GlobalData, recognized leader in providing business information and analytics, has predicted UK Discount Retail market is set to grow by 36.1 per cent reaching a total value of £32.5bn by 2022.
The data group reports that due to inflation, consumers are looking to squeeze more value out of their disposable income and are turning increasingly to budget retailers like B&M Bargains and Aldi, allowing them to gain an extra £9bn slice of the total retail market over the next few years.
“Our report findings confirm that discounters have done an exceptional job in gaining market share of frequently purchased items by changing the perception of discounter own label products in F&G while at the same time undercutting mainstream retailers on branded items in H&B and household," said Molly Johnson-Jones, senior food & grocery analyst from GlobalData Retail.
"This combined approach has proven to be very disruptive in the market and has contributed to their success.’’
89.4 per cent of the UK population have shopped at a discounter in the last 12 months, while Aldi, Lidl and B&M dominate the discount space with a combined market share of over 70 per cent.
Johnson-Jones added: “The discounters have expanded their range in the DIY & gardening market at a time when consumers are seeking reduced cost solutions for doing up their homes and gardens – B&M will particularly outperform in this area as it adds garden centres to its retail estate over the next few years.”