LONDON, Nov 28 (Reuters) - The economic downturn provides an opportunity for discount grocers to extend their influence in European retailing and in particular make headway in the UK and France, a report said on Friday.
Verdict Research said discounters like privately-owned German groups Aldi and Lidl should raise as much finance as possible to aggressively expand in markets where they are under-represented.
"Now is the time for the likes of Aldi and Lidl to pounce in the UK," said analyst Daniel Lucht and co-author of the report.
Discounters currently account for an average of 16 percent of total grocery sales across the European Union, the report said, adding there were huge variations, with Germany on 43.8 percent and the UK on just 3.7 percent.
It said France, on 14.6 percent, was another opportunity for strong growth as the Loi Raffarin, which has tightly regulated retail space, is relaxed in January 2009. (Reporting by Mark Potter; Editing by Jon Loades-Carter)