Origins and Unique Model of Hard Discounters
The modern retail landscape is filled with unexpected turns, and one of the most fascinating is the rise of hard discounters. This retail format originated in post-war Germany, with chains like Aldi (founded in 1946) and Lidl (founded in 1973) operating under a radically different model than traditional supermarkets. Their approach focused on small stores, limited product selection, low prices, and an absolute obsession with efficiency.
Efficiency at its Core
The operational model of hard discounters is almost surgical. Every square meter and every second count. The logic is clear: fewer steps, less movement, lower cost. An emblematic example is the use of barcodes on multiple sides of product packaging, allowing cashiers to quickly scan items without having to rotate them. This simple detail increases checkout speed, reduces the need for staff, and boosts productivity.
Efficiency extends beyond checkout. Their supply chain processes, direct negotiations with suppliers, and minimization of unnecessary expenses enable them to free up resources for low prices and development of private brands. Initially a basic, price-focused format, hard discounters have evolved to offer premium lines, healthy products, and diverse options, all under the promise of “great value for money.”
Global Success and Market Impact
The success of this format has been undeniable. In most countries where they operate, hard discounters grow faster than traditional large chains. Recent data confirms this trend: in the UK, Lidl grew by 11% and Aldi by 4.7%. Together, they now account for nearly 20% of the market, a significant leap from a few years ago when they didn’t even represent 10%.
In continental Europe, the story is similar. The Schwarz Group (parent company of Lidl and Kaufland) leads the ranking with €167.2 billion in sales in 2023, surpassing even Carrefour and Tesco. Aldi follows closely with over €112 billion, establishing a German duopoly that sets the pace for European retail.
Spain experiences another interesting phenomenon. Mercadona, though not a pure hard discounter, has adopted many of their practices (efficiency, private brands, competitive pricing). Its market share reached 27.3% in 2025, while Lidl controls nearly 7% of the Spanish market, demonstrating that the low-cost formula and efficient processes remain highly appealing.
Mexico’s Unique Hard Discounter Story
Hard discounters in Mexico have a distinct history. They emerged as a response to cater to consumers in areas dominated by informal commerce. Stores like 3B and Neto started selling basic products at low prices in popular neighborhoods, directly competing with small shops and markets.
However, the landscape has changed dramatically in the last decade. Today, 3B, Neto, and Bara are growing faster than large traditional retailers. Second-quarter 2025 results prove this: 3B reported a 38.3% sales growth, while Bara grew by 28%. No other retail chain in Mexico came close to these rates.
Ambitious Aspirations and Strategic Questions
- How far can they grow in Mexico? The country has room for thousands of new units, but eventual saturation is inevitable.
- How will they maintain profitability? With increasing labor and inflationary pressures, their operational discipline will be tested.
- What happens if they expand northward? They will face different competitors and consumers.
- How much more should they invest in private-label product development? To succeed in new segments, they need more innovation in private brands, from organic to ready-to-eat convenience items.
- Will they deviate from their model or stay true to it? The fundamental question is whether the hard discount model can scale without losing its essence.
In both Europe and Mexico, hard discounters are no longer marginal players; they’re the growth engine in retail. Their trajectory, market impact, and influence on consumer habits must be closely monitored to see how far they can reach and whether their pursuit of efficiency will win over new segments.
