FDBusiness.com

The Price is Right For 77% of Brits Earning £50,000+ Who Shop at Food Discounters

 Breaking News
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...
  • PepsiCo Reveals the 10 Finalists Joining its 2018 Nutrition Greenhouse Programme PepsiCo has announced the 10 entrepreneurs that will form the second class of its health and wellness incubator in Europe. First launched in 2017 to support the next generation of food and beverage entrepreneurs, the PepsiCo Nutrition Greenhouse programme offers each of the 10 participating companies a €20,000 grant, and access to PepsiCo mentors and experts to take [...]...
  • PureCircle Increases Capacity to Supply Reb M PureCircle, the world’s leading producer and innovator of stevia sweeteners, has announced that its recent advances in expanding capacity now enable it to supply significantly more Reb M to global beverage and food companies. Using beverage sweetening as an equivalized example, PureCircle can now supply enough Reb M to sweeten about 500 million cases of zero-calorie [...]...
  • Introducing the Propack Synchronized Staging Transfer Model PSST/120 Propack has announced a new, economical, safe product delivery system that uses stepper servo technology to receive randomly presented products from baggers, pouchers and flow wrappers to synchronise product delivery to high-speed cartoning machines. With a maximum packing rate of 120 packs per minute (PPM) to 80 twin PPM (depending on product size), the PSST/120 [...]...
  • Bel to Produce Mini Babybel at its First Canadian Factory Bel Group, a world leader in branded cheese and a major player in the healthy snack market, plans to build its first Canadian plant in Sorel-Tracy, Quebec. The facility, which is scheduled to begin commercial production in early 2020, will be fully dedicated to producing Mini Babybel® cheese. These dairy snacks encased in small and [...]...

The Price is Right For 77% of Brits Earning £50,000+ Who Shop at Food Discounters

The Price is Right For 77% of Brits Earning £50,000+ Who Shop at Food Discounters
October 23
11:13 2017

Latest research from Mintel finds better off British shoppers are flocking to UK food discounters. Indeed, today, as many as 77% of British consumers with a household income of £50,000 or more visit food discounters, compared to 73% of those with a household income of £15,500 or less.

And it appears that premium products are pulling in the punters. A savvy 66% of discount shoppers say that food discounters’ premium ranges are just as good as elsewhere, with only 7% disagreeing with this statement. Moreover, even when entertaining, well-off Brits are not afraid to stock up with the discounters. Almost half (47%) of food discount shoppers with a household income over £50,000 have bought party items from these stores in the past three months*, up from an average of 36% of shoppers.

Mintel research confirms that Brits are well and truly hooked on food and non-food discounters as a discount loving nine in 10 (89%) consumers shop at discount retailers, with 84% visiting non-food discounters and 74% visiting food discounters. Brits’ love of discounters peaks among young consumers; 93% of 16-24s have visited either a food or non-food discounter in the last three months. In contrast to usage of food discounters, non-food usage peaks amongst those with a household income of between £25,000 and £49,999 (84%), compared to those with a household income of £50,000 or over (79%).

Nick Carroll, Senior Research Analyst at Mintel, comments: “High income households are just as likely to shop at food discounters as lower income ones. The post-recession success of leading discount food retailers has been built on a softening of their hard discount roots and bringing in ranges which appeal to a wider variety of consumers. A part of this success has been the introduction of more premium ranges, something that is clearly going over well with shoppers.”

This year total discount sales are set to reach £26.7 billion, with food discounters accounting for the bulk of sales (£17.2 billion) and non-food making up the remaining £9.5 billion. What is more, Mintel forecasts that total sales are set to experience further growth of 57% through 2022 to reach £41,827 million, accounting for 11.4% of all retail sales.

Within the sector, food discounters grew by an estimated 13% in 2016 to reach £15.2 billion; further growth of 13.5% is estimated for 2017 when the market will reach £17.2 billion. Meanwhile, non-food discounters grew by an estimated 8% in 2016 to reach £8.7 billion, further growth of 9% is estimated for 2017 when the market will reach £9.5 billion.

“Over the past 10 years the discount sector, both food and non-food, has shown that it is highly adaptable, succeeding to thrive in both market conditions which favoured a low-cost alternative and in conditions where traditionally there would have been less demand. With an uncertain economic outlook in the short term, the sector is well placed to make further gains and capitalise on likely consumer desire to cut back on expenditure,” Nick Carroll adds.

Finally, Mintel research finds overall satisfaction is high among both food and non-food discount shoppers, as 40% say they are very satisfied with the overall experience and an additional 52% say they are satisfied.

While shoppers are most satisfied with prices, with 93% satisfied and 52% very satisfied with this, a big positive for the sector is satisfaction with the quality of products. Today, an impressive 71% of all discount shoppers think that the quality of products available in such stores is as good as elsewhere, rising to 75% of those who shop most often at food discounters.

And it seems that Brits are as keen as ever to bag a bargain as 72% of discount shoppers say that the prospect of “finding a bargain” keeps them coming back for more. Meanwhile, a further 73% of discount shoppers say that new product ranges keep the experience interesting.

However, there is a sense that an increase in healthier options presents retailers with further opportunities, with 45% of discount shoppers agreeing that the food discounters should offer a wider range of healthy options in-store.

“There is widespread agreement that new product ranges keep the shopping experience interesting and there is also a sense that they create a sense of a treasure hunt within stores, with the majority of shoppers agreeing that this prospect of finding a bargain keeps them coming back. While many of the food discounters are actively promoting healthy eating, our research indicates this could go further. Given how important higher socio-economic consumers are to food discounters, and their attitudes towards healthy eating, it is clear this should be an area of focus for the discounters. With a price premium placed on products under the ‘healthy eating’ heading, a lower-cost but still high-quality alternative from the discounters is likely to prove popular,” Nick Carroll concludes.

* in the three months to July 2017.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements