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© HalfPrice
The Discounters‘ Hour
comparison with earlier contracts. The increasing diversity of discount concepts is a positive trend for owners because it creates a demand for different sized space and location quality in this market segment.
Economic weakness and phases of rapidly rising inflation traditionally lead to an increase in market shares for discounters. The combination of these two factors in 2022 has, therefore, created a favourable environment for both food and non-food discounters to expand their branch networks. Retail parks are the major beneficiaries in rural areas, while locations previously reserved for the mid-price segment have become the focal point in cities. This is true for shop- ping streets as well as shopping centres. Particularly noticeable is the strong growth in retail parks, where the number of discounters has increa- sed steadily since the beginning of the corona crisis. Food discounters, above all Hofer and Lidl, and non- food chains like Action or TEDi are now the largest tenants based on rented space. The discounters‘ strong focus on expansion and high space productivity have also been reflected in a readiness to accept rents for prime locations that were previously directed to tenants in the hig- her price segments. However, the current market situation frequently requires price reductions in
The direct road to success
The concepts developed by non-food discounters may be very different in detail, but they have one thing in common: The road to success taken by Action, KiK, NKD, TEDi and their fellow market players reflects a strict orientation on the best possible price and the best possible value for money. There are no costly add-on services, for example online, and, more than any other retail concept, full concentration on offline retailing. Not least because of this focus, discounters are currently following an aggressive growth course and intensively looking for vacant space at attractive locations – in contrast to the branch rationalisation that currently characterises the activities of very large chains.
Discounters - number of branches
350 300 250 200 150 100 50 0
Action
NKD
TEDi
2017
2018
2019
2020
2021
2022 (p)
Source: Action, NKD, TEDi
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