Even if basket size and shopping frequency are not behind current Discounter share growth, the channel is still increasing in importance and is one in which brands should try and play.
But how and with which brands?
Shopping frequency in Discounters in Western Europe is increasing but only marginally
As shopping frequency returns to ‘normal’ after the pandemic, Discounters also see a small increase in how often shoppers visit. But the change is very small and share increases are much more driven by increased shopper numbers and higher than average price rises.
For the right brand, getting Discounter listings can be win-win
A mutually beneficial win-win position can be reached for brand listings at Discounters. There is little cannibalisation with buyer and volume incrementality for both parties. It provides the opportunity to buy that brand during a Discounter shopping trip rather than a different choice or no purchase.
For the right brand, Discounter listings can be win-win but what is ‘right’
There are a number of guidelines for turning a listing at Discounters into a win-win. First of all the brand or SKU must be growing or strong already – new listings don’t save a declining brand. It must be highly visible in store; at a discounter price point with a pack size to help justify the expected premium; and it must show innovation.