Discount stores will grow above 7% annually
In the years 2021-2026, discount stores will be the fastest-growing channel on the grocery market in Poland, according to PMR’s latest forecasts included in the report “Retail food products in Poland 2021: Market analysis and growth forecasts for 2021-2026”. The average annual growth rate (CAGR) in this segment will exceed 7%.
More than 500 new discount stores in 2021
Since 2008, the number of new units in the discount channel has steadily increased. Between 2010 and 2014, it was an increase of 200-300 stores per year, and between 2015 and 2019, by more than 100 stores. In 2020, the growth again exceeded 200 stores, more than half of which were generated by Biedronka. In 2021, we forecast a large increase in the number of stores in the channel – by more than 500 stores, driven by Netto’s acquisition of Tesco stores and their change to a discount format under the chain’s brand.
Although the saturation of the channel is gradually increasing, it should be noted that PMR forecasts still indicate growth of the discount channel at a rate above that of the entire market. The strengths of discounters include, above all, an offer that meets customers’ needs ( private labels at a lower price or in a premium version, branded products of a particular grammage available only in a given chain of stores), the image of a cheap or the cheapest market (which is not always reflected in price comparisons of product baskets), as well as store size and product portfolio that fit well with customers’ needs.
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In recent years, there has been a clear trend of “supermarketization” of discounters. They expand their offer of fresh and convenience products, develop the range of delicatessen products and premium private labels, and offer selected non-food products. New store formats are being launched, such as Netto 3.0 and Biedronka 3.0. Discount chains are also testing completely new store formats – in 2021 half of Biedronka’s openings are to be in the smaller format. Netto is testing the convenience format.
Biedronka a frequent choice for everyday shopping
An unquestionable advantage of discount stores is also their very high recognisability. Nine in ten Poles know Biedronka, and a slightly smaller percentage know Lidl. Recognition of Netto and Aldi is lower, at the level between 60% and 70%.
As many as 87% of Poles bought groceries at discount stores in the last three months preceding the PMR survey conducted in April 2021. Unsurprisingly, the most popular stores in which purchases were made were Biedronka (86%) and Lidl (61%). As many as 69% of Poles shop in Biedronka at least once a week, which is by far the highest percentage among all discount chains.
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