The UK discount retail market is set to grow by 36.1% reaching a total value of £32.5bn by 2022 according to GlobalData, with DIY, gardening and homewares gaining market share from mainstream retailers.

The company’s latest report: UK Discounters 2017-2022 reveals that discount retailers could gain an extra £9bn slice of the total retail market as they become a more appealing destination for consumers looking for bargains as inflation continues to squeeze their disposable income.

This will be good news for Aldi, Lidl and B&M Bargains which dominate the channel with a combined share of over 70% of the discount retail market. DIY & gardening, health & beauty and homewares will deliver the strongest category growth.

Of the UK population 89.4% have shopped at a discounter in the past 12 months with food and grocery (F&G), non-discretionary household goods and health & beauty (H&B) the most popular product categories with shoppers.

“Our report findings confirm that discounters have done an exceptional job in gaining market share of frequently purchased items by changing the perception of discounter own label products in F&G while at the same time undercutting mainstream retailers on branded items in H&B and household,” said GlobalData Retail senior food & grocery analyst Molly Johnson-Jones. “This combined approach has proven to be very disruptive in the market and contributed to their success.’’

DIY & gardening and homewares are forecast to grow 46.6% and 42.6% respectively for the period 2017-2022 as discount retailers gain market share from mainstream DIY retailers by offering consumers lower cost solutions for household maintenance and upgrades. The rollout of larger out-of-town store formats has facilitated broader ranges, providing them with more authority in the home sectors.

Consumers are likely to perform fewer and smaller upgrades on their homes during the forecast period due to declining disposable income. This will benefit discount retailers homewares sales as they continue to improve their shopper appeal by increasing their range and incorporating greater trend influence while ensuring affordability which is crucial for driving impulse and gifting purchases.

“The discounters have expanded their range in the DIY and gardening market at a time when consumers are seeking reduced cost solutions for doing up their homes and gardens; B&M will particularly outperform in this area as it adds garden centres to its retail estate over the next few years,” concluded Ms Johnson-Jones.