discount

4 Stocks to Tap Rising Demand in Retail Discount Stores Space

The COVID-19 outbreak has brought about a major shift in consumers’ buying behavior and spending pattern. With the pandemic taking a toll on employment and household income, consumers are left with no option but to curtail spending. Definitely, measures undertaken to support households and the resumption of economic activities provided some relief but consumers’ hunt for better bargains continue.

Under the current circumstances, people have been showing a preference for discount stores for essentials and other household needs. A differentiated product range resonates well with customers’ spending habits. No wonder, the strategy to sell products at discounted prices has helped industry players expand customer base amid the pandemic.

That said, industry participants have been focusing on deepening engagements with consumers, expanding merchandise assortments, and enhancing digital and data analytics capabilities. They have been making strategic investments to provide consumers fast, convenient and safe shopping experience, be it offline or online.

Keeping in mind consumers’ product preferences and growing inclination toward online shopping, thanks to social distancing and greater stay at-home trends, discount players have been replenishing shelves with in-demand merchandise, and expanding delivery options — curbside pickup or ship-to-home orders — and contactless payment solutions. The companies have also been investing in renovation, improved checkouts and mobile point-of-sale capabilities to keep stores relevant.

It comes as no surprise that discount retailers have succeeded in creating a niche in the retail space. Here we have highlighted four discount retailers that have been gaining from coronavirus-led spike in demand.

4 Prominent Players

Target Corporation TGT: This general merchandise retailer has been making investments to enhance omni-channel capacities, come up with new brands, and remodel or refurbish stores to cater to consumer demand and behavior in the new normal. Markedly, this Zacks Rank #1 (Strong Buy) company witnessed sturdy market-share gains in all

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It’s boom time for discount stores in the land of luxury

In a country known for its love of the lavish and luxurious, discount stores are making a surprising impact on the UAE’s retail sector, with a spike in consumer spending during the past few months.

As the region has been rocked by salary cuts and job losses as a result of the coronavirus pandemic, insights from credit card company Visa reveal that, in non-food categories, discount stores, home improvement stores and pharmacies are the three categories with the largest growth in sales since lockdown measures were introduced.

At the same time, higher ticket value categories, such as apparel, accessories, electronics and department stores, saw double-digit drops in spending, according to Visa’s data.

This change in consumer spending habits can be partially attributed to the economic slowdown brought on by Covid-19, the company said, adding that the trends have been echoed in Saudi Arabia and Pakistan.

“We are seeing that the health crisis, income pressure, and more time at home is driving up pharmacies, discount stores and home improvement,” said Akshay Chopra, vice president of innovation and design for Central and Eastern Europe, Middle East and Africa at Visa.

Chopra was speaking at the Future Retail Experiences media virtual webinar when Visa shared its data to support the retail sector in navigating the “new normal” where both the online and brick and mortar retail channels need to be seamlessly integrated.

Brands for Less co-founder Yasser Beydoun recently revealed that the company’s online business increased by 50 percent during the coronavirus crisis.

Increased spending on home improvement is also unusual in the Arab region, where ease of access to cheap handymen and repair people tends to make consumers snub retail outlets.

“Home improvement is very interesting because people are now spending so much more time at home that they are finally getting

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B&M discount chain to open up to 45 stores

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Discount chain B&M has said it will open up to 45 new stores this year after sales soared during the coronavirus lockdown.

It said its business model was “well-attuned” to customer needs, with discount goods being sold at out-of-town stores.

Retailers have had mixed fortunes during the coronavirus pandemic.

In August, retail sales were boosted by increased spending on DIY, but clothing sales still lagged.

Supermarkets and DIY stores are among the retailers that have seen high demand during the pandemic as people stocked up on food and home improvement goods during and after lockdown.

Last week, Tesco and Morrisons again put limits on the number of some items that shoppers could buy to try to prevent a repeat of panic-buying which led to shortages in March.

Rising to the challenge

B&M, which sells goods including DIY and foodstuffs, said its staff had done well to keep up with demand during the half year.

It initially closed 60 stores in shopping centres during the pandemic, but reopened them quite quickly.

A spokesman for the group said that a lot of people were looking for ways of keeping spending down during the lockdown, which attracted new customers.

Those customers have kept coming back.

Group sales jumped by 25.3% between 29 March and 26 September, and the retailer raised its earnings forecast for the period to about £285m from its previous estimate of £250m to £270m.

“Our people have risen to the many challenges posed by the Covid-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned,” said Simon Arora, B&M chief executive.

“I thank them all for their commitment, hard work and

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