Discount retail has surged across Central & Eastern Europe (CEE), driven by price‑sensitive shoppers, rapid network expansion and strong operational efficiency. As discounters modernise, sharpen value and outpace every other channel, they’ve become the region’s most powerful force in grocery retail. But why have they achieved it, and what is the outlook for them and other channels?

Discount retailers dominate across the region

Discounters’ strong value propositions have made them attractive to shoppers in the region, especially with the economic uncertainty of the last five years. These retailers have seized the opportunity, expanding their estates across CEE. Discount selling space advanced across the region at a CAGR of over 9% between 2020 and 2025, almost double that of the next fastest growing channel. The return on these investments is plain to see, total sales across the region grew at a CAGR of 13.8% in the same period, well above that of any other physical retail channel.

With this, discount now holds a regional market share of over 20% whilst remaining by far the fastest-growing channel in CEE. We expect this position to be further consolidated in the coming years.

Why has discount retail been so successful?

Discounters have surged across CEE thanks to a strong value proposition aligned with shopper priorities: low prices, efficient store formats, and rapid network expansion. We identify CEE as one of Europe’s highest‑growth regions for discount penetration, underpinned by cost‑sensitive shoppers and competitive retail landscapes where simplicity, speed and value resonate strongly.

In Romania, Lidl’s heavy investment and expansion illustrate why discounters win. The retailer is adding 40+ new stores in 2026 and plans 200 more by 2030, scaling both large and compact formats to reach urban, suburban and smaller towns. This broad accessibility, paired with strong local sourcing, continues to draw Romanian shoppers seeking consistent value.

Czechia’s Penny Market demonstrates the importance of network breadth and modernisation. With the country’s densest food retail network (439 stores) and ongoing investment in new stores, modernised formats, and strengthened logistics, Penny remains the leading national discounter by staying close to customers and continuously improving efficiency.

Poland’s Biedronka shows another dimension of success: relentless price leadership and proximity. In 2025 it opened approximately 150 new stores and refurbished many more, maintaining its reputation for the lowest prices while upgrading experience with self-checkouts and expanded counters. This disciplined value‑first strategy keeps the retailer ahead in an intensely competitive market.

Overall, discounters thrive in CEE because they match the region’s price sensitivity with scaled networks, operational efficiency, and evolving, modern shopping environments.

Discount’s initiatives for the future

Not only have offerings like digital loyalty and locally produced ranges become the norm, but discount retailers are also innovating new ways to better serve their shoppers.

Lidl, for example, is looking to build on its strong market positions by improving its reach and offering greater convenience to customers. In Poland, it is piloting 24/6 opening, offering a convenience previously only available in Zabka or Carrefour Express stores, neither of which can compete with Lidl on price. It is also launching mobile stores in Hungary, which will provide the large rural population with access to its products at the same prices as in store.

Value remains discounters’ key point of difference, but as other channels attempt to improve their own value propositions to compete, discounters are beginning to build on their core strategies. Innovation, as well as upgrades on quality and in-store experience show that discounters can offer shoppers the benefits of modern supermarket retail without compromising on price.

Continued dominance for discount retailers

The outlook for discounters across CEE remains exceptionally strong. Our forecasts show that discounters will not only maintain their position as the region’s largest modern grocery channel but will also deliver one of the fastest growth rates through 2030, supported by sustained shopper demand for value. There are still significant expansion opportunities, particularly in secondary cities and smaller towns in larger markets such as Poland and Romania, where store networks are not yet saturated. At the same time, opportunities are emerging in smaller, fast‑growing markets like Slovenia and Croatia, where leading operators, including non-food discounter Action, are already accelerating their presence.

For other channels, the competitive challenge will intensify. As discounters deepen their penetration, it becomes harder for supermarkets, hypermarkets and convenience retailers to compete on price in increasingly cost‑conscious markets. Their route to recovery will depend on how effectively they can differentiate, through smarter range evolution, stronger private-label development, improved missions, and formats that genuinely add value beyond price. The next few years will test how successfully these channels can reposition themselves in a landscape where discounter dominance is set to continue.

For more insights on discount retailers: read our Global discount trends report