Ladi Discount

To: Mr. Theodor Von Hessen Chief Executive Officer, Ladi Discount

From: John Faggit Business analyst, Ladi Discount

Date: October 23, 2015

Subject: The development of consumer behaviour and the industry of discount stores and supermarkets in Denmark.

As you requested on October 19, this briefing provides information about the current situation at the Danish market within the industry of discount stores and supermarkets as well as consumer behaviour. I here present a summary of the most important elements from my research.

Key findings:
The past 10 years we have experienced an increase in the consumption of the average Danish consumer on about 30 per cent. People are getting richer every year and therefore spend more money.

During the last 15 years, the consumers’ spare time has been reduced by two hours in weekdays. They have less time to shop in stores and spend more time shopping online with the effect that there will be fewer “offline” shops. However, those remaining will become bigger (an average increase in area by 2-3 per cent the latest years). On that behalf, the location of shops and supermarkets is becoming even more important. In malls, and other places where there tend to be more people during the day, will become an attractive place to be located.

How to attract customers will be vital in the future where clean concepts and interior design in shops will be essential to retain customers and attract new.
The turnover of discount shops and supermarkets is increasing because people care more about price and quality than brands. Brand loyalty is declining and therefore we will experience an increase in sales of private labels. On this basis, shops and supermarkets have to put more focus in communication and innovative marketing that must create turnover in the future, as brands no longer will generate the