Strong growth forecast for UK discount market with gardening set for 46% leap

The UK discount retail market is forecast to grow by more than 36% over the next five years, reaching a total value of £32.5bn by 2022, driven by consumers seeking out bargains as inflation squeezes their disposable income.

According to a report from GlobalData – titled ‘UK Discounters 2017-2022’ – discount retailers could gain an extra £9bn slice of the total retail market as such stores become an even more appealing destination for cash-strapped shoppers.

Aldi, Lidl and B&M Bargains dominate the channel, with a combined share of over 70% of the discount retail market. DIY & gardening, health & beauty and homewares are expected to deliver the strongest category growth. B&M now has 118 garden centres in stores.

GlobalData’s research shows that 89.4% of the UK population have shopped at a discounter in the last 12 months.

Molly Johnson-Jones, food & grocery (F&G) analyst said: "Our report findings confirm that discounters have done an exceptional job in gaining market share of frequently purchased items by changing the perception of discounter own label products in F&G while at the same time undercutting mainstream retailers on branded items in H&B and household. This combined approach has proven to be very disruptive in the market and has contributed to their success.’’

Food & grocery is the sector with the highest market value, worth £15.7bn in 2017. GlobalData expects this to grow to £21.8bn by 2022.

DIY & gardening and homewares are forecast to grow 46.6% and 42.6% respectively for the period 2017-2022, as discount retailers gain market share from mainstream DIY retailers by offering consumers lower cost solutions for household maintenance and upgrades. Indeed the roll-out of larger out-of-town store formats has facilitated broader ranges, providing them with more authority in the home sectors.

Johnson-Jones added: "The discounters have expanded their range in the DIY & gardening market at a time when consumers are seeking reduced cost solutions for doing up their homes and gardens – B&M will particularly outperform in this area as it adds garden centres to its retail estate over the next few years."


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

What new vegetables will gardeners be growing in 2018?

What new vegetables will gardeners be growing in 2018?

Next year is Fleuroselect year of the chilli pepper and Thompson & Morgan and Mr Fothergill's have ranges around the hot vegetable, with a new way of promoting sales.

Garden centre building: what's going up?

Garden centre building: what's going up?

After a lull in new builds, 2018 could see a slight resurgence in garden centres being erected.

Retail seed: crowded market for 2018

Retail seed: crowded market for 2018

Thompson & Morgan is refocusing on the garden centre seed market, hoping to win back business from Mr Fothergill's, which has expanded during T&M's long sale process.


Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Horticulture Week Top 100 GARDEN CENTRES

Our exclusive ranking of garden centre performance by annual turnover. 

Garden Centre Prices

Peter Seabrook

Inspiration and insight from travels around the horticultural world
 

Read more Peter Seabrook articles

Neville Stein

Business advice from Neville Stein, MD of business consultancy Ovation
 

Read latest articles