CHRIS GILMOUR: Grocery discounter race is on between Boxer and Usave
Both chains are likely to outperform in the sluggish economic conditions that are expected to persist
The term “discounters” means different things to different people. Retail analysts intuitively think of the German chains Aldi and Lidl when the term is mentioned, though laypeople could be excused for thinking stores that are perceived to offer cheaper prices, such as Asda in the UK and Walmart in the US, are also discounters.
Whatever the fine distinction, sales at Aldi and Lidl have been powering upwards in recent months in the UK as the cost of living crisis has really started to bite. And though neither of these German behemoths is active in SA, a number of local discounters such as Pick n Pay’s Boxer chain and Shoprite’s U-save chain are constructed in broadly similar fashion to these discounters. It therefore follows that both of these chains are likely to outperform in the sluggish economic conditions that are expected to remain in place in SA for the foreseeable future...
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