1. Research Reports
April 21, 2017

Discounters: expanding UK retail park presence

Discount players such as B&M and Home Bargains have rapidly expanded in recent years.

By GlobalData Retail

Discount players such as B&M and Home Bargains have rapidly expanded in recent years, snapping up retail park formats as other traditional big box retailers have fallen out of the market or the likes of B&Q have chosen to reduce the number of large stores in their portfolio.

Often in secondary retail park locations, lower rents and large units have ensured that out of town shopping parks are an attractive choice for value players, which have an increasing product range to display as they expand more into homewares and DIY & gardening and need to drive maximum profit from low margin products.

Discounters share of UK retail parks market 2012- 2022eRetail

As well as multi-sector discounters, Aldi and Lidl have also increased their retail park presence, with landlords keen to bring in retailers with a wide appeal to drive footfall and anchor the development. The value grocers have driven growth in the food sector, and stolen share from Asda and Tesco, and we expect this to continue. Consumers’ shrinking budgets will maintain the discounters’ appeal over the next five years, as shoppers will rely on them for everyday essentials – fuelling further store openings as demands for accessibility rise.