A discounter is a store where you can buy everyday items cheaper than in a supermarket. There are several varieties of the format, the one thing they always have in common is low prices.
To keep the price of goods low, discounters save money on everything else. A small warehouse or its complete absence, a small assortment, narrow aisles between the racks, a minimum of staff – this is approximately how the average Ukrainian imagines a “low-price store”. Often this format is associated with clutter on the sales floor and queues at the checkout.
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The advertising budget of such networks is practically absent due to the economy. Therefore, their owners have to use all sorts of alternative ways to attract attention and be remembered by visitors. For example, did you know that a well-thought-out brand identity for stores can cut advertising costs many times over? Order the service corporate identity development of a chain of discount stores from the specialists of KOLORO branding agency.
What products do discounters emphasize?
It’s mostly groceries and household goods. Clothing, shoe, and accessory stores have also become popular recently.
A feature of discounters is the mandatory presence of goods of its own brand, the number of which in some networks reaches 80% of the entire range.
Read also: 10 retail trends you can’t ignore
Successful global discounters: branding examples
1. Walmart
U.S. discounter giant with offices outside the United States. In other markets, the company often goes by a different name: Walmex, Asda, Seiyu. To optimize its business, Walmart has recently ventured into online shopping.
Walmart’s blue color is associated with reliability and inspires confidence
The company’s slogan – “Save Money. Live better” – fully reflects its mission.
The logo, which has been updated six times during its existence, has always been in the form of the company’s name. Only the font and corporate colors were changed. The current logo, designed in 2008, has undergone the most significant changes in its history. First, the company’s name has reverted back to its original 1962 version and consists of one word (before that: Wal-Mart). Secondly, the schematic star symbol, which served as a hyphen between words, has turned into a full-fledged element of the logo and now looks more like a spark or a flash. The font has also changed and is now more rounded.
Thanks to a smart marketing strategy, Walmart has been at the top of the rankings of the biggest companies and most expensive global brands for years.
2. Aldi
The first Aldi store opened in Germany more than a hundred years ago. The retail chain is now successfully operating in Western and Central Europe as well as in the United States in a hard discounter format with very low prices. In order to save more money, Aldi has done away with window displays in its stores and minimized the range of products as much as possible.
Aldi discounter chain store
The company’s slogan: “The cheapest grocery store.” In 2017, Aldi updated its logo again as part of a rebranding exercise. The concept remained the same, the colors were retained, but in general the logo looked more modern.
The evolution of the Aldi logo over the last 70 years
The corporate identity duplicates the colors of the logo: calm blue background, white and blue lettering, accents of orange and red to contrast and attract attention.
The interior color scheme of the stores is very simple, in silver and black tones, not distracting from the products. Employees’ clothing, design of signs and cash desks are made in laconic shades of black and gray colors.
Developing a logo and slogan is a very important step in the process of creating a competitive company. To get the expected results, it is better to seek the help of professionals. Branding agency KOLORO will effectively cope with the task in a reasonable time, call!
3. Lidl
Another discounter hailing from Germany. It is now strengthening its position in the European market and is actively expanding in the USA and Australia.
A contrasting combination of colors is used to create a memorable logo. The combination of bright blue and yellow colors with red accent attracts attention and is quickly remembered by the customer.
One of the Lidl stores
Distinguishes itself from its closest competitors with a wider range of products. Notably, over the last year, Lidl has started to slowly move away from the low-price concept, with new stores looking more and more like regular supermarkets than hard discounters.
Lidl stores are decorated in blue and green colors. Bright yellow elements in the clothing of employees attract attention and are associated by customers with movement, energy, optimism, creating a positive impression of the company.
The slogan “The Real Price of Good Goods” has been modernized lately. For example, in commercials for English-speaking markets it sounds like “Big in quality. Lidl on price”. The name of the company “Lidl” sounds in this context as “middle”, so the slogan translates the new policy of departure from the discounter format: “High quality. Medium prices”.
4. Target
A distinctive feature of corporate design is the abundance of red color. It is believed that red symbolizes activity, inducement to action, stimulates spontaneous purchases. In addition, the red color confidently opposes the calm blue logo of Target’s closest competitor, Wal-Mart.
Target’s slogan: “Expect more. Pay less.”
Bright red is actively used in the company’s corporate identity and retail store design. Walls, pieces of equipment, signs, shelves, and fronts are all red. Subconsciously, such design evokes in visitors strong associations with activity, energy, encourages immediate action. Therefore, a white or silver background helps to dampen the excessive influence of red and avoid unnecessary aggression.
The logo in the form of a red and white target successfully plays off the name of the supermarket (“target” translates as “goal”). It is guaranteed to stand out and be memorable the first time you see it. The current version of the logo has been in use since 2006, but it does not differ much from its predecessors, except that the colors have become a little brighter and the inscription with the company’s name has completely disappeared. The conservatism of the management in this matter is understandable: why change what works well. After all, Target, which ranks at the top of the Fortune 500, already has consumer brand recognition at a very high level.
5. Bluefly.com.
The format of this discounter is an online store for designer clothing, accessories, and jewelry. It’s relatively young, but it’s growing rapidly, having gone from the US market to shipping orders worldwide in a dozen years. The reason for the growing popularity is the 40-70% discounts on luxury brands. Here you can find unique collections of brands that do not need additional advertising: Gucci, Prada, Dolce & Gabbana, Dior and others.
Bluefly.com’s slogan is “Obsessed with Fashion.”
The design of the site is intended to emphasize the premium nature of the brands, to enhance the feeling of elegance, luxury. Therefore, it is radically different from the above: no screaming appeals, bright colors, contrasting combinations. The decoration is in calm pastel colors, looks elegant and discreet. Periodically, the company updates its corporate colors and logo, but the overall style remains the same.
At the moment, the site’s design uses only light gray in addition to white. Neutral and distraction-free, it serves as an elegant frame for the haute couture items on display in the store. The logo has also become more refined and no longer includes a schematic image of a fly (the company name “Blue Fly” translates to “blue fly”).
Read also: How to rebrand your store and increase customer traffic
Ukrainian discounters
The format of “low-price stores” in Ukraine has great prospects and chances to capture a significant share of retail. The consumer, trying to save money, goes to the store with cheaper products, which contributes to the industry.
1. “ATB”
In 2017, discounter ATB became the leader among Ukrainian food retailers in terms of retail network development and number of stores.
ATB conveniencestore
More than a quarter of the assortment consists of own brand goods.
The company’s logo has not undergone significant changes since its foundation, so it is already well remembered by customers. It is very simple – the company name in large red letters on a blue and white background.
As a color scheme for the corporate identity and facade design, the company chose a win-win combination of three colors: dark blue, white and red. A similar combination can be seen in the logo of Pepsi and Bank of America. Blue evokes a sense of reliability, red encourages action, and white softens this slightly aggressive combination and adds the necessary balance.
On the facade of almost every store you can see information about current promotions and favorable price offers.
The interior design repeats the corporate colors: white floor and walls, dark blue equipment and staff uniforms emphasize the first impression. Signs announcing good deals and price tags of promotional items are decorated in red to attract attention.
2. TA DA!
Regional chain of home goods, which thanks to a successful rebranding was able to expand its audience and enter the all-Ukrainian market. In order to change and become modern, the company changed everything, starting with the name.
TA DA! – sounds catchy and energetic, not unlike the previous name of the network (KOOP Poltava). Company slogan: “Home Goods. Everyday.” Succinctly and accurately portrays the store concept to the consumer.
The new corporate identity is a combination of yellow and black, slightly diluted with white. Such a contrasting combination attracts attention from afar and is well remembered. Therefore, it is used in absolutely all elements of design: for outdoor advertising, in the design of facades, staff clothing, on company packages. Inside the store, the main part of the equipment, floor and walls are white or silver in color to avoid oversaturation and creating a sense of fatigue among customers.
The bright combination of yellow and black is an element of the new style of TA DA stores
The launch of the online store was an excellent solution, allowing us to form a new sales channel and expand our coverage beyond the region. And the development of funny characters – a dinosaur and a hippo – improved communication with the consumer and added positivity to the network’s image
3. Thrash!
The supermarket chain Thrash! – the first hard discounter on the Ukrainian market, founded by Fozzy Group. Prices are some of the lowest on the market, but to achieve this you have to cut costs on literally everything. So Thrash catches the consumer’s attention with a primitive method: a bright orange facade and large black lettering with the store’s name. Orange color, symbolizing openness, accessibility and friendliness, fully reflects the company’s philosophy. The color blue is also used for the interior decoration of the stores.
Unlike the aforementioned discounters, Thrash! no functioning corporate website with detailed information, only a page with the company logo and a list of addresses of retail stores.
Slogan: “Thrash! Crash prices.”
Clear positioning, affordable prices and thorough consumer research made the chain a success in less than a year.
Thrash supermarket chain store
The Company continues to actively work on the further development of the format. The list of product items in stores is reduced to the most essential, and the share of own-brand products is increased.
How to make a discounter in Ukraine successful and profitable?
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