Discounters Dominate in Germany

With a share of 31 per cent of sales, German discounters have succeeded in expanding their share of the retail food market in 2002 more than almost any other type of store. According to the 2002 discount store survey recently published by GfK Panel Services Consumer Research, more than half of this growth is accounted for by Aldi.

For about a decade, the number of discount stores in Germany has risen steadily to almost double. In the same time, their share of total retail food sales has leapt from 20 to 31 per cent. Top dog in the sector in 2002 with a share of over 50 per cent of total discount store sales is the undisputed market leader, Aldi. Unlike the discount stores, sales by all other forms of retailers were eroded this year.

In excess of 97 per cent of all households shopped at discount stores an average of 1.2 times per week. By September this year, each shopper had spent an average total of EUR 817 on fast moving consumer goods there. This equates to increased spending of more than 10 per cent by comparison with the previous year, with this level of growth represented in almost every product sector.

Discount stores now reach almost every consumer and therefore, every type of consumer. Particularly strongly represented are multi-member households, i.e. families with children who have a high demand for every possible type of fast moving consumer goods. This is a group which is increasingly seeking out the discount stores. The same also applies to a growing degree to younger consumers, some of whom are still in education and some of whom are young, working singles. Both groups are increasingly attracted to the Aldis, the Lidls, etc. In addition, the phenomenon known as the 'smart shopper' is on the march, on the lookout for a combination of bargains for daily consumer goods on the one hand and quality, brands and prestige products for those special occasions on the other. This group now also belongs to the core shopper target of the discount stores in Germany.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

• GfK Germany
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