A first look into Europe leads us to the differences between Western Europe and Eastern Europe.
For example, we see a smaller market share (22.7%) and lower market share growth (+0.8%) for Discounters in Western Europe compared to Eastern Europe (market share: 29.6%, market share growth: +3.8%). However, the figure for total sales in value is significantly higher in Western Europe ($136 Bn) compared to Eastern Europa ($56 Bn). Looking at the growth rate, once again Eastern Europe takes the lead with +11.5% versus only +2.0% for Western Europe.
To a large extent, most of the value and market share development in Europe can be attributed to the leading multinational retailers, in particular Aldi, Lidl and Penny. At least one of the mentioned retail brands can be found in every Western and Eastern European country, with the exception of Russia. Market entrance or growth strategies of Aldi or Lidl always result in a new dynamic in the respective country. Nevertheless, taking a closer look into different Western and Eastern European countries shows differences in market dynamic, market maturity and key players.
For example, Germany, the country of origin for retailers like Aldi and Lidl, sees an intense competition among Discounters and between Discounters and Supermarkets. However, for the second year in a row the growth rate for Discounters is significantly lower than the growth rate for Supermarkets (Discounters: -0.2%; Supermarkets: +1.7%). Poland has a growth rate for Discounters of +7.8%, with local player Biedronka being the market leader and multi-nationals as further market players. The UK witnesses Aldi and Lidl opening new stores and strongly increasing their market share with growth rates for Discounters above the Western European average. As already mentioned, France continues to be dominated by Hypermarkets and reports a small growth rate of only +2.4% for Discounters.
On the opposite, Denmark, the country with the highest value share of Discounters of all countries in this report (51%), observes Nordic players like Rema 1000 as well as multinational brands leading the market.
Double-digit value growth rates can be seen in countries such as Hungary (+20.1%), Romania (+19.1%) and Croatia (+16%). In Serbia, Lidl even managed to raise the total market share for Discounters within one year from 1,4 % to 7,2 %.
The four countries have in common that Lidl is the market leader.
All facts and figures allow us to draw a - relatively obvious - conclusion: Europe has been and will be the heartland of the Discounters and Discounter on the rise is especially true for Europe. However, there is room for growth for Discounters in Europe and there are opportunities to gain market share from competitors or other channels in the retail market as well.
With additional insights from GfK and Kantar experts, we now will look at the development of Discounters in selected countries.
The leading question is: What can be learned from the development in Europe, especially Germany and Russia. And what is different in different parts of the world, e.g. Colombia and China.
Market shares Discounter and growth rates in Europe in 2019