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Discounters: More to Gain in Western Europe

Discounters: More to Gain in Western Europe
Photo: LZ Retailytics
Full Steam Ahead: The discounters in Europe will add another 10mn sq m of sales area by 2023.
There is no stopping the discounters: by 2021, the total sales area operated by discounters will exceed that of all hypermarkets across Europe, LZ Retailytics data shows. Despite an oversupply of grocery sales area in most major European markets, the discounters are planning to add another 10mn sq m to their store estates continent-wide by 2023. This increase is roughly equivalent to the current European footprint of French retail giant Carrefour.

The discounters’ biggest absolute sales gains in the coming five years will be seen in Russia, thanks to the rapid expansion of the local operators. X5’s Pyaterochka will be the second-largest growth driver in absolute terms even at a European level – ahead of the two Aldis – with only Lidl making larger gains.

Western Europe does not lag behind. The allegedly saturated German market will see the biggest increase in discount sales, remaining far ahead of the swiftly growing UK market. The softening of Lidl’s and Aldi’s concepts, combined with virtually endless financial means, will provide the big players with a variety of sales sources at their discretion – depending only on their willingness to compromise.

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Topics: Edeka Schwarz Group Jerónimo Martins Aldi X5 Retail Group