European Grocery Retailers: Easing Threats from Discounters

In the face of cost-of-living difficulties, European consumers have continued to seek out the best value for their money, exhibiting a renewed preference for hard discounters. Riding on the trend, discounters have recently gained market shares at the expense of general grocery players. This was especially prominent in the U.K. from early 2022 to mid-2023, where market shares of Aldi and Lidl cumulatively expanded by around 400 basis points to 18%.