Discounters such as Aldi and Lidl, who have reached saturation point in Germany, are looking to offer niche product groups, such as gluten free foods, and adding stationery, mobile telephone cards and travel services to attract the "modern" customer, the company said in its latest report.

Over the past year, KSA has worked with the forerunners in the grocery sector in France, Germany and the U.K., concluding while each of the markets is mature, the competitive landscape and consumer behaviors are very different so there is a huge challenge in exporting their propositions outside their own borders.

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