According to OC&C Strategy Consultants, value and premium brands are growing fast in the UK. Among some of the fastest-growing retailers in Britain are Aldi, Waitrose and Primark, alongside some premium-end businesses including Burberry and Harrods.
Sales at Waitrose rose 6.5% to £6.51 billion in 53 weeks to January 31 with 1.4% jump in like-for-likes, while online grocer Ocado was the only other food retailer to make it into the top 20 of the OC&C study. Again German discounter Aldi has seen revenues soar by an average of £1.2bn a year since 2011 after opening around 40 new stores in the UK every year.
“We’ve seen majority of growth in the retail sector come from its polar extremes in terms of price position. Although at first glance these retailers have little in common, what they all share is a trait to adapt the quickest to what matters most to customers, creating strong propositions that are well-rated, coupled with good, transparent value, regardless of their price position,” says Anita Balchandani, OC&C head of retail.
“Retailers are succeeding by giving customers the ability to shop on their own terms, reducing all points of friction in the shopping journey. We’re seeing a range of key customer trends – be they the growing importance of convenience, value, luxury and healthy and active lifestyles. Those retailers which grow will find that they do so by exposing their businesses to these tailwinds.”