discounters

Discounters are retailers that primarily sell goods at reduced prices relative to traditional supermarkets and department stores. They emphasize low prices, basic or no-frills service, and a streamlined shopping experience. The term is used for a range of formats, including hard-discount stores, dollar stores, factory outlets, and online discounters. While the exact model varies by region, the common thread is price leadership achieved through cost efficiency and limited product selection.

Business model: Discounters reduce operating costs through small store footprints, simple store layouts, limited or no services, high employee productivity, centralized distribution, and lean supply chains. They often rely on high private-label share and direct purchasing from manufacturers. Hard-discount stores typically offer a very limited assortment at the lowest possible prices, while soft-discount retailers maintain a broader assortment with some services. Online discounters use digital efficiency to reduce overhead and offer price cuts on a wide range of goods.

Impact and criticisms: The growth of discounters has intensified price competition and expanded access to affordable goods, especially in markets with high price sensitivity. Critics argue that ultra-low prices may come at the expense of product quality, brand diversity, worker conditions, and supplier margins. Some practitioners raise concerns about sustainability and waste, given packaging and turnover. The presence of discounters influences traditional retailers to rethink pricing, assortment, and efficiency.