Sales figures for discount stores on the rise

Over recent years the nation’s major supermarket giants, Tesco, Asda, Sainsbury’s, and Morrisons, have monopolised the industry, with the smaller stores barely getting a look in. However, with the global credit crunch still biting and many households finding it harder and harder to make ends meet it looks as thought the smaller discount stores are now enjoying a taste of the big time, with sales figures for a number of discount stores having soared recently.

Amongst the discount stores that are currently riding high on the back of the global credit crunch are Aldi, Netto, Lidl, and Iceland.

Many consumers have found that their tight household budgets mean that they can no longer afford to shop at the major supermarkets, particularly given the soaring cost of many food products. Many are therefore hoping to make their money go further by shopping at the cheaper discount stores at least for some of their products.

It is thought that as a result of the sharp rise in sales over the first half of this year some of the discount stores will step up their marketing and look at increasing the choice of products available in a bid to try and keep hold of the increased market share that they have gained. In the three months to August 12 Aldi saw sales growth of nearly 20%, Iceland saw sales grow by 14.4%, and Lidl enjoyed a 12.3% rise in sales.

One official said that the information gave the “clearest picture yet that retailers with a clear price message are posting the strongest performances.”

However, he added: “It is worth noting that this growth is entirely driven by new stores and new shoppers - spend levels for existing shoppers remain unchanged and quite low compared with the top four”.