German discount chain TEDi is set to open up to ten stores in Belgium later this year, Belgian media report.
The chain, whose name is an abbreviation of 'Top Euro Discount', sells a wide range of inexpensive non-food items such as stationery, DIY material, personal hygiene products, and toys, often for the meagre price of €1. Most of its goods are manufactured in China.
Founded in 2004, the chain currently employs 26,000 people and comprises more than 2,750 stores in 11 countries, including Italy, Poland, Hungary, and Spain, as well as Germany. It plans to open another 2,300 stores over the next few years and is set to expand its presence to France, as well as Belgium, in the coming months.
Market experts believe that TEDi's rapid planned expansion is a consequence of the declining purchasing power of many Europeans, which in turn is largely caused by soaring energy and food prices.
Related News
- Series of low-cost stores to open near the Belgian border
- Russian supermarket closes doors in Belgium after just four months
"Because of high inflation, there is momentum for such stores," Stefan Van Rompaey of RetailDetail, a market analysis firm, explained to Het Nieuwsblad.
It is also highly likely that TEDi was further motivated to expand to Belgium after one of its potential rivals, Russian discount store MERE, closed its operations in Belgium earlier this year.
La Dernière Heure expects that the chain's low prices will precipitate "very strong competition" between TEDi and Action, a rival discount store. The same newspaper also predicts that TEDi's expansion to Belgium will likely "put local and small shops at risk" due to their inability to compete with the chain's low prices.
