growth trends – total sales area discount store - planetretailnet.ppt

West European Outlet Trends Discount Stores Discount StoresDiscount store numbers in Europe, 1992 - 2008 (no. of stores) Discount SalesDiscount Store Sales in Europe, 1992-2008 (EUR mn; incl. sales tax) Discount ShareDiscount Store Market Shares in Europe, 1992-2008 (% of modern grocery distribution sales) Discount Stores Key Trends Hard discounting has been slow to take off in the UK, as mainstream grocery retailers have introduced economy private label ranges (benchmarked in price against the discounters) The British shopper has been reticent in exploiting the discount channel, preferring instead the tidier supermarkets with their well-known brands Consumer acceptance of discounters will increase over time Immigration – from Eastern Central Europe in particular – will drive traffic within the hard discount channel Manufacturers are slowly being impacted by the channel as its key players demand shelf-ready or pallet-mounted product Key Trends Soft discounter Kwik Save is set to continue its decline. Post-merger problems and ongoing portfolio rationalisation have seen it significantly shrink Aldi and Netto are set for dramatic growth, actively seeking out hundreds of new stores between them Future growth will focus on regions such as Scotland, Wales and Northern England The growth of discounters will see product mix shift from brands towards private label products Growth Trends – Store Numbers Growth Trends – Total Sales Area Growth Trends – Average Sales Area Growth Trends – Retail Banner Sales Growth Trends – Market Share Leading Players - 1999 Leading Players - 2004 Leading Players - 2009 Leading Players - 1999 Leading Players - 2004 Leading Players - 2009 Leading Players Leading Players – Kwik Save Website: www.kwiksave.co.uk Retail sales, 2004: GBP1,748 million No. of stores, 2004: 520 Average sales area: 738 sq. m. Five-year growth rates, 2000/04 No. of stores: -29.2% Retail banner sales: -11.5% Market share 2004: 1.73% Leadi