Discount stores, opportunity or threat for Italian food?

More and more discounters tap into premium private labels. Only recently, Spanish discounter Dia introduced a top range called Delicious. Almost at the same time, Jerónimo Martins-owned Biedronka launched a new line called La Speciale...
Discount stores, opportunity or threat for Italian food?

In 2014, Planet Retail spotted some private label trends as a result of socio-demographic changes, the financial crisis’ effect on consumer habits and the globalisation of retail.
Discount stores have emerged as one of the strongest growing formats worldwide. Lidl-parent Schwarz Group, for instance, is already the biggest retailer in Europe in terms of sales. The discounters we today identify as winners do not have so much in common with the original, no-frills outlets. They are increasingly approaching a softer concept with features inspired by supermarkets or convenience stores.
The fact that even the hardest discount stores have become more attractive in terms of design and style made it acceptable for an increasing number of customers to even shop there for luxury items. The value chains have turned into stores targeting main stream shoppers and this customer group still wants to treat themselves sometimes.
Hence, it can be seen as part of a natural evolution that more and more discounters tap into premium private labels. Only recently, Spanish discounter Dia introduced a premium range called Delicious. Almost at the same time, Jerónimo Martins-owned Biedronka launched a new line called La Speciale probably in an attempt to attract the increasing wealthier segment of the Polish population.
Netto, Dansk Supermarked’s discount banner and Denmark’s leading grocery chain, has begun trialling its new Premieur premium private label. Penny brought a range called Selection to its foreign markets, including the Czech Republic, Hungary, Romania and Bulgaria, as well as Austria and Italy. Lidl that is continuously rolling out its Deluxe line has started selling it online in Spain and to provide an option to pre-order meat products for the festive season in Belgium. We even saw a line that was delisted in 2013 being reintroduced. Primess is back at Migros discounter Denner – this time with a distinct focus on product provenance.

By Denise Klug, Planet Retail

The Premieur range of Dansk Supermarked’s Netto is now also available at its first recently opened store in the UK (Photos: Copyright Planet Retail)

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Carrefour’s French private label Reflets de France at Carrefour Easy in Shanghai, China

 

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