Responding to Discount: A New Business Model for Food Retailers?

Europe, 2005

This report by the Europe Council and McKinsey & Company summarizes the results of an extensive study on the growth of European discount grocery retailers and the implications of this growth for non-discount supermarkets and hypermarkets. To develop this market research, the Europe Council and McKinsey & Company held discussions with leading experts and surveyed 10,000 European grocery shoppers.

The project’s prime objective was to highlight the trend towards value, which both underpins the remarkable growth of discount and offers avenues for non-discount retailers to fight back. It focuses on how discounters successfully serve certain groups of price-focused shoppers, and also highlights the limitations of the discount model. The report includes some of the many implications for manufacturers of consumer packaged goods, but the focus is to develop solutions for non-discount grocery retailers.

Read the report below to discover how to capture these shopper insights in action within your business.