Netherlands: Variety and textile discounters are advancing in the high street: 'Shame to buy there has disappeared'

Discount Retail Chains in the Netherlands are advancing in the high streets. There are now 25 percent fewer shops in our country than in 2010. But especially retail chains with low prices are actually expanding. "In the past, you didn't want to be seen with a bag from textile discounters Wibra or Zeeman, but now people are no longer ashamed of it."

Low prices, but bad products and stores that don't look good. That was the image that consumers had of discounters, says retail consultant Hans Eysink Smeets. "But that has changed."

Fluorescent tubes and uninviting décor have often made way for a nicer atmosphere. "There is nothing in those stores now that shouts: "what a slob you are that you buy here," says Eysink Smeets. Consumers who do not necessarily have to pay attention to the price are now also coming there, he says. "Why would you spend more, when you can also get it at variety discounter Action?"

The fact that discounters have the wind in their sails is evident from the development of the number of stores they have. As can be seen in the above statement, the number of branches of many discounters in our country has increased significantly in recent years, according to figures from Locatus, a research agency that keeps data on stores.

And to think that the total number of stores in the Netherlands has actually fallen sharply. According to Locatus, there were still 105,000 stores in 2010, in 2020 that had dropped to only 90,000 and now there are only just over 79,000 stores.

Price and assortment

The Dutch, as most other customers in other European nations, love low prices, Peter van Heerde, retail expert at Rabobank, explains the rise of discounters. According to him, our preference is also evident from the rise of Chinese web shops. "Especially after corona, when prices rose sharply due to the energy crisis, among other things, consumers started to pay attention to the price."

Although the purchasing power of consumers has increased in recent years, we also save a lot, which you often see in times of economic uncertainty, says Van Heerde. He points to, among other things, the Russian invasion of Ukraine, and the current situation around Greenland. "Given the increase in our purchasing power, you would expect the Dutch to spend more."

In addition to the low price, the range of discounters is also attractive to consumers, he says. "Chains like Wibra, Zeeman, SoLow and certainly Action have many different products, you can always succeed there." And the range changes often, so you regularly find something new and it can therefore pay to walk in every now and then. "You then leave with more than what you actually came for."

The quality of the products of many discounters has also become much better, says Van Heerde. "Often they are not much inferior to A-brands." Some discounters, such as Kruidvat, also sell A-brands, but at a lower price than drugstores or supermarkets, according to Van Heerde.

Lower costs

There are a number of reasons why discounters can charge relatively low prices, he and Eysink Smeets. For example, their costs are often lower than those of other stores. They can often buy relatively cheaply, because because they often have many branches, they buy larger quantities, says Eysink Smeets. Action has more than 3,000 stores.

Why you won't find Action, Marskramer and other chains in the Kalverstraat

When looking for new locations, it also makes a difference that discounters in a shopping street do not have to be on the ground floor, on the first floor is also possible, says Van Heerde. The rent is much lower there and consumers have no problem taking the escalator for cheaper products they find there.

Shops with low prices also spend less money on furnishing shops, and they do not renovate shops as often, says Eysink Smeets. "The rule of thumb is that in retail you redesign a store every 7 years, but chains like Scapino and Wibra don't get there." The service in discount stores is also less than in other stores, which reduces personnel costs, among other things, says Van Heerde.

Bankruptcy of Blokker and Big Bazar

According to him, discounters have also been helped by the bankruptcy of Dutch national chains such as Blokker, Bristol and Big Bazar. As a result, many new buildings became available to them in one fell swoop, allowing them to grow considerably. Wibra, Danish variety discounter Normal and German textile discounter Kik, among others, have taken over locations from Blokker.

And consumers who first bought from chains that went under have partly gone to discounters, Van Heerde concludes.