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Discounter and value channels have boomed during the pandemic: How brands can maximise sales 

Discounter and value channels have successfully carved out a niche in the retail industry, growing exponentially during the COVID-19 pandemic, suggests new research from IGD. As some shops have seen declining sales and store closures, discounter shops that were identified as ‘essential’ during lockdown have been thriving. Keep reading to find out why 2020 was a success story for discounter channels and how brands can maximise sales by targeting money-savvy shoppers. 

IGD’s research predicted that discounter stores will be worth a staggering £12.6billion by 2022, up from £11.1billion in 2020. Home Bargains, B&M, Poundland and Wilko were some of the discounters found to have profited during the pandemic, as well as some other smaller players.  

In January 202166% of British shoppers said they had visited a variety discounter in the last four weeks to buy food and groceries, and the number of shoppers at discounter stores has steadily increased since. This indicates that shoppers want value for money and are making extra trips to get bargains on groceries and home improvement or lifestyle products. Why have sales soared in discounter and value channels during lockdown? 

Analysing shopping behaviours and trends presents a number of reasons for the growth of discounter stores: 

Good value for money 

According to IGD, families are the largest audience, as discounter channels are appealing for people looking to save money or find bargains.  

With a forecast of financial downpour set to prevail even after restrictions ease, the discounter mindset will likely continue as Brits opt for cost-effective shopping methods. 

Home improvementsgardening and DIY projects 

Being stuck at home during lockdown has encouraged the public to revamp or repair their homes. In the third lockdown, discounter stores such as The Range and B&M were deemed essential, as they sold groceries, building supplies and pet food. With extra time on their hands, shoppers jumped at the opportunity to browse home improvement items and repaint that room they’ve been meaning to get round to. 

Experimentation in the kitchen 

Not being able to dine out for a meal, Brits have been keen to broaden their culinary repertoire. Households across the UK are having 136 million more meals at home each week and one third of households have added a dish to their weekly evening meal routines, than they were prior to the pandemic, according to Premier Food’s recently published Kitchen Cooking IndexDiscount stores like B&M offer a wide variety of goods, giving shoppers the opportunity to browse new foods or brands or try a new recipe. 

Nostalgic products  

You can pick up your favourite old-school sweets and treats from discounter stores, from Fish n’ Chips crisps to retro chocolate bars. Turning to home comforts and nostalgic foods has been a stabilising force for people during the uncertainty of the pandemic. B&M recently sold discontinued Cadbury bars and a Facebook post sharing the news received more than 4,000 comments and likes, with shoppers desperate to get their hands on one. 

The discounter channel is growing at a rate of 6.8% per year, which will be over four times the pace of the overall UK food and grocery market, says IDG. So, when is a better time for your brand to capitalise on the discounter trend? 

When you have the right field marketing team by your side, your brand can tackle issues and optimise opportunities instore to avoid lost sales. In no time, you’ll start to see your products fly off the shelves and beat the competition while ensuring your ROI is high.   

How can Logobrand help your brand maximise sales in discount stores? 

Unlike other field marketing agencies, we know that every client is different, which is why we shape our solutions to fit each brand’s requirements. Our proactive account management team will become an extension of your business, offering support strategies to deliver maximum impact, return-on-investment and end-goal excellence. 

We offer help with:   
  • Identifying stores that really need your support and pinpointing products that are experiencing availability issues, out of stocks and therefore lost sales     
  • Fixing those on-shelf availability gaps by deploying an agile field representative into your store to tackle those retailer compliance or stock replenishment issues    
  • Merchandising stock on shelf and ensuring stock inventory is maximised to allow regular replenishment  
  • Regaining share of shelf. We’ll ensure the correct number of facings are present to keep your customers engaged and the shelves fully stocked  
  • Ensuring SELs are present and correct. If the price isn’t visible, your product won’t be picked  
  • Increasing visibility. With additional sites and visual merchandising, your product sales will soar – there are lots of opportunities in the discounters to create numerous points of interruption throughout the whole store 

At Logobrand, our dedicated team of field marketing experts will help evaluate your current trading position in store and design a tailor-made support package to exploit opportunities and maximise sales of your brands in-store, while delivering a positive return on your investment. We’re really proud of the clients we’ve worked with, including some of Britain’s best-loved brands. We don’t like to toot our own horn, but our recent wins of six different awards at the FMBE awards, including GOLD in Field Marketing Agency of the Year, speak for themselves…  

If you’d like to find out how to maximise sales in–store, get in touch with a member of our friendly team today.   


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