THE UK DISCOUNT SECTOR – TRENDS & IMPLICATIONS
Download
1 / 35

Prepared by Planet Retail | April 2005 - PowerPoint PPT Presentation


  • 99 Views
  • Uploaded on

THE UK DISCOUNT SECTOR – TRENDS & IMPLICATIONS. Prepared by Planet Retail | April 2005. West European Outlet Trends. Discount Stores. Number of discount stores in Europe by country, 1992 (% of total). The UK has seen its status as a discount market increase in recent years.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Prepared by Planet Retail | April 2005' - kobe


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Prepared by planet retail april 2005

THE UK DISCOUNT SECTOR – TRENDS & IMPLICATIONS

Prepared by Planet Retail | April 2005



Discount stores
Discount Stores

Number of discount stores in Europe by country, 1992 (% of total)

The UK has seen its status as a discount market increase in recent years

Number of discount stores in Europe by country, 2004 (% of total)

2004-01

3


Prepared by planet retail april 2005

Channel Development for Key Grocery Formats, 2004-2009 – Number of Outlets (W Euro)

Growth will continue over the next five years

2004-01

4


European market developments by channel leading retailers indices
European Market Developments by Channel, Leading Retailers (indices)

186.6 Discount Stores

181.8 Convenience & forecourt stores

179.9 Cash & carries

173.4 Hypermarkets & superstores

151.5 Supermarkets & neighbourhood stores

Leading retailers are planning to grow discount formats faster than others

2004-01

5


Discount stores discount store numbers in europe 1992 2008 no of stores
Discount Stores (indices)Discount store numbers in Europe, 1992 - 2008 (no. of stores)

The European discount channel will continue to see growth in store numbers…

2004-01

6


Discount sales discount store sales in europe 1992 2008 eur mn incl sales tax
Discount Sales (indices)Discount Store Sales in Europe, 1992-2008 (EUR mn; incl. sales tax)

…with sales to approach EUR140 billion…

2004-01

7


Prepared by planet retail april 2005
Discount Share (indices)Discount Store Market Shares in Europe, 1992-2008 (% of modern grocery distribution sales)

…and market share set to hit 11%.

2004-01

8


Prepared by planet retail april 2005

Number of New Stores, 2004-2009 (indices)

Discount Stores

The UK will continue to see reasonable discount channel growth, although it will be outpaced by more discount-centric markets.

2004-01

9


Discount stores1

14,407 (indices)

Discount Stores

No. of discount stores in Europe by country (no. of stores, 2004)

Although it is home to a reasonable number of discount stores, the UK lags other markets by a massive margin.

2004-01

10


Prepared by planet retail april 2005

Discount Stores (indices)

Food market share of discounters in Europe, 2004 (discounters’ food sales as % of modern grocery distribution, grocery sales)

Due to slow growth and low consumer enthusiasm for discount stores, market share has remained lower than average in the UK.

2004-01

11


Discounting in the uk key trends major players
Discounting in the UK (indices)Key Trends & Major Players

2004-01

12


Key trends
Key Trends (indices)

  • 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

2004-01

13


Key trends1
Key Trends (indices)

  • 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

2004-01

14


Growth trends store numbers
Growth Trends – Store Numbers (indices)

Discount Store Numbers, 1999-2009

Store numbers to resume upward trend after Kwik Save slimming is complete

2004-01

15


Growth trends total sales area
Growth Trends – Total Sales Area (indices)

Discount Store Sales Area (‘000 m2), 1999-2009

Similarly, sales area will resume upward progress as rivals take up Kwik Save slack

2004-01

16


Growth trends average sales area
Growth Trends – Average Sales Area (indices)

Discount Store Average Sales Area (m2), 1999-2009

Average store size will increase to extend product offers and improve the instore environment

2004-01

17


Growth trends retail banner sales
Growth Trends – Retail Banner Sales (indices)

Discount Store Retail Banner Sales (GBP mn), 1999-2009

Retail sales through the discount channel are poised to exceed GBP6 billion by 2009.

2004-01

18


Growth trends market share
Growth Trends – Market Share (indices)

Discount Store Market Share (%), 1999-2005

Slow growth and Kwik Save downsizing has seen sectoral market share slide

2004-01

19


Leading players 1999
Leading Players - 1999 (indices)

Leading Discounters by Stores, 1999

Kwik Save ended the 1990s with a clear advantage over its German/Scandinavian rivals.

2004-01

20


Leading players 2004
Leading Players - 2004 (indices)

Leading Discounters by Stores, 2004

By 2004, Lidl had overtaken Aldi and had closed the gap on the shrinking Kwik Save.

2004-01

21


Leading players 2009
Leading Players - 2009 (indices)

Leading Discounters by Stores, 2009

Growth plans suggest that Aldi will take top spot in outlet numbers by 2009.

2004-01

22


Leading players 19991
Leading Players - 1999 (indices)

Leading Discounters by Sales (GBP mn), 1999

Kwik Save enjoyed clear market leadership in 1999.

2004-01

23


Leading players 20041
Leading Players - 2004 (indices)

Leading Discounters by Sales (GBP mn), 2004

By 2004, Lidl had leapfrogged Aldi.

2004-01

24


Leading players 20091
Leading Players - 2009 (indices)

Leading Discounters by Sales (GBP mn), 2009

Aldi is on track for sector leadership.

2004-01

25


Leading players
Leading Players (indices)

Top Discounters by Market Share, 2005 (% of MGD grocery sales)

2004-01

26


Leading players kwik save
Leading Players – Kwik Save (indices)

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%

2004-01

27


Leading players kwik save1
Leading Players – Kwik Save (indices)

2004-01

28


Leading players lidl
Leading Players – Lidl (indices)

Website: www.lidl.co.uk

Retail sales, 2004: GBP1,311 million

No. of stores, 2004: 330

Average sales area: 837 sq. m.

Five-year growth rates, 2000/04

  • No. of stores: 32.0%

  • Retail banner sales: 48.5%

    Market share 2004: 1.30%

2004-01

29


Leading players lidl1
Leading Players – Lidl (indices)

2004-01

30


Leading players aldi
Leading Players – Aldi (indices)

Website: www.aldi-stores.co.uk

Retail sales, 2004: GBP1,080 million

No. of stores, 2004: 290

Average sales area: 800 sq. m.

Five-year growth rates, 2000/04

  • No. of stores: 20.8%

  • Retail banner sales: 18.7%

    Market share 2004: 1.07%

2004-01

31


Leading players aldi1
Leading Players – Aldi (indices)

2004-01

32


Leading players netto
Leading Players – Netto (indices)

Website: www.netto.co.uk

Retail sales, 2004: GBP536 million

No. of stores, 2004: 140

Average sales area: 650 sq. m.

Five-year growth rates, 2000/04

  • No. of stores: 13.8%

  • Retail banner sales: 11.4%

    Market share 2004: 0.53%

2004-01

33


Leading players netto1
Leading Players – Netto (indices)

2004-01

34