By Sebastian Rennack, Lebensmittel Zeitung
Discount Retail Chain Aldi Nord (privately owned) is increasing its pace of expansion and twenty-folded its advertising expenditure. Aldi in the Eastern European country is growing faster than Biedronka, Lidl and Netto.
Aldi Nord catches up in Poland. The market share of less than 1 percent is expected to increase significantly, and the number of new store openings is to triple from half a dozen in the past few years by 2022. To this end, Aldi has set up eight regional expansion offices since November 2019 and now wants to expand its presence nationally. In addition, the German discounter wants to become more present and get more customer awareness. In the first half of 2021, according to specialist media, Aldi increased its spending on traditional advertising media more than twenty-fold, from 590,000 euros (US$700,000) in the same period last year to 12.8 million euros (US$15.12 mio). This makes Aldi the fifth largest advertiser in the Polish food retail sector.
The country is one of the focus markets of the new European strategy of Aldi Nord and Süd, it is said in informed circles. The aim is to show the Aldi brand in all major European markets. This also includes Poland. The growth strategy in the Eastern European country is based on the "Spanish model". Spain was the first foreign market in which Aldi Nord had implemented a more intensive marketing strategy than traditionally usual.
At the same time, the discounter is constantly expanding its share of local products. According to Aldi's sustainability report, own private label brands accounted for 73.6%of the product range at the end of 2017, compared with 67.8% at the end of last year. Almost half of these are manufactured in the country, the company emphasizes. Aldi now has three regional partner labels: Produkt Polski (Polish product), Dziedzictwo Kulinarne (culinary heritage) and Jakość Tradycja (tradition with quality).
This increased national orientation in the assortment range should also be related to the fact that the Germany boss of Aldi Nord, Nicolás de Lope, who was country managing director (and former Lidl manager) in Poland in 2017, had issued the slogan "more brands". The country managers of the foreign companies now also have better ones Chances of asserting yourself against central decisions if you have good arguments.
The change in strategy seems to be bringing success. According to the latest data from the Warsaw Ministry of Finance, the discounter was able to increase net sales by around 17.6% on euro basis in the 2019 financial year, of which an estimated 13.1% came from existing space. Aldi Poland is growing significantly faster than market leaders Biedronka (5.8%), Lidl (6.9%) and Netto (2.2%) on a like-for-like basis. With a discounter share of over 30% in self-service retailing, the market is one of the most competitive in Europe.
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