A new study has found that supermarket chains Aldi and Waitrose are the two fastest growing retailers in the UK, highlighting the increasingly polarised nature of the country’s grocery sector.
16 of the 20 companies featured in the list can be identified as either premium-end brands or value retailers, the research’s publisher claimed.
OC&C Strategy Consultants also found that food retailers Groupe Casino, Costco, Aldi Group and 7-Eleven were third through sixth respectively in a list of the fastest growing retailers in the West – a region covering the US, the UK, Germany, France, the Netherlands and the Nordic states.
Anita Balchandani, head of retail for OC&C Strategy Consultants, said: “We’ve seen the majority of growth in the retail sector come from its polar extremes in terms of price position. Although at first glance these retailers have little in common, what they all share is a trait to adapt the quickest to what matters most to customers, create strong propositions that are well-rated by customers, and good, transparent value, regardless of their price position.”
Aldi’s position at the top of the UK rankings was driven by average year-on-year revenue growth of £1.2bn, and the German retailer has opened 40 new stores in the UK each year. Last month, we reported that Tesco was cutting 25,000 products from its bloated portfolio as it continued to fight the increasing popularity of discount retailers. The companies featured in OC&C’s list achieved an average growth of 17% – far more than the 1% norm.
In the case of retailers such as John Lewis and Poundland, growth was measured across all food- and non-food related categories.
Balchandani added: “The fastest growing retailers in both the UK and across the biggest Western markets show that it is possible to grow against the odds in low-growth economies. They have grown by capitalising on and responding to key customer needs.”
© FoodBev Media Ltd 2020
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry.
Don’t miss out on having your innovations recognised on a global scale.
Deadline for entry 11 September – enter now!