A A report from the Agriculture and Horticultural Development Board (AHDB) found that thrift stores, discount stores and freezer stores could offer future growth in red meat sales.
According to the Institute of Grocery Distribution (IGD), discount stores, freezers and bargains are expected to be worth an additional Â£ 6.6 billion a year by 2026, with much of that value shifting from supermarkets.
The discount channel currently holds 13.1% of the total grocery market according to IGD and is expected to reach 15.0% by 2026.
The AHDB reported that before the pandemic, discount stores, freezers and bargains saw steady growth in red meat, while total volumes of red meat fell to decline. During the pandemic, AHDB has seen this gap narrow as the channel gets closer to total market growth.
The Council said that the main driver of this development has been the hard discounters. These stores over-index the value of red meat in relation to their share of total food and beverage sales (excluding alcohol) (13%), representing 15% of red meat sales in value and 18% of volumes at over the past year (Kantar, 52 with August 8, 2021).
While bargain stores are a small channel for red meat, accounting for less than 1% of total volumes, the AHDB found that these channels were experiencing tremendous growth before the pandemic. However, they haven’t been boosted by the pandemic in the same way many other grocery stores have.
AHDB said: âThe bargain stores trade in primary red meat, with a large emphasis on processed pork. To attract buyers for their supermarkets or refills, it is essential to broaden the range of products offered to retain these buyers in the future.
âWithin red meat, however, all subchannels of the lamb trade, if the category were to achieve its fair share it could be worth around Â£ 48million per year for the category. Hard discount vendors should consider different ways to entice these lamb buyers while keeping the price lower than other retailers.