First-time discount shoppers boost sales
NEARLY £5billion was spent at Britain’s bargain stores over the past year after 2.2 million households shopped at a discounter for the first time.
The extent to which shopping habits have changed since the credit crunch and the rapid expansion of discount chains, like Poundland, Poundworld, B&M and Home Bargains, were highlighted in the latest data from market researcher Nielsen. It showed a 17 per cent rise in spending from the previous year to £4.9billion.
About 78 per cent of households now shop at bargain stores, not just for household non-perishable goods but increasingly for fruit and vegetables. Nearly one third of the increased annual amount spent at bargain stores came from shoppers switching away from supermarkets and health and beauty retailers.
The big four supermarkets were most affected by the switching, according to Nielsen, accounting for 73 per cent of the spending shift.
Nielsen’s UK head of retailer and business insight Mike Watkins said: “The rising spend at bargain stores is driven by two things. The huge rise in first-time visitors and, more importantly from a long-term perspective, shoppers buying a larger repertoire of products from bargain stores, some of which they previously bought from mainstream retailers.”
Watkins said discounters were benefiting from moving beyond the £1 price tag, nearly one in four items cost more, which “resonates well with shoppers because removing the £1 ‘straitjacket’ allows stores to offer good value across a much wider range of products, which makes for bigger baskets and more expensive trips”. He added: “Historically, shoppers visited them for household goods and general merchandise, the type of ‘safe’ nonperishable categories new shoppers initially limit their repertoire to.
“People are starting to visit for their regular grocery staples and more experienced bargain store shoppers are becoming interested in adding fresh produce to their repertoire.”