Brutally cheap discount retail stores opening in Budapest – competitor to the “big ones”?

A new player has shaken up Budapest’s discount retail market: Brutál Diszkont, along with its sister brands Akciópont and Market Point, has been expanding rapidly across the capital in recent months.

Unlike traditional multinational chains, the company is carving out a niche with radically low prices and a direct import-based business model, aiming to take market share from the likes of Lidl, Aldi, and Penny.

Brutally cheap – but how?

Operated by Nagykerem Ltd., these retail stores don’t invest in expensive branding or customer experience. Their outlets resemble warehouses more than modern supermarkets – but the prices truly live up to the name “brutal”. Well-known detergents, shampoos, and cleaning products are often sold at just a fraction of their usual retail price. According to the company, there’s no trick involved: these are genuine branded products, purchased directly from European manufacturers in truckload quantities, cutting out wholesalers and distributors, writes Pénzcentrum.

Every product’s price is calculated based on a fixed margin, meaning that if the company secures a cheaper purchase price, customers benefit immediately. The chain also offers a price guarantee – if a shopper finds the same product cheaper elsewhere, Brutál Diszkont will refund double the price difference.

Small, fast, and local, with meeting new consumer needs

The arrival of Brutál Diszkont is no coincidence. Hungarian shopping habits have shifted dramatically in recent years. With high inflation and reduced purchasing power, traditional large weekly grocery trips are giving way to frequent, smaller, and faster shopping sessions. Major chains such as Tesco have already recognised this trend – its recently launched Premier format targets exactly this urban, price-conscious demographic.

In this context, Brutál Diszkont fits perfectly into what could be described as the “urban survival store” model. With long opening hours (from as early as 6 AM to as late as 11 PM), strategic city-centre locations, and ongoing promotions, the chain caters to those who want to shop quickly and cheaply on their way to or from work. However, product availability is not constant – as it depends on direct imports – so certain items may only be on shelves for a limited time.

Modest figures, but promising model

At present, the chain operates 15 retail stores across Budapest. While this is still a far cry from the hundreds of outlets run by multinational giants, the pace of growth is impressive. The company group’s estimated revenue reached around HUF 4 billion in 2024 – still tiny compared to Lidl’s HUF 1.3 trillion or Aldi’s HUF 518 billion, but already approaching the size of smaller local players such as G’Roby.

Could this be a real challenger?

Brutál Diszkont is not yet a serious threat to the big international discounters, but its flexible, locally driven strategy seems well-suited to today’s economic climate. Among price-sensitive and time-poor urban shoppers, the “quick and cheap” retail store format is gaining popularity. If the chain manages to expand sustainably – first across Budapest, then perhaps nationwide – it could secure a stable position in Hungary’s already crowded retail market.

The only remaining question is whether this “brutally cheap” business model can remain viable in the long term – or if the major players will once again reshape the field in response.

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