1. General information about discounters
2. How discounters work
Discounter — This a store with a narrow assortment and a minimum range of services for customers, with fairly low prices. The management of such a store is aimed at reducing costs due to the minimalist design of the sales floor, simplified display of goods, reducing the number of working personnel, limiting the assortment, which should be sold by large enough political parties due to low prices.
Discounter - This"Shops of low prices» is a chain of retail stores with a narrow assortment but low prices (compared to stores of other formats in the region).
General information about discounters
The main audience of discounters are buyers with average and lower incomes. In classic discounters, prices are on average 15-20% lower than in supermarkets.
There are two main types of discounters: hard and soft. hard - less than 1 thousand items, most of which do not require refrigeration, soft - up to 4 thousand. Sales area - up to 800 sq. m (soft - up to 1.5 thousand sq. m). According to market participants, in 2006 discounters accounted for about 7% of Ukrainian market food retail, estimated at $12-14 billion. The Dnepropetrovsk ATB Market, Lviv Intermarket (Barvinok chain), Retail Group (Prosto Market) and Lutsk Agrocontract operate in the soft discounter format in Ukraine. .
If there is a sufficiently large network of such stores, constant movement is practiced political parties product from one store to another, where there is more at a given product. In this way, savings on storage space are achieved.
The first discount stores appeared in the Republic of Germany in the mid-1950s in conditions of relative economic stability and minimal inflation. In a short time they gained wide popularity in Western Europe and the USA. Today, stores of this format - for example, Aldi, Lidl, Wal-Mart, Biedronka - confidently occupy leading positions in the market retail. In 2001, the ATB-Market chain joined the family of discounters.
IN period Due to the economic collapse, discounters have become increasingly popular. Traffic and product turnover this year period grows significantly - by 20-40%
Low prices are achieved by reducing expenses: minimal design of the sales area, a small number of staff, simplified display product. The main principle of profitability of the discounter network is the high turnover of all goods in the assortment of the retail chain. There are two types of discounters: hard (no more than 1000 items in the assortment, store area is 500-800 sq.m.) and soft.( range 1500-3000 items, area up to 1.5 thousand square meters. m).
How discounters work
Discounters are stores with a fairly large area (from 700 to 1200 square meters), as a rule, without a perishable group and practically without branded goods. There are so-called hard and soft discounters. Hard ones are characterized by the ratio “1 assortment item per 1 square meter of retail space.” That is, in a store 800 meters away there will be only 800 items! Is it possible to imagine this here, where, it seems, even in a shopping pavilion there will be almost the same amount?
Soft discounter for the same area will provide a little more choice - 1.5-2 assortment items per square meter.
What other features of this format are there? The fact is that the principle of saving on costs is implemented in everything costs. This is centralization and maximum automation of all logistics, purchasing, and analytical processes - they take place in central offices, the store does not deal with this. Because of this, a discounter’s staff a few years ago could consist of 4-6 people for the entire store of 700 meters! These people do everything - they accept the product, and lay it out, and sit at the checkout, work as loaders, and merchandisers, and merchandise experts... This gives enormous savings on costs, and, unfortunately, is completely impossible to implement in our country.
Savings occur on everything: on light (no special lighting, only general building lighting), on equipment (it is cheap, partially made on its own), minimal or no design, except for external design. Cleanliness may be poor, but cost savings never is.
Savings on inventories and maintaining the assortment occur due to its strict limitation. The display is often done directly in the packages, and there are pictures explaining that you cannot take one bottle, you can only take a package of four. There are practically no warehouses as such; all the product is on the sales floor. Automation and barcoding began to be used relatively recently; before this time, they also saved on this.
Despite the strict limitation of the assortment, discounter chains seriously monitor the consumer consumption structure and boast without undue modesty that you can buy 80% of the products of daily consumption at a discounter. There will simply be little choice: one type of paper napkins, 5 flavors of juice, one type of canned peas, etc.
At the same time, it is precisely thanks to their clear positioning that discounters are not afraid of competition from department stores, supermarkets and convenience stores: they are simply not competitors on price - at a discounter it can be 2 times cheaper. Quite the contrary: discount store managers are happy to put them right in front of a good store. Then he goes to both: in one he buys daily groceries, in the other he buys himself gourmet cheese, a bottle of good wine or nice colored notebooks. It is not known what supermarkets think about such a neighborhood, but discounters feel great in this location.
It is widely believed that low-income people, students, etc. shop at discount stores. This is not entirely true. Of course, it is there that the mentioned group of people makes the bulk of their purchases, but both the middle class and the upper class do not disdain going to the discounter. At least in Federal Republic of Germany. Germans know how to count, so it’s not uncommon to see the latest model parked near a discount store.
Our compatriots, when they go to discount stores, are usually unpleasantly surprised that they cannot find a salesperson in the hall, there is no one to ask anything, range very limited, cleanliness also often leaves much to be desired. But they are very pleasantly surprised at the prices and say: “When will it be possible to buy from us at such prices?” The question is rhetorical: in our country, the existence of a discounter format is now simply unrealistic: due to accounting reasons, sanitary requirements and standards, and due to labor legislation.
Discounter is
Sources
kommersant.ua Kommersant
ru.wikipedia.org Wikipedia the free encyclopedia
info-stalking.com Consulting organization - Info-stalking
torgrus.com Retail news and technologies
Investor Encyclopedia. 2013 .
Discounter- (from the English discount discount, make a discount): A discounter is a type of store that sells retail at prices close to wholesale. A discount airline offering low transportation costs by minimizing the costs provided... Wikipedia
DISCOUNTER- in industrialized countries, a store that sells consumer durable goods at discounted prices without providing any additional services. Dictionary of financial terms... Financial Dictionary
Discounter- English discount house is a store that sells durable goods, mainly household and electronic appliances, at discounted prices and without additional services for customers. D. usually sells not the newest models and developments.... ... Dictionary of business terms
Discounter- (discounter) - a person who takes into account bills ... Economic-mathematical dictionary
discounter- discounter 1. Accounting for bills of exchange. 2. Discount interest charged by banks when discounting bills. 3. In exchange and foreign exchange transactions, a discount on the price of a product or currency. [OAO RAO "UES of Russia" STO 17330282.27.010.001 2008] Topics economics Synonyms... ... Technical Translator's Guide
discounter- m. see discounters Efremova's Explanatory Dictionary. T. F. Efremova. 2000... Modern explanatory dictionary of the Russian language by Efremova
Most Russians are familiar with hypermarkets, where you can purchase essential goods at very attractive prices. Of course, many immediately guessed that these were discounters. They usually represent a whole chain of stores and are of particular interest to buyers looking to save money.
Where did the term "discounter" come from? This word is derived from the English “discount”, which means “discount”. And in trade terminology, “discounter” means a low-price store with a self-service system. In Europe, similar retail outlets have existed for quite some time. But they came to Russia only in the 2000s.
The low cost of goods in stores of this class is possible due to minimal trade markups, which usually do not exceed 12-15% of the purchase price. In ordinary stores and supermarkets, the markup on goods can sometimes reach 50%.
A discounter is a store with a narrow assortment, limited only to everyday items and essential goods. Thanks to costs in product selection and savings on retail space, the retailer can reduce costs associated with pre-sale preparation. Therefore, the markup in such stores is relatively small.
According to managers, marketers and economists, it is important for a discounter store to be located at the intersection of consumer flows, in new areas, in the sites of old-format supermarkets and in popular shopping centers.
The start for the emergence of new format stores (discounters) was the 1998 default. It was then that such points were created in order to attract a new buyer with an income below average. If until this moment large retailers worked in the average, and more often above average, price segment, now they are ready to attract customers to their stores who buy basic food and household goods in markets and stalls.
The first among such discounters in Russia was the Kopeika chain of stores. Then other large retail chains followed: Magnit, Perekrestok, Pyaterochka, Dixie, Holdy and so on. Today, discounters are fast-growing retail chains. There is always and everywhere a demand for their product range. At the same time, retailers do not put forward special requirements for the area of retail premises and their appearance. The main requirements here are a suitable area of retail and warehouse premises and convenient transportation.
Stores of this class, which appeared in Russia in the late nineties and early 2000s, were more like warehouses. The level of service and quality of the goods offered also left much to be desired. However, today, despite the necessary costs due to savings on retail space and quality of service, discount stores have reached the level of regular stores. Now customers do not want to purchase products that suit them in price, but do not suit them in quality. Therefore, the range of products offered undergoes strict monitoring and control.
A review of modern retailers shows that stores of this class operate in two formats. The most attractive for both the continuous flow of customers and the retailer itself is the “hard” type of discounter. The meaning of this concept is associated with savings on renting space and staffing. There is no need for warehouse space or warehouse employees. They are usually between 200 and 300 square meters. The goods in such retail outlets are supplied directly from distribution centers and displayed on the sales floor without pre-sale preparation - in boxes and crates. For such a discounter to generate optimal income, the retail network must consist of at least a hundred similar stores and have a well-thought-out logistics system with its own fleet of vehicles and distribution warehouse centers.
The first hard-format discounters appeared in Germany in the early 60s of the last century. Classic representatives of the grocery chains Aldi and Lidl still work there successfully. Moreover, the network of these stores has spread throughout Europe and America. Today, these retailers have captured a significant share of the German market, amounting to just over 45%.
In our country, one of the most prominent representatives of such retail chains is Magnit. It is by the example of this operator that you can understand what a hard format discounter is. The warehouse logistics of this retail chain involves the use of retail space of no more than 300 square meters, with minimal renovation and simple design. However, the presented Magnit product line is much wider and richer than that of its European counterparts. The retail network represents more than 3,000 items of everyday goods, most of which are sold out within a few days. This makes it possible not to use warehouses and utility rooms, i.e. does not require storage costs.
Thanks to a centralized system for supplying goods from a single distribution center, Magnit can reduce possible costs to the maximum. The retailer has its own fleet of vehicles, consisting of heavy-duty trucks and refrigerators, as well as small maneuverable gazelles. Well-organized transport logistics make it possible to seamlessly deliver goods to any area of the city. Another advantageous factor in the successful business of a retail chain is an automated system for monitoring the movement of goods. As you know, a properly organized system of supplying goods allows the network to develop effectively. Based on the results of past years, Magnit has become the leader among Russian discounters. The company annually receives huge profits and constantly increases turnover.
However, despite all the advantages of the hard discounter business model, this type of store is absolutely not attractive to buyers with average incomes. What can we say about people with high incomes? They don’t really want to go to such stores, however, this category of buyers also has a desire to save money. It is precisely this range of customers that soft format discounters are designed for.
The pricing policy in such stores is slightly higher than in “hard” discounters, however, the level of service and assortment are much better. Typically, their retail premises occupy large areas and are equipped with an extended cash register line, which eliminates the formation of queues.
Of course, the presence of food discounters on the Russian market has a positive impact on the development of the economy and the well-being of citizens. However, the groups of goods presented in such trading establishments are not limited to food and essential goods. Today, many large inexpensive stores of clothing, shoes, electronics, and household appliances have appeared. There are also discount pharmacies.
The most prominent representatives of shoe retail operators in Russia are TsentrObuv and Mattino. The constant influx of customers into the stores of these companies is ensured by low prices for the goods presented. Their regular customers are people with low incomes.
Typically, shoe discounters present a product line from imported and domestic manufacturers. They may offer products of their own production, produced under a similar brand. For example, TsentrObuv presents a fairly wide selection of shoes and leather goods with a company logo.
The low cost of goods presented by the network is ensured by saving on costs associated with staffing and renting warehouse space. that is why all goods coming from a single distribution center are located directly on the sales floor. At the same time, special emphasis is placed on a high level of self-service. There is a minimum number of employees and cashiers on the sales floor. Thanks to the special display of goods, the buyer can independently choose the appropriate model, size and color of shoes. Large retailers representing consumer goods and clothing items operate according to a similar scheme.
In recent years, there has been a noticeable increase in the number and level of development of sports discounters offering sporting goods and accessories.
Discounters of household appliances and electronics are especially popular among Russian consumers. A good example of this type of store is the large TechnoPoint chain. Sales methods that are completely new for Russia have allowed this retailer to strengthen its position in this sector of the consumer market. Minimizing costs for renting retail and exhibition halls, pre-sales and service preparation, as well as reducing the hiring of specially trained employees, allows the company to provide goods at low prices.
Automation of the sales process using computer terminals, fast delivery of goods at a specially rented point and good discounts for regular customers - all this ensures a continuous flow of customers all year round. An effective pricing policy and unhindered exchange of goods in case of poor quality, as well as the simplicity and convenience of purchasing any piece of equipment from the presented product line have a positive effect on the company’s popularity. That is why this retailer is successfully developing and increasing its trade turnover every year.
Brand YES! entered the Russian retail market in September 2015 and took a strong position among the leading representatives of Russian retail.
In 2015 we opened the doors of our first 35 stores for buyers in Moscow, Moscow region and other regions of Russia. Our team is now successfully implementing large-scale plans to expand the network.
Brand YES! belongs to Fresh Market LLC, which is part of the O’KEY group of companies, one of the largest and most successful representatives of Russian retail. At the same time, the management team YES! has its own unique philosophy and special approach to management.
Chain of stores YES! represents a completely new discounter format on the Russian retail market, which offers customers the optimal price-quality ratio. How do we achieve this? Thanks to the effective organization of business processes, the introduction of advanced retail technologies and modern equipment.
YES! will tell you some examples of how you can save effectively with us:
Distribution center
In stores YES! We offer you products from famous world and Russian brands, as well as a large selection of products produced specifically for YES! under our own brands. Products under our brands are presented in convenient, bright and attractive packaging, but most importantly, we constantly monitor the quality of our products to ensure they meet the highest production standards. Our specialists do a great job of researching consumer preferences, as well as conducting tastings and taking into account the opinions of experts and consumers in evaluating the products of many suppliers in order to offer you only the best products. YES! discounts and promotions, special offers await you YES! - it's profitable.
Say "YES!" shopping in modern, spacious and comfortable shopping areas in a comfortable atmosphere. In any of our stores you can easily find the department you need - all stores in our network are organized according to the same pattern so that finding the necessary goods among the departments does not cause difficulties. At discount stores YES! customers will always be pleased with the ease of choice and comfort in shopping, and carefully trained and friendly staff are always ready to help the buyer.
Discounters YES! - Low prices near you!
Discounts and promotions YES! We invite you to visit the stores of the YES! retail chain:
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Many domestic buyers are interested in the question of what these are discounters. This is a special store whose operating principle is based on self-service. Customers are offered essential goods and various products at minimal prices. Discounters apply a trade markup of no more than 15%.
The goods presented on the shelves in discount stores are no worse than the goods of other stores. However, this store format is aimed at maximizing cost reduction. Therefore, the wages of service personnel are low, and the store does not make a variety of requirements for the qualifications of its personnel. The discounter sells products that do not require special staff skills when selling them: weighing, packaging, consultation, barcoding, etc.
Due to the low wages of low-skilled employees and a small number of highly paid managers in the central office, a maximum reduction in store costs is possible. Also, such stores have minimal maintenance costs and low quality equipment. The interior of such stores is very simple and economical. By purchasing a large batch of goods, the store can sell it within 2 or 3 days. This is due to the rapid turnover and high demand for the products presented.
In order to understand what it is discount store, it is necessary to know the principles of its structure and organization. The prices of the discount store are as close as possible to wholesale prices, therefore they are attractive to end consumers. Not every store that positions itself as a discounter actually is one.
Discounters are a network of corresponding stores, which provides the opportunity for several stores to exchange batches of goods. Within one network, goods are redistributed in accordance with the needs of customers. The store's assortment includes several hundred products that are the most popular. Therefore, the range of such stores can be called universal.
When answering the question about what discounters are, you need to know the main features of the store format. Discounters are in great demand among low-income people. As a rule, such stores have an area of 500 to 1500 square meters with a limited range of goods. The design and layout of such retail outlets are simplified as much as possible. Discount stores are built in large residential and residential areas to make it convenient for people to get to the store without a car. Some discounters are designed for car owners.
As a rule, such stores are located at the intersection of major highways within the city. These could be electronics stores, grocery discounters. Retail chains are trying to develop in the direction of multi-format. An example is the Auchan company, which is actively developing the Atak discount chain and Auchan hypermarkets. The Seventh Continent company is focused on developing stores of three formats: supermarkets, convenience stores and hypermarkets. The Dixy chain was focused on developing discounters, but is now opening stores within walking distance and hypermarkets. The Magnit chain of stores has focused its efforts on opening hypermarkets and supermarkets. The given examples allow us to answer the question of potential buyers about what a discount store is.
Discount store owners have a great chance of becoming leaders, since many of those involved in the retail sector are experiencing serious difficulties in the economic crisis.
Many experts note that this store format is highly competitive and has a growing tendency. Therefore, interest in discounters has increased significantly recently. Despite the minimal list of goods and services, buyers prefer such stores due to low prices. Such stores are characterized by simplified merchandising and a flexible financial policy.
Discount shoe stores have gained wide popularity in the domestic market. Among them are the following:
The presented stores are large retail chains at the federal level. Stores regularly hold seasonal sales and promotions. The discounter can also apply a special flexible system of discounts for customers. A special way of displaying goods, which makes it possible to create the impression of a large assortment, and low prices are the main factors due to which traffic in stores is always high. Reviews from many customers claim that in such shoe centers you can only buy shoes of the same type, and the predominant color is black. However, black is the most popular color, so it allows the discounter to reduce costs.
Some discounter owners enter into exclusive contracts for the supply of goods, allowing them to sell goods at prices below the market average. In turn, this has a positive effect on sales dynamics and competitiveness. The largest manufacturing companies, which intend to get rid of remaining goods, supply discount stores at low prices. Therefore, buyers can also purchase products in the mid-price category. Customers can also purchase products from well-known manufacturers on the most favorable terms.
Electronics and appliance discounters have gained wide popularity among domestic buyers. As an example, we can cite one of the largest networks of this format - TechnoPoint. This retailer has firmly strengthened its position in this market segment. The company sells goods at low prices by minimizing costs for renting sales floors, service and pre-sale preparation. A continuous flow of customers is ensured by complete automation of the sales process, as well as prompt delivery of goods. Unhindered exchange of goods and effective pricing policy have a positive effect on the popularity and reputation of the company.
The lion's share of the products presented is imported from China. However, some stores sell similar products under their own brands. At discounters you can also buy high-quality goods presented by domestic and European manufacturers. The assortment is formed on the basis of sales statistics. In this regard, in discounters you can find many fashionable and popular models that are in stable demand among customers.
According to their trade policy, all discounters can be classified into the following types:
Hard discounters do not apply a flexible system of discounts and do not conduct seasonal promotions and sales. The soft type is characterized by the use of systematic sales and various promotions.
The mentality of domestic buyers is formed in such a way that it reacts precisely to the presence of sales and various discounts. Using a soft trade policy allows you to increase purchasing activity. Promotions, gifts and big discounts at discounters arouse great interest among potential buyers, so traffic at discounters is constantly growing.
The first discount stores appeared in Germany in the late 1950s. The widespread development of stores of this format has led to the fact that half of the turnover in this country comes from discounters. This format attracts even those customers who prefer to make purchases in brand stores. This led to the formation of a new type of consumer phenomenon, which was called smart shopper (cunning buyer). This definition implies that the buyer purchases not only luxury goods, but also makes economical purchases. Due to the increase in the number of such buyers, there is an increase in sales at discounters.
Discounters have become very popular in developing countries: Mexico, China, Brazil and India. Domestic stores successfully compete with foreign analogues and enter international markets. Among them are the following discounters, which are market leaders in terms of traffic and trade turnover.
Discounters are department stores operating on a self-service basis and selling mainly food and partly non-food everyday goods at low prices. Experts call these stores “a truncated version of supermarkets,” where the same sales method and similar assortment are maintained, although not as wide. The average sales area of these stores is 600 square meters. m, although stores with an area of up to 3000 sq. m are known. m. Low prices at discounters are ensured by minimizing maintenance costs, low quality equipment, and cheap store fittings. As a rule, these stores are not located in the city center, but are built in residential, so-called “dormitory” areas. The discounter is aimed at all residents of nearby neighborhoods who do not want to pay extra money for everyday goods. Today, discounters are a serious competitor to high street markets.
Discounters are usually divided into “hard” and “soft”. The most promising formats in global retail practice are rigid formats, one of which is a grocery discounter.
Hard format- this is a room of up to 1000 square meters, practically without renovation, a narrow assortment - from 500 to 2000 positions, with at least 50% of it occupied by own brands, goods on pallets, self-service, a minimum markup, and due to all this - very low trade margin 5-7%.
Soft format (Soft discounter)- these premises are already 5-10 times more spacious, there is a larger assortment, goods are on racks, shelves, and display cases. But the consequence of this is a slightly higher premium, because servicing a larger assortment is more expensive for the operating company, and accordingly, the price is slightly higher.
The first discounters appeared in Germany almost 40 years ago. Initially, they occupied a small share of total trade turnover. Today in Germany, discounters occupy 50% of the retail grocery market.
Discount stores are becoming widespread all over the world, especially in Europe, and are actively spreading in Russia.
However, according to experts, today there are no hard discounters in Russia, which is primarily due to the inability to organize in practice the business model of a discounter store, which is characterized by low costs due to optimal logistics schemes, efficient staff work, and reaching special agreements with suppliers. In addition, the Russian market of retail chain formats is at the beginning of its development and is not yet oversaturated with modern formats. This means that while other formats are in demand that do not require such a highly efficient organization of business processes as a discounter, retailers prefer to work in them, thereby making their profits in a simpler way.
The economic crisis made some adjustments to the development of network formats. The decline in household incomes has led to an increase in the share of buyers who spend most of their family budget at discounters. Consumers are consciously moving away from the large average bill, which they anyway make in hypermarkets, in favor of a discounter, where it is lower. At the end of 2009, the share of those who make their main purchases at discounters increased from 26% to 34%. This is the only format that showed growth in 2009.
The largest chains that classify themselves as discounters:
· retail chain “Pyaterochka” - operates in the “soft discounter” format;
· retail chain "Kopeyka" - "Soft discounter";
· Dixy retail chain - operates in a “hard discounter” format - as of April 30, 2010, there are 529 Dixy food discounters in three federal districts of Russia: Central, Northwestern and Ural.
The share of discounter chains at the end of 2009 was 4%. For comparison, in France their share reaches 13%, in Germany 50%., which is due to the national characteristics of a particular country. In Russia today the format has great development prospects.
Figure 8 Share of discounter chains in the Russian food retail market for 2009
