The Discounter Opportunity:
For Retailers & Manufacturers
For decades, leading European discount retailers have advertised weekly limited quantity promotions of non-food items to excite shoppers and differentiate their stores. In recent years, these retailers have increased the frequency of promotions and extended product portfolios with more relevance for Home Improvement and Garden categories. The increased relevance, combined with a consistent increase in selling space both in stores and online means that the discounters are becoming more relevant for consumers of Home Improvement and Garden products.
While the leading discounters specialise in selling a wide range of private label products, there are some brands on offer amongst the non-food promotions. However, the shifting retail and distribution landscape support the case for a potentially stronger presence of national brands. The growth of eCommerce, the internet of things and new product categories make brands more relevant for many retailers. At the same time, the weakening of traditional distribution channels and shifting shopper loyalties mean that brands may also discover untapped growth opportunities in the discounter channel.
Competitive retailers may fear the rise of promotions in the discounters. Yet the temporary bursts of volumes and categories may in fact offer opportunities to build on changes in consumption and awareness. Moreover, the specific positioning of the discounter offer creates opportunities to enhance differentiation strategies that can build loyal shoppers.
During our workshop we will identify key elements for DIY & Garden manufacturers and retailers to consider as they look to leverage the growing relevance of the discounter channel around the world.