Grocers Aldi and Waitrose have been revealed as the fastest growing-retailers in the UK, according to new research.
The study by OC&C Strategy Consultants found that value and premium brands dominated the list.
The figures, which were unveiled at Retail Week Live, saw 10 value stores including Primark and B&M Bargains named among Britain’s fastest-growing retailers, alongside six premium-end businesses including Burberry and Harrods.
Online grocer Ocado was the only other food retailer to make it into the top 20 of the study, which ranks retailers by revenue growth in the UK and the biggest western retail markets including the US, France, Germany, the Netherlands and the Nordics.
German discounter Aldi has seen revenues soar by an average of £1.2bn a year since 2011 after opening around 40 new stores in the UK every year, OC&C said.
Waitrose revenues rose by an average of £360m a year over the same period thanks to robust like-for-like sales performance, new store formats and developments in their ecommerce offer.
Quick to adapt
The top 20 fastest-growing retailers recorded an average of 17% revenue growth since 2011, while the average UK retailer grew at an average of just 1%.
OC&C head of retail Anita Balchandani said: “We’ve seen the majority of growth in the retail sector come from its polar extremes in terms of price position.
“Although at first glance these retailers have little in common, what they all share is a trait to adapt the quickest to what matters most to customers, create strong propositions that are well-rated by customers, and good, transparent value, regardless of their price position.
“Retailers are succeeding by giving customers the ability to shop on their own terms and reducing all points of friction in the shopping journey.
“We’re seeing a range of key customer trends – be they the growing importance of convenience, value, luxury and healthy and active lifestyles. Those retailers which grow will find that they do so by exposing their businesses to these tailwinds.”
Mark Price, managing director of Waitrose and deputy chairman of the John Lewis Partnership, said: “It’s good to see Waitrose amongst the fastest growing retailers. Against the backdrop of a tough, deflationary market we’ve increased sales, won new customers and gained market share.
“This growth results from the investments we’re making to create Modern Waitrose: new shops, services and hospitality in existing branches, driving our online and convenience businesses, deepening relationships with customers through the myWaitrose card and, of course, staying ever-focused on fabulous products and top-notch service.”
The 20 Fastest Growing Retailers in the UK
1. Aldi (UK & Ireland)
3. Sports Direct
6. John Lewis
7. Home Bargains
8. B&M Retail
10. JD Sports
13. The Range
20. Dunelm Mill
The 10 Fastest Growing Retailers in the West (the UK, US, France, the Nordics, Germany and the Netherlands)
5. Aldi Group
9. TJX Companies