The discount sector is set to claim half of the German grocery market, as discounters expand from food into other sectors, according to retail analysts Verdict Research.
Go deeper with GlobalData
Verdict forecast that by 2012 one in every two Euros in German grocery retailing will be taken by the discounters.
Of Germany’s EUR131bn grocery market, the main discounters – Aldi, Lidl, Netto, Norma, Penny and Plus – now hold a combined share of 42%, Verdict said.
Daniel Lucht, senior analyst at Verdict Research and author of the report, said the “price conscious nature” of German consumers is present in “every sector of the German retail universe”.
Meanwhile, the 2007 increase in VAT and the discounter boom is “severely impacting” on Germany’s retail market, Verdict said.
Verdict said that for the first time since 2002 the retail market had contracted, posting a decline of 0.9% to EUR354bn (US$545bn).
“The overall retail market in Germany has receded back to what it was in 2005, meaning expenditure has been similar to that seen at the tail end of the last recession in the country,” Verdict said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
