Variety discounters power ahead as they adapt their ranges
Variety discounters – Home Bargains, B&M, Poundland, Wilko and smaller players – will be worth £12.6 billion by 2022, up from £11.1 billion in 2020, according to IGD.
The channel will take a 5.8% share of the overall UK grocery market, thanks in no small part to the expansion of Home Bargains and B&M.
In January 2021, 66% of British shoppers claimed to have visited a variety discounter in the last four weeks to buy food and groceries and the number of shoppers using them has steadily increased since May 2020, following an initial drop as a result of coronavirus lockdown restrictions.
Lucy Ingram, Retail Analyst at Retail Analysis, IGD, says: “While toiletries, non-grocery household products and snacks are still most commonly found in variety discounter baskets, household grocery products are appearing more than they did a year ago. As a result, variety discounters are adapting their ranges.”
She adds: “In-store shopping at variety discounters is likely to remain the preference for both the consumer and the retailer.”
“Online retail presents both a challenge and an opportunity. The significant investment required doesn’t fit well with the variety discounter operating model, but Click and Collect and third party partnerships could emerge.”
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