Partnering with Europe’s variety discounters

Across Europe, the impact of variety discounters on grocery retail continues to evolve. We look at three retailers leading this charge, how they are meeting the needs of shoppers and highlight opportunities for suppliers.

Action – Netherlands

The Dutch based retailer continues its impressive expansion across Europe, with over 250 stores added so far this year and entry into the Romanian market in September 2025. It will grow on its 14 markets of operation, with expansion into Croatia and Slovenia planned for 2026. It is very strategic with its new store openings, with many Action stores located close to leading grocery retailers to benefit from the footfall they attract.

It is not relying on new stores to drive sales growth with its latest financial results showing an impressive +5.7% LFL increase, as its growing value reputation resonates with shoppers in the region.

It has developed a clear value proposition, with most items under €5 and around two-thirds of the assortment under €2. This helps to attract budget-conscious shoppers and encourage repeat visits.

Key to its success is its sourcing, using a mix of A-brands, importers and wholesalers, direct sourcing and stocklot traders to keep its prices low.

A-brands can help the retailer drive its quality perception and footfall to its stores. Importers and wholesalers support its shopper proposition, keeping the assortment fresh with new products and delivering its seasonal ranges. Stocklot traders are essential for delivering a low price, treasure hunt experience for shoppers, which can help to increase basket spend.

An opportunity for suppliers is within Action’s private label ranges, currently commanding a modest proportion of the assortment but it is growing and gaining popularity with shoppers.

Normal – Denmark

Normal is approaching 1,000 stores across 10 European markets, including Denmark, as it adds around 200 stores per year to reach its long-term aspiration of operating 3,000 stores.

Its engaging store design, pricing strategy, assortment and social media activity has seen the discounter grow a significant Gen Z and Millennial following.

It predominantly focusses on cosmetics, personal care and household categories, aiming to undercut competitors by utilising parallel imports from EU wholesalers. This makes suppliers that can offer large volumes at discounter rates very attractive to the retailer.

Normal’s unique concept also includes a maze-like layout, forcing shoppers to browse and discover new items to increase the possibility of impulse purchase. Its assortment is constantly refreshed, adding around 100 new products per week, making it important for suppliers to offer variety and agility to meet these demands.

It also aligns to current trends, with viral products well highlighted in store in designated areas. This will allow suppliers who provide viral or innovative products to quickly gain traction in Normal’s markets of operation.

Home Bargains - UK

The UK’s leading variety discounter is pursuing its long-term aspirations of operating between 800 and 1,000 stores in the market, continuing to build on its 617 stores that it ended its 2024 financial year with.

To support its growth, Home Bargains has been investing in its supply chain with a new automated distribution centre opening earlier this year. Its partnership with Witron, to develop an automated order picking system, has improved supply chain efficiency and boosted product availability in stores. Another distribution centre is planned for 2028.

Building additional efficiencies into its business model helps Home Bargains to offer products at affordable prices, with many ‘Star Buys’ highlighted by shelf-edge signage across the assortment. To provide an exciting treasure hunt experience to shoppers, around 30% of the stock is one-off, clearance or closeout products.

Health & beauty and household products have become destination categories, with brands at low prices playing a key role in these. The assortment is much broader than that of food discounters Aldi and Lidl, providing more opportunities for branded suppliers in the discount channel.

It has recently been expanding its food grocery ranges, allowing shoppers to easily complete a full shop in store. This has been boosted by development of private label products, providing another opportunity for suppliers to work with the discounter. Private label development is apparent across the whole grocery and non-grocery assortment.

New stores are also including self-checkouts, as it looks to improve and speed up the payment journey.

It is also developing its online proposition, with home delivery available on products from the non-food assortment and a growing presence on social media. Suppliers can collaborate on digital merchandising to raise brand awareness.