Variety discounters grow faster than grocery market

Research from IGD also finds that variety discounters’ growth of 6.8% per year will be over four times the pace of the overall UK food and grocery market.

In January 2021, 66% of British shoppers claimed to have visited a variety discounter in the past four weeks to buy food and groceries and the number of shoppers using them has steadily increased since May 2020, following an initial drop in shoppers as a result of lockdown restrictions.

Nicola Ball, shopper insight manager at Shopper Vista, IGD, said: “Variety discounters are fast becoming a destination for food and grocery shopping. Over a quarter of shoppers were on a top-up mission on their last trip to a store.  In response, the channel is increasingly growing its food ranges to increase basket sizes and frequency of visits.

“Top-up grocery missions are most common in B&M and Home Bargains, as they stock a broader range of food and drink. And, of the largest four brands, Home Bargains currently offers the most choice with fresh, frozen, chilled, and ambient in each of its stores. Its range is close to enabling a full shop.”

The data shows families are most likely to shop in the channel – 40% of variety discount shoppers have children living at home – predominantly driven by the perception that it can help them to save money.

Lucy Ingram, retail analyst at Retail Analysis, IGD, added: “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 continued: “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.