PROSPECTS AND OPPORTUNITIES
Discounters will continue receiving support from price sensitive shoppers
Discounters is expected to see further strong value growth in South Africa over the forecast period. South Africa’s income divide is expected to persist during the forecast period due to the major challenges that will need to be overcome to balance the country's social dynamics.
Competition likely to intensify as market expands
Competition is likely to intensify within the discount format, with Shoprite and Pick ‘n’ Pay unveiling ambitious expansion plans for the forecast period. In that optic, Shoprite aims to double its Usave stores within five years, to reach up to 1,000 outlets by 2029.
Technology will gradually make its way to discounters
Despite digitalised services gaining traction in South Africa since the COVID-19 crisis, operators of discounters remain reluctant to embrace online services, due to various factors such as the limited disposable incomes of the target audience (making internet data prices expensive for most households) and the relatively low margins of the channel due its emphasis on offering consumers competitive pricing. Although the channel is not anticipated to fully embrace digitalised services over the forecast period, the combined effects of the influx of affordable smartphones and lowering social media bundle prices will likely encourage operators to expand promotional campaigns to popular social media platforms such as WhatsApp.
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Overview:
Understand the latest market trends and future growth opportunities for the Discounters industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Discounters industry in South Africa, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Discounters in South Africa report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Discounters in South Africa?
- Which are the leading retailers in Discounters in South Africa?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How has the impact of COVID-19 and national lockdown impacted consumer demand?
- Which formats have benefited the most from stockpiling and enforced home seclusion?
- How will the wider economic impact of COVID-19 shape the retail landscape in the future?
- Where is future growth expected to be most dynamic?
Discounters in South Africa - Category analysis
KEY DATA FINDINGS
Discounters benefits from rising footprint from grant recipients
Pick ‘n’ Pay bets on Boxer’s IPO to boost operations
Usave expands in rural areas as competition intensifies
Discounters will continue receiving support from price sensitive shoppers
Competition likely to intensify as market expands
Technology will gradually make its way to discounters
Retail in South Africa - Industry Overview
Retail in 2024: The big picture
Competition intensifies, leading to a more consolidated market
SARS introduces new regulation for cross-border e-commerce
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Christmas
Back to School
DISCLAIMER
Discounters
Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Discounters research and analysis database.
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