordable improvements to their living space. With discretionary purchases limited by the failure of incomes to keep pace with inflation and steep rises in mortgage repayments impacting homeowners, value retailers are well placed to capitalize on demand for competitively priced items for the home.
The fastest non-food growth will however come from the clothing & footwear and health & beauty categories as discounters develop these categories to fulfill more customer needs. While the challenging outlook for consumers supports demand for discounters in the short term, longer-term prospects will depend on their underlying competitiveness. Key here will be a relentless focus on operational efficiency to enable low prices and compelling promotions.
The UK Value, Discount, Variety Stores and General Merchandise Retail channel is set to grow close to 5% per year over the next five years as more shoppers turn to value-focused retailers to make their budgets stretch further during the cost-of-living crisis. This demand is being met with major investments from operators to make their retail propositions more compelling with improvements to pricing, promotions, ranging and the in-store customer experience. Store network expansion will also play a vital role in supporting the forecast growth as operators broaden their geographic reach and develop new formats to boost their presence in urban areas.
Food & Grocery will be the driving force in the channel over the forecast period, with Aldi and Lidl set to grow their combined sales over the next five years as they deliver on their expansion programmes and more shoppers turn to them to economise on their weekly grocery shop. After food & grocery, the home sector is set to achieve the biggest cash gain in sales of over the next five years as shoppers turn to discounters to make affordable improvements to their living space. With discretionary purchases limited by the failure of incomes to keep pace with inflation and steep rises in mortgage repayments impacting homeowners, value retailers are well placed to capitalize on demand for competitively priced items for the home.
The fastest non-food growth will however come from the clothing & footwear and health & beauty categories as discounters develop these categories to fulfill more customer needs. While the challenging outlook for consumers supports demand for discounters in the short term, longer-term prospects will depend on their underlying competitiveness. Key here will be a relentless focus on operational efficiency to enable low prices and compelling promotions.
Scope
- Food & grocery to drive channel growth as shoppers look to save money on essential spend
- Home sector to benefit from need for value but strongest non-food growth will come from apparel and health & beauty
- Efficiency and customer focus are key for long term competitiveness
Reasons to Buy
- Use our in-depth consumer and market insight to learn about the growth of the value, discount, variety stores and general merchandise retail in the UK
- Find out which sectors are growing fastest in the UK Value, Discount, Variety Stores and General Merchandise market
- Discover which retailers have the greatest market share, and the outlook for named retailers
Table of Contents
- Executive summary
- KEY TRENDS
- Market drivers
- Market inhibitors
- Key Trends: Cost-of-living crisis boosts demand for value retail
- Key Trends: Half of shoppers taking actively trading down in essential sectors
- Key Trends: UK shoppers look to discounters for cheaper food and groceries amid cost-of-living crisis
- Key Trends: Discounters act to maintain advantage gained from cost-of-living crisis
- Key Trends: Online shopping
- Key Trends: Improving public opinion by addressing ESG issues
- Strategies for Success
- MARKET SIZE AND FORECASTS 2022-2027
- UK Value, Discount, Variety Stores and General Merchandise retail market, 2017, 2022 & 2027
- UK Value, Discount, Variety Stores and General Merchandise retail market, five-year growth 2016-2026
- UK Value, Discount, Variety Stores and General Merchandise retail market, online and offline
- UK Value, Discount, Variety Stores and General Merchandise retail market size, 2017-2027
- CATEGORY PERFORMANCE AND FORECASTS 2022-2027
- Key category trends
- UK Value, Discount, Variety Stores and General Merchandise retail categories
- UK Value, Discount, Variety Stores and General Merchandise retail market by category %, 2017-2027
- UK Value, Discount, Variety Stores and General Merchandise retail category segment value and forecast, 2017, 2022 & 2027
- COMPETITIVE LANDSCAPE: RETAILER USAGE
- UK Market shares of top 10 Value, Discount, Variety Stores and General Merchandise retailers, 2021-2022
- Top 10 Value, Discount, Variety Stores and General Merchandise retail retailers, 2020-2022
- UK Value, Discount, Variety Stores and General Merchandise retailers Retailer Prospects
- CONSUMERS
- Key consumer trends
- UK Value, Discount, Variety Stores and General Merchandise Retailers' Penetration & Profile, 2022
- UK Value, Discount, Variety Stores and General Merchandise Category Penetration, 2022
- UK Value, Discount, Variety Stores and General Merchandise Channel Usage, 2022
- UK Value, Discount, Variety Stores and General Merchandise Usage Frequency, 2022
- UK Value, Discount, Variety Stores and General Merchandise Drivers 2022
- UK Value, Discount, Variety Stores and General Merchandise Retailer Usage, 2022
- How UK consumers expect their shopping habits at discounters to change, 2022
- Why consumer spend has increased at the discounters compared to 12 months ago, 2022
- Why consumer did not shop at a discounter store in the last 12 months, 2022
- UK Value, Discount, Variety Stores and General Merchandise Statements, 2022
- Interest in Aldi and Lidl, 2022
- Aldi shopper consumer behaviour, 2022
- Lidl shopper consumer behaviour, 2022
- METHODOLOGY, DEFINITIONS AND CONTACTS
- Methodology
- Definitions
- Contact the Publisher
- UK retailers online shopping information, 2023
- UK Value, Discount, Variety Stores and General Merchandise retail category segment value and forecast, 2017, 2022 & 2027
- Top 10 UK Value, Discount, Variety Stores and General Merchandise retail retailers, 2020-2022
- Retailer Prospects in the UK Value, Discount, Variety Stores and General Merchandise retail
- UK Value, Discount, Variety Stores and General Merchandise Category Penetration %, by demographic, 2022
- UK Value, Discount, Variety Stores and General Merchandise Channel Usage %, by demographic, 2022
- UK Value, Discount, Variety Stores and General Merchandise Drivers %, by demographic, 2022
- UK: Over the next 6 months how do you expect your own personal finances to change, 2023
- With the price of goods rising in 2022 and expected to remain high in 2023, how do you think your shopping habits have changed or will change for food, grocery and toiletries, 2023
- UK: Which of the following do you expect to be spending more than normal on over the next six months, 2023
- UK: Which retailer will you be switching to for your food & grocery shopping (discounters), 2023
- UK: Agreement on ESG issues, 2022
- UK: Would you consider paying more for products or services that support various causes, 2022
- UK Value, Discount, Variety Stores and General Merchandise retail market, GBP bn, 2017, 2022, 2027 & CAGR %
- UK Value, Discount, Variety Stores and General Merchandise retail market, five-year growth 2016-2026
- UK Value, Discount, Variety Stores and General Merchandise retail market, online and offline, 2017, 2022, 2027
- UK Value, Discount, Variety Stores and General Merchandise retail market value GBP bn, 2017-2027
- UK Value, Discount, Variety Stores and General Merchandise retail market growth %, 2017-2027
- UK Value, Discount, Variety Stores and General Merchandise retail categories by value GBP m, 2022 & 2027
- UK Value, Discount, Variety Stores and General Merchandise retail categories by value growth %, CAGR 2022-2027
- UK Value, Discount, Variety Stores and General Merchandise retail market by category %, 2017-2027
- Market shares of top 10 UK Value, Discount, Variety Stores and General Merchandise retailers, 2021-2022
- UK Value, Discount, Variety Stores and General Merchandise Shopper Penetration %, 2022
- UK Value, Discount, Variety Stores and General Merchandise Shopper Profile %, 2022
- UK Value, Discount, Variety Stores and General Merchandise Category Penetration %, 2022
- UK Value, Discount, Variety Stores and General Merchandise Channel Usage %, 2022
- UK Value, Discount, Variety Stores and General Merchandise Usage Frequency %, 2022
- UK Value, Discount, Variety Stores and General Merchandise Drivers %, 2022
- Top 10 UK Value, Discount, Variety Stores and General Merchandise among consumers %, 2022
- How UK consumers expect their shopping habits at discounters to change %, 2022
- Why consumer spend has increased at the discounters compared to 12 months ago %, 2022
- Why consumer did not shop at a discounter store in the last 12 months %, 2022
- UK Value, Discount, Variety Stores and General Merchandise Statements, 2022
- Interest in switching to Aldi and Lidl %, 2022
- When did consumers start shopping at Aldi %, 2022
- Main categories that consumers shop for at Aldi %, 2022
- When did consumers start shopping at Lidl %, 2022
- Main categories that consumers shop for at Lidl %, 2022
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Aldi
- Amazon
- Argos
- ASDA
- B&M
- Bargain Buys
- Boots
- Dunelm
- Flying Tiger Copenhagen
- Home Bargains
- Iceland
- IKEA
- John Lewis & Partners
- Lidl
- Marks & Spencer
- Morrisons
- Poundland
- Poundshop.com
- Poundstretcher
- Sainsbury's
- Savers
- Superdrug
- Tesco
- The Original Factory Shop
- The Range
- The Works
- TK Maxx
- Very
- Waitrose & Partners
- WH Smith
- Wickes
- Wilko
