The retail market in Bristol and the rest of the UK may have changed for good, according to new research from leading property advisers CBRE.
The firm has published its annual South West Market overview, which includes a detailed analysis of habits, trends and spending across sectors including household, leisure and the high street.
The findings highlight that in 2011 the discount sector accounted for £7bn of the UK retail market, with CBRE predicting the figure to rise to £11.4bn by 2017. This forecasted growth has been largely driven by the recent performance of discount supermarkets such as Lidl and Aldi, with the latter reporting a 65 per cent increase in profits over the last 12 months.
Chris Thomas, Senior Director – Retail at CBRE Bristol, commented: “Consumer markets remain fragile, particularly in the supermarket sector. But while the big four still largely dominate, we are seeing budget stores gradually grabbing more and more of the market share.
“Here in Bristol we have seen an increase in the number of discount stores in recent years and there are more openings planned for the near future. The discounters are not going to go away anytime soon and if anything there are more retailers trying to force their way into what is fast becoming a very crowded market place.”
The impact of discount supermarkets has clearly been taken seriously by Sainsbury’s, with the company recently forming a partnership with Dansk Supermarkd, the parent company of Danish discounter Netto. The move to re-launch Netto in the UK with 15 new stores is very much an attempt to take on the likes of Aldi and Lidl head on.
Chris Thomas added: “The recession changed people’s shopping habits and these have not shifted back even now that the economy has stabilised. The discount supermarkets have improved their offer and their marketing has got their message through to the consumers. Modern shopping is now largely about convenience and value for money.”
