Market analyst Verdict Research forecasts that discounters are likely to make gains in the UK market this year, as trading conditions for multiple retailers toughen.

Senior analyst Daniel Lucht said: “One problem that the discounters have in the UK market is locations for new stores, but looking at the year ahead, it seems to be getting tougher for retail growth, with consumer spending depressed. When that happens, we see the discounters doing well, and I believe that will happen this year too.”

The shares of the discounters across the EU are lowest in the UK and Irish markets, and highest in Germany, Belgium and Austria. This indicates that there is potential for growth from low bases in the markets of the UK.

“The discounters have been around since at least the 1960s in Germany, but they are a lot smaller in the UK,” said Lucht. “They are growing, but it is going to take a lot longer.”

Lucht also expects to see greater uptake of organics by the discounters in the UK. “Aldi and Lidl have both really latched onto the organic trend, which is much stronger in Germany than in the UK, with more dedicated organic retailers,” he said. “I would have thought that we would see this in the UK too, in time. Lidl is already stocking Fairtrade products, for example, and the German discounters also purchase organic produce from UK growers for export.”

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