Discount Stores Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The discount stores market was valued at USD 567.74 Billion in 2024. The industry is expected to grow at a CAGR of 5.50% during the forecast period of 2025-2034. The demand for discount stores is expected to grow with the significant boom in online shopping, advancements in the retail industry and the ease of contactless payments. All these factors may assist the market in likely attaining a valuation of USD 969.78 Billion by 2034.

Global Discount Stores Market Report Summary

Market Size 2024

• USD Billion 567.74

Market Size 2034

• USD Billion 969.78
• CAGR 2025-2034
• 5.50%

CAGR 2025-2034- Market by Region

• Asia Pacific
• 6.2%

CAGR 2025-2034 - Market by Country

• India
• 6.3%

CAGR 2025-2034 - Market by Country

• China
• 6.1%

CAGR 2025-2034 - Market by Store Type

• Groceries
• 6.4%

Market Share by Country 2024

• Australia
• 1.9%

Discount Stores Market Growth

Retail Expansion and Discount Strategies Fuel Market Growth

The rising efforts placed by the retail industry on expanding the number of stores to cater to a broader range of customers are influencing the discount stores industry outlook. In March 2025, Five Below disclosed its plans of opening a whopping 150 more locations in this year. The ease of availability of health and wellness products along with the advantages of discount schemes will also favour the market trends. For instance, in June 2023, Indian chain of pharmacies owner MedPlus Health Services Ltd revealed that it would be selling 500 off-patent as well as and chronic medicines under its brand by offering a massive 50-80% discount.

Key Trends and Recent Developments

The global discount stores industry outlook will be driven by the proliferation of mobile commerce, the surge in expansion investments, the strong preference for contactless payments and the rapid rate of AI integration.

March 2025

Russian discount retail frontrunner Fix Price disclosed plans of opening several stores by 2025 as it was preparing an entry into the Serbian market. This marks the firm’s second attempt in establishing its presence in Europe, preceded by its operations in Latvia.

November 2024

Amazon introduced its low-cost online storefront comprising products like electronics, and apparel priced at under USD 20 with an aim to compete with other discount retailers who are increasingly encroaching on the e-commerce giant's turf. The new storefront can be accessed in Amazon’s shopping app and mobile website.

August 2024

Walmart disclosed that it was offering price cuts on over 7,200 items, spanning groceries to general merchandise. Apart from helping in bringing the prices down, Walmart said that it was working on getting more rollbacks to aid customers and members to save money.

March 2024

Aldi revealed the addition of 800 of its discount groceries in the United States as part of its five-year expansion plan as the firm looks to capitalize on the growing number of cost-conscious Americans and their focus on countering the rising rate of inflation in the country.

Growth of mobile commerce

The discount stores market share is likely to be driven by the significant advances in mobile commerce. Shopping on mobiles is easier and more convenient when compared to desktop shopping. Moreover, mobile app optimisation offers user-friendly experience to smartphone users, boosting mobile commerce sales. It has been reported that mobile commerce would account for 59% of the total retail eCommerce sales in 2025.

Increasing investment strategies

The rise in investments led by key players aimed at capacity expansions to attract more consumers will boost the discount stores market development. In February 2025, Loblaw disclosed its plans of opening 80 new grocery and pharmacy stores this year, of which 50 would be discount grocers as part of its USD 10 billion investment in the next five years. A large number of companies are also focusing on automation, driving significant investments in their supply chains.

Benefits of contactless payments

The growing popularity of contactless payments given their convenience and security will favour the discount stores industry growth. Reports suggest that contactless payments, as of 2023, recorded nearly 25% of all card transactions across the U.S. Contactless payments systems facilitate faster checkouts whilst reducing the time spent in lines, leading to their rising importance in busy shops or during peak hours.

Emergence of AI integration

The growing penetration of AI to render transformative advantages to retailers, such as enhanced customer engagement, operational efficiency, and data-driven decision-making will outline the discount stores market development. In May 2024, India-based Lussac International Private Ltd.’s division AskmeOffers introduced a state-of-the-art Chrome Extension deployed with machine learning & AI systems in line with the commitment towards enhancing the online shopping experience. Such instances of AI integration will favor the industry trends.

Discount Stores Market Trends

Generative AI Enhancements Drive Growth in the Market

The discount stores market value will witness significant growth during the forecast period impelled by the rising stream of tech innovations, including Chatbots to offer an improved shopping experience. In November 2024, Amazon disclosed the beta launch of its new generative AI-driven conversational shopping assistant Rufus in India to help consumers simplify their shopping experience while fulfilling their needs. AI-generated review highlights offer common themes to customers to help them in quickly understanding customer insights. The rise in the number of new generative AI-powered capabilities on the shopping portals to make shopping easier and more convenient will positively add to the market expansion.

Discount Stores Market Opportunities

Rising Grocery Inflation Fuels Growth of the Industry

The surging rate of global grocery inflation is an important factor for the expansion of the discount stores industry. As per the Economic Survey 2024-25, India's food inflation remained high at 8.8%, led by supply chain disruptions and adverse weather. The rising food and commodity prices are pushing the preference for discount stores, grocery stores, and convenience stores. The focus of discount grocers on adopting digital strategies for offering online ordering as well as delivery options for keeping up with the changing consumer habits. The introduction of mobile apps with personalized discounts and digital coupons for rendering a more convenient shopping experience will also impact the industry dynamics.

Discount Stores Market Restraints

The discount stores market outlook may be hindered by the high prices, increasing operating costs, crowding, and the intensifying competition on the web. The inconsistences in inventory and limited online presence are other challenges associated with the market. Discount stores prioritize affordability over variety, hence offer a narrower selection of products when compared to traditional retailers.

Discount Stores Industry Segmentation

The report titled “Discount Stores Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Store Type

• Groceries
• Household Goods
• Clothing
• Electronics
• Others

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Discount Stores Market Share

Groceries and Affordable Fashion Drive Discount Store Growth

As per the discount stores market reports, groceries are gaining significant ground due to their assistance in providing essential hygiene, food, and healthcare items as opposed to traditional grocery stores. In September 2024, Amazon introduced its new cheap new grocery portfolio with staples under USD 5. While the demand for clothing discount stores is growing with the robust emphasis on advertising great deals on good brands. The rising consumer preference for affordable fashion and fast fashion alternatives will also drive the segment growth.

The discount stores industry will attain traction through electronics resulting from the rising innovations and the need for lower prices on a diverse range of products. As per Circana research, the U.S. consumer tech spending will rise 1.8% in 2025 owing to higher acceptance for AI-enhanced PCs and large TVs. This surge in sales will favor the demand for electronics discount stores.

Discount Stores Market Regional Analysis

CAGR 2025-2034 - Market by

• Country
• India
• 6.3%
• China
• 6.1%
• Brazil
• 6.0%
• Saudi Arabia
• 5.8%
• Canada
• 5.7%
• USA
• UK
• 5.2%
• France
• Italy
• Japan
• Australia
• Mexico
• Germany
• 5.1%

Shifting Consumer Priorities Boost Discount Stores in the U.S. and Canada

The significantly rising food prices along with the shifting consumer priorities towards value-driven shopping will positively influence the discount stores market in North America. The U.S. and Canada are home to a large number of discount retailers who are constantly enhancing their ecommerce capabilities. For instance, in November 2024, Canada’s major grocery and pharmacy retailer Metro Inc. revealed the launch of 12 discount stores to expand its loyalty as well as digital offerings, following the completion of a six-year, USD 1 billion project aimed at supply chain modernization. The onset of the COVID-19 pandemic has also influenced the demand for discount department stores mainly in the U.S. retail market.

Value-Driven Shopping and AI Adoption Fuel Discount Store Growth in Asia Pacific

With the consumer spending increasingly gravitating towards value-focused channels, the discount stores market value in the Asia Pacific is likely to expand in the coming years. The swiftly growing middle-class population and their increasing purchasing power is driving the expansion of discount store chains in the region. Countries like Japan are widely deploying AI in supermarkets and convenience stores to facilitate pricing and other purposes. The rising manufacturing of affordable fashion and lifestyle products mainly in China is also offering several growth opportunities for the industry expansion. In June 2024, Amazon stated that it was gearing up to introduce a new section on its portal dedicated to low-priced fashion as well as lifestyle items directly shipped from China to the US consumers.

Competitive Landscape

Leading players in the discount stores market are pursuing strategic initiatives, such as investments, capacity expansions and partnerships to cater to the rising consumer requirements. These firms are also working on innovations to attract a larger market share.

Walmart

Founded in 1962 and headquartered in Arkansas in the United States, Walmart is a multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores. Walmart has also been recognized as a leader in philanthropy, sustainability, and employment opportunity.

Dollar General Corporation

Founded in 1939 and headquartered in Tennessee, United States, Dollar General Corporation is an American chain of discount stores. Recognized under the Fortune 500 companies, Dollar General has emerged as one of the most profitable stores in rural United States.

ALDI

Founded in 1946, with its headquarters in Essen and Mulheim, ALDI is a common company brand name of two German multinational family-owned discount supermarket chains. ALDI stores have grown popular as they display a variety of items at discount prices.

Costco Wholesale Corporation

Founded in 1983, Costco Wholesale Corporation is an American multinational corporation headquartered in Washington, operating a chain of membership-only big-box warehouse club retail stores. Costo offers low prices on a selection of nationally-branded and private-label products in a wide range of categories.

Other key players in the discount stores market report include Dollar Tree, Inc., Lidl US, LLC, Big Lots, Bargain Hunt, ben franklin, Bi-Mart, Target Corporations, TJ Maxx, and HomeGoods among others