The outlook for discounters in the United Arab Emirates is optimistic, as the channel’s value-centric approach and capability to meet the requirements of budget-conscious consumers are anticipated to present a substantial challenge to prominent supermarkets and FMCG manufacturers. The rise of discounters in the United Arab Emirates is noteworthy and the channel’s success may attract the interest of foreign discount chains looking to enter the local market.
During 2024, consumers in the United Arab Emirates are expected to remain mindful of their expenditure without compromising value and their demands. Value hacking will emerge as a new financial mindset where consumers search for the best deals, extending beyond the price tag – this would mean smart approaches to maximise budgets without sacrificing quality and what they really want.
Consumers in the United Arab Emirates generally favour notable brand names and generally are less likely to choose private label. However, there was a notable shift in attitudes towards the end of the review period.
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Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.
See All of Our DefinitionsThis report originates from Passport, our Discounters research and analysis database.
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