Discounters in South Korea is expected to see solid current value growth throughout the forecast period, with outlet numbers also expected to return to growth as consumers look for the cheapest option for purchasing groceries due to concerns about their budget in a difficult economic climate. However, the channel will remain small within overall grocery retailers, still accounting for less than 1% of overall value sales of grocery retailers at the end of the forecast period in 2029.
Preventing stronger growth for discounters is likely to be rising competition from another value for money channel, warehouse clubs. As consumer spending contracts due to the economic downturn, warehouse clubs is set to expand its influence in the retail market.
E-Mart recently opened new in-store shop-in-shop locations dedicated exclusively to selling No Brand products. However, as prolonged high inflation and the rise in single-person households have led to its improved performance, the retailer is now planning to expand stand-alone No Brand stores to strengthen its competitiveness, thus driving growth in outlet numbers.
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Understand the latest market trends and future growth opportunities for the Discounters industry in South Korea with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Discounters industry in South Korea, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.
See all of our definitionsThis report originates from Passport, our Discounters research and analysis database.
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