After value powerhouse B&M unveiled its latest spike in profits and sales last week, the retailer hiked up its UK store target from 850 to 950.
Yet it’s far from just B&M eyeing larger portfolios, as the value sector continues to gain traction.
But which locations are such players flocking to in order to expand their portfolios? New research conducted by retail property consultants Harper Dennis Hobbs for Retail Week lifts the lid on the UK’s value retailing hotspots.
|Rank||Retail location||Number of value brands (2017)||Number of value brands (2012)||Percentage change over five years|
Although there is no particular geographical pattern, the majority of the hotspots are secondary towns or locations of lower affluence.
Value operators have gravitated to such regions in the past five years, with locations including Romford, Liverpool, Bolton, Huddersfield and Middlesbrough emerging among the most popular homes for cut-price retailers.
Harper Dennis Hobbs head of retail consultancy Jonathan De Mello said: “Since the markets crashed in 2008, value and discount retailers have exploded in prevalence − many taking advantage of the eminent availability of stores given the spate of administrations that followed, as well as an increasingly frugal UK shopper.
“Whilst value retailers such as Poundland, B&M, Aldi and Lidl are now relatively ubiquitous, the growth of value retailers has not abated over the last five years.
“Some towns are now dominated by value/discount retail, and little else. West Bromwich is a good example of this, seeing seven new value retailers open their doors in the town since 2012. Romford, Bradford and Hounslow have also seen strong value retailer growth.
“However, value retailers have clearly penetrated more than just these markets, as some mid-to-high affluence towns also feature on the list, such as Cardiff, Gloucester and Warminster.
“This shows that value retail is here to stay − saving money is now firmly entrenched in the psyche of UK shoppers, regardless of their affluence levels.”
Harper Dennis Hobbs analysed the store openings and closures of 12 of the UK’s fastest-growing value retailers across the country since 2012.
It collated data gathered on Aldi, B&M, Card Factory, Home Bargains, Iceland, Lidl, Pep&Co, Poundland, Poundworld, The Range, Wilko and The Works to establish the towns and cities that value retailers were most prevalent in.