Discount Retailers Dominate as Big Four Slow Down

  • Aldi and Lidl submitted a combined total of 128 planning applications for new stores in the UK in 2018
  • Mainly smaller convenience stores to cater to changing consumer habits
  • The ‘big four’ supermarkets submitted only 20 planning applications in 2018
  • Property cost issues and excess floor space in larger stores have led to scaling back of store development plans

Aldi and Lidl have continued to dominate the supermarket space race, submitting a combined total of 128 planning applications for new stores across the UK in 2018. The proposals are mainly for smaller convenience stores designed to cater to changing consumer habits, with more frequent, smaller shopping trips. In contrast, the ‘big four’ supermarkets – Tesco, Sainsbury’s, Asda, and Morrisons – submitted only 20 planning applications in the same year. Property cost issues and an excess of floor space in larger stores have led to a scaling back of store development plans. Michael Dall, lead economist at construction intelligence provider Barbour ABI, commented: ‘The discount retailers continue to dominate the supermarket space race even if they’re not as active as 2015, which saw them commit to rapid expansion. Their appetite for investment matches their highly ambitious growth plans as they continue to challenge the established order in the supermarket sector.’

Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Aldi and Lidl’s planning applications for new stores across the UK, their focus on smaller convenience stores, and a comparison with the ‘big four’ supermarkets. It also includes a quote from an expert in the field to support the claims made.
Noise Level: 3
Noise Justification: The article provides relevant information about the growth of Aldi and Lidl and their strategy to open more stores in the UK, but it lacks a deeper analysis or exploration of the reasons behind this trend and its potential consequences. It also does not offer actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and grocery sectors
Financial Rating Justification: The article discusses the expansion plans of Aldi and Lidl, which are major players in the UK grocery market, and their impact on the ‘big four’ supermarkets (Tescos, Sainsburys, Asda, and Morrisons. This directly affects financial markets related to retail and grocery sectors as it influences competition and growth strategies of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

Reported publicly: www.retailsector.co.uk