West Midlands retailer named fastest growing in the UK

WARWICKSHIRE-based discount supermarket chain, Aldi has been named the UK’s fastest growing retailer in a new study.

The report, compiled by OC & C Strategy Consultants for the start of the Retail Week Live event, lists the Top 20 fastest growing retailers in the country.

Black Country-based fixed price retailer Poundland also makes it into the list, ranked No 11.

In contrast to these, prestige supermarket group Waitrose is ranked the second fastest grower.

In fact the contrast between the discount and premium ends of the retailer spectrum characterise the whole of the list, suggesting middle ground, established retailers are finding it hard to compete.

Overall, six premium brands appear in the UK rankings alongside 10 value brands.

German-owned Aldi has grown revenues by an average £1.2bn per year since 2011 (approximately 38% year-on-year growth), as a result of opening about 40 new stores in the UK every year.

Waitrose, headed by Greater Birmingham and Solihull LEP chairman Andy Street, has seen revenues grow by an average £360m per year (approximately 7% year-on-year growth) over the same time period, due to a robust like-for-like sales performance, new store and format openings and developing their online offering.
 
Anita Balchandani, Head of Retail and Partner at OC&C Strategy Consultants, 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.”
 
The study, which analyses the fastest growing retailers in the UK and the biggest Western retail markets (the US, France, the Nordics, Germany and the Netherlands), reveals that the UK has been a retail growth hotspot in the face of a challenging macroeconomic environment for those retailers that have managed to seize the opportunity. Fashion brands in particular, including Burberry and Net-A-Porter.com have been the engine for growth in the UK.
 
While the average retailer operating in the UK grew by an average of only 1%, the top retailers in OC&C’s rankings have seen average growth of around 17% over the same time span. This has been the case not only for homegrown brands like ASOS and AO.com but also foreign retailers expanding in Britain, such as Aldi.

Anita Balchandani, Partner at OC&C Strategy Consultants, continued: “The fastest growing retailers in both the UK and across the biggest Western markets show that it is possible to grow against the odds in low-growth economies. They have grown by capitalising on and responding to key customer needs.”

The 20 Fastest Growing Retailers in the UK:

1.     Aldi (UK & Ireland)
2.     Waitrose
3.     Sports Direct
4.     Primark
5.     Burberry
6.     John Lewis
7.     Home Bargains
8.     B&M Retail
9.     ASOS
10.   JD Sports
11.   Poundland
12.   Ocado
13.   The Range
14.   AO.com
15.   Net-a-porter
16.   Harrods
17.   Screwfix
18.   Costcutter
19.   Poundworld
20.   Dunelm Mill