In 2025, a handful of tectonic shifts are reshaping the global retail industry. One of these developments is the unrelenting rise of discount-orientated retail formats, which continue to outperform the rest of the market as economic uncertainty weighs on the global consumer base. Another is the ongoing evolution of social media platforms into important retail channels in their own right, a trend that has sparked a revolution in the e-commerce space.
Low prices power high growth for discount retailers
Low prices are an evergreen consumer concern. In tough economic times, however, the allure of low prices becomes greater, as more middle-income consumers seek to stretch their savings further. Unsurprisingly, then, store-based retail channels that prioritise low prices – discounters, warehouse clubs, and variety stores – did particularly well, on a relative basis, in 2024, recording steady growth in real terms, even as overall offline retail sales declined. Discounters and warehouse clubs, in particular, benefit from having robust private label strategies, a factor that has helped to power sales growth for these channels as shoppers looking to cut costs are enticed by the relatively low price points that have traditionally made store brands a safe haven for consumers in times of economic stress. As a result, these discount-focused channels are again projected to significantly outperform top-line offline retail sales in 2025.
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