Aldi and Waitrose, which came in first and second place respectively, epitomise a trend which is seeing value retailers such as Aldi, Primark and B&M Bargains, and premium-end brands like Waitrose, Burberry and Harrods, dominate the leader board.
Fashion brands in particular, including Burberry and Net-A-Porter.com (fifth and 15th on the UK leaderboard), have been the engine for growth in the UK.
Anita Balchandani, head of retail and partner at OC&C Strategy Consultants, said: We’ve seen the majority of growth in the retail sector come from its polar extremes in terms of price position. Although at first glance these retailers have little in common, what they all share is a trait to adapt the quickest to what matters most to customers, create strong propositions that are well-rated by customers, and good, transparent value, regardless of their price position.”
It was found that while the average retailer operating in the UK grew by one per cent, the top retailers in OC&Cs rankings have seen growth of around 17 per cent over the same time span. This has been the case not only for homegrown brands like ASOS and AO.com (ninth and 14th place respectively) but also foreign retailers expanding on British soil, like Aldi.
Read more about the UK’s fast-growth companies and industries:
- The top ten fastest-growing manufacturing sectors
- Meet the 1,000 companies inspiring Britain in 2015
- The UK’s ten fastest-growing exports
At the top of the chain, German supermarket Aldi has grown revenues by 1.2bn per year since 2011 as a result of opening about 40 new stores in the UK every year.
Retailers are succeeding by giving customers the ability to shop on their own terms and reducing all points of friction in the shopping journey,” said Balchandani. “Smooth web experiences, the ability to shop across mobiles, tablets and desktop, or being able to choose from a range of convenient delivery or collection options, have been a great growth formula for many of the pureplay e-commerce successes like Amazon who internationally is amongst the fastest growing retailers.
“Were seeing a range of key customer trends – be they the growing importance of convenience, value, luxury and healthy and active lifestyles. Those retailers which grow will find that they do so by exposing their businesses to these tailwinds.
The 20 fastest-growing retailers in the UK:
- Aldi (UK & Ireland)
- Sports Direct
- John Lewis
- Home Bargains
- B&M Retail
- JD Sports
- The Range
- Dunelm Mill
It’s worth noting that UK retailers don’t feature in the ten fastest growing retailers in the West.