The discount retail sector is experiencing a significant upswing in 2025 and share prices in the sector are outperforming major stock indices. This growth is driven by trade-down behaviors among higher-income households — traditionally resilient consumers — indicating heightened consumer anxiety. Despite this momentum, rising operating costs remain a challenge for discount retailers, with selling, general, and administrative expenses outpacing revenue growth. The sector's future success will depend on disciplined navigation of these changing dynamics, including strategic pricing, efficient supply chain management and cost optimizations.
Sign up to receive all the latest insights from Ankura. Subscribe now
© Copyright 2025. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
