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Editor: Jacob Howard
ISBN:
1-84168-133-4

This report covers: discount grocery retailers, discount non-grocery retailers, preferred day for grocery shopping, distance travelled for grocery shopping, frequency of grocery shopping, expenditure levels on grocery shopping
Companies covered include: Aldi Stores, Costco Wholesale UK, Netto Foodstores, Lidl, Matalan, New Look Group, Brown & Jackson, Primark Stores, Peacock's Stores, TK Maxx, TJ Hughes, Bon Marche, The Ise Group, Merchant Retail Group, QS Group, TJ Norris, PKG Holdings, Bargain Booze, Topps Tiles, The Officers Club, Richleys (Out of Town), Wilkinson, Home Bargains, Poundland, McArthur Glen, MEPC, OCI, Value Retail
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This report on discount retailing concerns discount grocery retailers and non-grocery retailers, and details the continued prosperity of factory outlet centres. In 1999, total sales for discount retailers in the UK were recorded at £1.24bn, a rise of 45.8 percent since 1995.
Since the first edition of this report was published in 1999, there has been an increase in the number of British consumers who visit factory outlet centres and patronise the rapidly-growing discount chains such as Matalan PLC, TK Maxx and TJ Hughes PLC. In part, this has been due to the fact that the major chains have expanded their branch networks significantly over the last 18 months (through acquiring newly-vacated larger town properties following the exit of C&A from the UK and the restructuring of chains such as Littlewoods). The number of factory outlet centres in the UK has increased to over 35 and most people can reach a factory outlet development within a 2-hour drive. Finally, the factory outlet centres have become more attractive to consumers, as the number of retailers establishing factory outlets has grown significantly and now includes major High Street brands such as Marks & Spencer and Body Shop.
In the grocery discount sector, the major discounters, including Lidl Ltd, Netto Foodstores Ltd and Aldi Stores Ltd, have largely peaked. Unlike on the Continent, where most of the discount food chains originate, the British consumer has largely moved on from shopping at various independent butchers, grocers and fishmongers and has become used to one-stop shopping. Additionally, competitor low-price chains such as Costco Wholesale UK Ltd and ASDA (and latterly Wal-Mart) have a wide product mixture, including low-end, mass-market and higher-end products.
The non-grocery discount sector has expanded extensively across the country with new branches, as well as moving into home shopping, catalogue shopping and electronic commerce (e-commerce). Following this period of rapid expansion, many discount retailers, such as Brown & Jackson PLC, are now targeting continental Europe for expansion.
This overseas expansion indicates that in some respects the UK market has become saturated. Demand for discount retailers has peaked and the non-grocery discount chains have now achieved nationwide coverage. Factory outlet centres are nearing saturation and therefore it is expected that future growth will depend on, on the one hand, the discount chains such as Matalan PLC reinforcing their image as national retail brands, and on the other hand, the factory outlets continuing to encourage consumers to visit them rather than traditional malls and out-of-town retail clusters.
In 2000, discount retail sales were expected to rise by 22.3 percent, to £1.52bn. Sales are forecast to rise to £3.92bn by 2004.
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Executive Summary |
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| INTRODUCTION | |
| MARKET SECTORS | |
| Discount Grocery Retailers | |
| Discount Non-Grocery Retailers | |
| MARKET POSITION | |
| Table 1: Trends in UK Retail Sales at Current Prices (£m and percent), 1995-1999 | |
| MARKET TRENDS | |
| Traditional Retailers Attempt to Look More Like Discounters | |
| Discounters Eat into Traditional Retailers Shares | |
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| THE TOTAL MARKET | |
| BY MARKET SECTOR | |
| Table 2: Discount Retail Sales by Sector at Current Prices (£m), 1995-1999 | |
| A GLOBAL PERSPECTIVE | |
| US | |
| Europe | |
| Asia | |
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| RECENT HISTORY | |
| Discounting | |
| International Influences on Grocery Discounting | |
| Factory Outlet Retailing | |
| INDUSTRY CONCENTRATION | |
| TRADE ASSOCIATIONS | |
| British Retail Consortium | |
| The Institute of Grocery Distribution | |
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| THE MARKETPLACE | |
| MARKET LEADERS | |
| Table 3: Major UK Discount Retailers by Turnover (£000), 1998/1999/2000 | |
| DISCOUNT GROCERS | |
| Aldi Stores Ltd | |
| Costco Wholesale UK Ltd | |
| Lidl Ltd | |
| Netto Foodstores Ltd | |
| DISCOUNT NON-GROCERS | |
| Bargain Booze Ltd | |
| Bon Marche Ltd | |
| Brown & Jackson PLC | |
| Home Bargains | |
| Matalan PLC | |
| Merchant Retail Group PLC | |
| New Look Group PLC | |
| The Officers Club Ltd | |
| Peacocks Stores Ltd | |
| PKG Holdings Ltd | |
| Poundland Ltd | |
| Primark Stores Ltd | |
| QS Group PLC | |
| Richleys (Out of Town) Ltd | |
| TJ Hughes PLC | |
| TK Maxx | |
| Topps Tiles PLC | |
| Wilkinson PLC | |
| ADVERTISING AND PROMOTION | |
| and 2000 | |
| and 2000 | |
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| STRENGTHS | |
| WEAKNESSES | |
| OPPORTUNITIES | |
| THREATS | |
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| INTRODUCTION | |
| SHOPPING PATTERNS | |
| Shopping Days | |
| Shopping (000 and percent of adults), 2000 | |
| Distance Travelled to Shop | |
| (000 and percent of adults), 2000 | |
| Frequency of Shopping | |
| (000 and percent of adults), 2000 | |
| Personal Selection | |
| (000 and percent of adults), 2000 | |
| Mode of Transport | |
| (000 and percent of adults), 2000 | |
| Expenditure Levels | |
| in the Last Week (000 and percent of adults, housewives and men), 2000 | |
| to the Industry | |
| OUTLET CENTRE DEVELOPERS | |
| Freeport Leisure PLC | |
| McArthur Glen | |
| MEPC | |
| OCI | |
| Value Retail PLC | |
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| CLOTHING SALES | |
| AND NEW STORES | |
| NEW STORE OPENINGS | |
| Marks & Spencer | |
| Body Shop | |
| Long Tall Sally | |
| Virgin Clothing | |
| The Virtual Factory Outlet | |
| NEW OUTLET CENTRES | |
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| FACTORS INFLUENCING DEMAND | |
| FORECASTS 2000-2004 | |
| Table 12: Forecast Discount Retail Sales at Current Prices (£m), 2000-2004 | |
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| Aldi Stores Ltd | |
| Brown & Jackson PLC | |
| Costco Wholesale UK Ltd | |
| Matalan PLC | |
| Netto Foodstores Ltd | |
| Peacock's Stores Ltd | |
| QS Group PLC | |
| TJ Hughes PLC | |
| TK Maxx | |
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| Associations | |
| Periodicals | |
| Directories | |
| General Sources | |
| Bonnier Information Sources | |
| Government Publications | |
| Other Sources | |
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Understanding TGI Data |
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| Number, Profile, Penetration | |
| Social Grade | |
| Standard Region | |
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Key Note Research |
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Text © 2000 Key Note
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© 2000 www.the-list.co.uk Ariadne
Last updated by Jacob van Eldik 22th November 2000