Extending stores has become crucial to grow sales at discounters. Much of the future sales gains will be driven by larger stores as the average store size of a discounter continues to rise all over Europe: growing from 692 sq m in 2014, it will extend to 736 sq m by 2023.
Unlike most full-assortment competitors, the discounters have more than one string to their bow to secure future growth. Enlarged sales areas allow the discounters to expand their ranges with more fresh, branded and added-value goods, as well as to specialise in premium or convenience retailing.
The new features enable them to improve their productivity, at store and square metre level, that is. As for efficiency, however, more complex ranges and services add costs, threatening to undermine the productivity gains.
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