Quick Take — Italy: discount stores in trouble

In July, volumes in the large-scale retail sector grew more than turnover (sales by value: 0.5 per cent; volumes: 0.9 per cent). This is a significant difference as it signals the end of inflationary pressure: in the four weeks ending 19 July, the Circana Price Observatory recorded a change of -1 per cent, whilst the year-to-date figure remained just positive at 0.1 per cent.

Superstores performed poorly – in July alone – with a fall of 1.3 per cent.

In the year-to-date figures for 2026, discount stores maintained a market share of 20.2 per cent and recorded a 0.4 per cent increase in sales by value.

The annual figure therefore remains positive, but is significantly lower than the 2.1% for the packaged consumer goods sector as a whole. The channel is growing at a slower rate than the market and, as a result, is no longer able to gain market share at the pace observed in previous years…

I largely agree with Andrea Meneghini: discount stores are no longer ‘a novelty’ and need to reinvent themselves. And perhaps many customers are looking for a different, ‘higher-quality’ range.

The factors that have exacerbated Brexit

There is the ever-contentious issue of inflation, but on closer inspection, it becomes clear that leaving the EU has not led to greater equality within the country; it has slowed down the provision of healthcare services, worsened court proceedings and increased immigration from outside the EU, and consequently heightened racial tensions