10 Biggest Discount Store Companies in the World

Published on August 12, 2022 at 9:34 am by Zahra Irfan in Lists, News

In this article we take a look at some of the biggest discount store companies in the world. You can skip our detailed analysis of the discount store industry and go directly to see 5 Biggest Discount Store Companies in the World.

Discount store companies sell products at a lower price as compared to other retailers. E-commerce analytics data from Edge by Ascential shows that there is faster growth in discount stores as compared to other retail environments. Discount stores are proactively keeping pace with their consumers’ needs and are adding more and new features as required. Discount stores such as Dollar General (NYSE:DG) have an expected growth of 5.2% annually through 2024. Shopping patterns for consumers are changing with a change in consumers’ mentality. Consumers are now shopping with smaller baskets. Therefore, discount stores have had high profits in 2021. Hence, in 2022 there was a rise in discount stores. Discount stores have earnings of $469 billion worldwide in 2021 and have projected sales of $583 billion by 2026. Through 2026 discount stores are expected to grow at 4.4% compound annual growth rate (CAGR).

According to eMarketer, as the struggle to evade inflation increases consumers are spending more cautiously and real public expenditure decreased by 0.4% in the last two years. Therefore, discount retailers are capitalizing on price consciousness to increase their footprint. Major retailers like Walmart Inc. (NYSE:WMT) Costco (NASDAQ:COST) and Dollar General Corporation (NYSE:DG) are increasing their discount offerings to attract budget-conscious consumers.

Methodology

In this article, we have used research reports from credible sources like eMarketer, Fortune, and National Retail Federation to list the world’s 10 biggest discount store companies based on their market capitalization as of June 2022.

Biggest Discount Stores Companies in the World

10. Pepco Group N.V. (WSE:PCO.WA)

Market Cap – $4.24 Billion

Pepco Group N.V. (WSE:PCO.WA) is one of the fastest-growing European discount store companies in the world. They have around 3600 stores across Europe facilitating 50 million shoppers each month. The core shopper and target audience for Pepco Group N.V. (WSE:PCO.WA) is “mum on a budget” with her regular shopping and needs under one roof. Pepco Group N.V. (WSE:PCO.WA) provides a multi-category assortment being its differentiation key as compared to its competitors in the discount sector those focus on a single category. Revenue for Pepco Group N.V. (WSE:PCO.WA) for the half year ending in March 2022 was € 2,372 million with 17.2% year-on-year growth.

Pepco Group N.V. (WSE:PCO.WA) maintained their market position on prices by reducing the cost of business. At a time when there was a significant pressure on household budgets due to inflation Pepco Group N.V. (WSE: PCO.WA) was able to protect its customers from price rises on some of their products. Like Walmart Inc. (NYSE:WMT) Costco (NASDAQ:COST) and Dollar General Corporation (NYSE:DG) , Pepco is one of the favorite options for budget-conscious customers.

9. B&M European Value Retail SA (LSE:BME.L)

Market Cap – $4.63 Billion

B&M European Value Retail SA (LSE:BME.L) is UK’s leading discount store company providing its customers with best-selling items across general merchandise categories and grocery at value prices. They have adopted a low-cost approach by sourcing products directly from manufacturers and leading brands. B&M European Value Retail SA (LSE:BME.L) operates around 650 stores in the UK retail market. Strong cost control at B&M European Value Retail SA (LSE:BME.L) is also done by maintaining low head office costs through minimal staffing and IT. Moreover, B&M European Value Retail SA (LSE:BME.L) does not waste any money on marketing activities as 97% of the customers are there due to a friend’s recommendation or location.

For the first quarter of 2022, the company reported total revenue of $1.41 billion and a $639 million pretax profit for the year ended March 2022.

8. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ)

Market Cap – $8.491 Billion

BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) is one of the leading operators of membership warehouse clubs in the Eastern United States currently operating over 215 clubs in 17 states and ranks 8^th in the list of 10 biggest discount store companies in the world. People shop from places like BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) because they can bulk buy at a low price and stockpile supplies. They have high quality and private label merchandise at low prices. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ)’s membership increase 3% yearly and 15% in two years. During the Pandemic the quality of BJ’s memberships also improved adding “higher-tier” customers. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) digital sales went up by 244% on a two-year basis seeing their digital channel shine. BJ’s Wholesale Club Holdings Inc.’s (NYSE:BJ) revenue for the year ending in April 2022 was $17.296 billion with an 11.58% year-on-year increase.

7. Pan Pacific International Holdings Corp. (TYO:7532)

Market Cap – $9.535 Billion

Pan Pacific International Holdings Corp. (TYO:7532) is one of the biggest discount store companies in the world and has a chain of discount stores those provide retail miscellaneous household goods, electrical appliances, fashion merchandise, food, and watches. It operates 631 stores in Japan, Hawaii, California, the United States, Hong Kong, Thailand, and Singapore. Discount stores under Pan Pacific International Holdings Corp. (TYO:7532) are Don Quijote, Mega Don Quijote, New Mega Don Quijote, Don Quijote UNY, Mega Don Quijote UNY and Nagasakiya. Pan Pacific International Holdings Corp.’s (TYO:7532) revenue for the nine months ended in March 2022 increased by 8% to $10.7 billion and the net profit also increased by 2%.

6. Dollarama Inc. (TSE:DOL)

Market Cap – $21.816 Billion

Dollarama Inc. (TSE:DOL) is recognized as Canada’s discount retailer providing value to the customers with stores in around 1000 locations in small towns, mid-sized cities, and metropolitan areas. The company operates 1,421 discount stores as of January 2022 and operates through an online store as well. In June 2022, Dollarama Inc. (TSE:DOL) rolled out a new price point that stated that they will now stock goods under $1 to $5. Raising the price point to $5 has enabled Dollarama Inc. (TSE:DOL) to stock popular products that were removed previously due to rising costs and to maintain its position as one of the biggest discount stores in the world. Sales for Dollarama Inc. (TSE:DOL) increased by 7.6% to $43 billion from fiscal year 2021 to fiscal year 2022 whereas, comparable store sales also grew by 1.7%. This Canadian discount store has made it to the list of the 10 biggest discount store companies. Like Walmart Inc. (NYSE:WMT) Costco (NASDAQ:COST) and Dollar General Corporation (NYSE:DG), Dollarama is also seeing a huge influx of customers who want to shop in budget.

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