Discount supermarkets in Europe

Here's an interesting article from The Economist about food retailing in Europe.

Seems like in Germany, and western Europe, discount supermarkets are becoming more and more popular. Here's how they work - Discounters stock a fraction of the goods that a normal supermarket offers, resulting in fewer suppliers, a high volume of purchases and sales, and massive economies of scale. You would find 16 brands of tomato ketchup in a normal big supermarket, for example, but only 1 brand at the discount supermarket. This results in generally 30-50% lower prices for groceries.

Interestingly, these discounters appeal not only to the lower income group but also the middle class consumers. This is because, due to economic concerns, many people simply make the most rational decision, i.e. to buy where it is cheapest. It's no surprise therefore, that discount supermarkets are gaining market share (up to 30%) across western Europe.

I wonder if this concept will gain traction in this part of the world. There's no reason for it not to because consumers here face the same economic reality. Anyway, it's good to know there is a massive price-war among retailers as it means better bargains for consumers. Of course, we also hope to achieve the same effect through the PriceChat community.

Happy sharing!