U.K. Shoppers Spent Nearly £5 Billion Bargain Hunting

Britons have embraced “pound” stores, which now offer fresh vegetables and fruit.

September 07, 2016

LONDON – 99p Stores, B&M and Poundland have had a resurgence of interest from British shoppers lately, with more than 2.2 million households buying goods from discount stores for the first time over the past year, The Guardian reports. Four in five shoppers say they visit bargain locations to purchase a growing number of goods, including fresh fruit and vegetables.

Nielsen found that bargain store spending reached £4.9 billion in the year ending July 31, a 17% bump from the previous 12 months. These “dollar” stores have become more popular than bargain supermarket chains Aldi and Lidl. Close to a third of the increased yearly amount generated at pound stores come from consumers ditching mainstream grocers and health & beauty shops.

“The rising spend at bargain stores is driven by two things,” said Mike Watkins, Nielsen’s U.K. head of retail and business insight. “The huge rise in first-time visitors and, more importantly from a long-term perspective, shoppers buying a larger repertoire of products from bargain stores—some of which they previously bought from mainstream retailers.”

Growth in sales at these discount retailers are not being driven by the £1 price, given that nearly one in four products cost more than a pound. Watkins said this “resonates well with shoppers because removing the £1 ‘straitjacket’ allows stores to offer good value across a much wider range of products, which makes for bigger baskets and more expensive trips.”

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