In last week’s edition we looked at the rise in Private Label shares and what is driving the increase.

This week we turn to Discounters – how they are growing and why.

Discounter shares are growing due to the increase in store numbers

Since 2019, 25% more stores in Eastern Europe have fuelled continuous growth. A 5% rise in store numbers in Western Europe accounts for nearly all the share increase after a period of stability over the pandemic. Bearing in mind that Discounters have raised prices faster than average, the average volumes per store have dropped.

In Western Europe the increase in Discounter stores more than accounts for the increase in share

Discounter volume shares on average in the Big 6 Western Europe countries remain below pre-pandemic levels despite rises in Italy and UK. And even in these 2 countries the increase is below the increase in store numbers.

Discounter share growth is not related to price inflation by category

Correlating Discounter volume share change with price rises by product category shows that there is no relationship. Shoppers are making whole basket decisions rather than individual choices by product. So brands must try and work with Discounters in all categories.