Europe: Aldi's and Lidl's promotional goods are stacking
Usually, the in & out promotional goods in the iconic large metal baskets at Aldi and Lidl are often sold out quickly. At the moment, however, the baskets are overflowing with masses of remaining items from the non-food in&out items that are actually only available for a short time. Shoppers report that tills and entire aisles are sometimes full, both in Aldi stores.
At Aldi Süd, the “Wow Weeks” were promoted in its leaflets and website, during which promotional in&out goods that were left behind are sold for special prices between €1 and €10 (US$1,17 - US$11,70) in the store.
The reason: The corona pandemic has shaken up the planning of the discounters, reports the "Lebensmittelzeitung". According to a request of the industry journal at Aldi Süd, the company said: "The extraordinary circumstances of the Corona crisis present us with special challenges, as we plan our non-food campaigns well in advance." For example, supply chains were interrupted during the pandemic, this has delayed deliveries. Goods that otherwise come from China and other Asian countries came into the stores later. Since last year Aldi Süd also changed its approach regarding left over promotional goods. It started discounting most leftover promotional in&out goods after several weeks in its stores, in line with a long time Aldi Nord way of working. This approach is stocking space for new promos. Previously Aldi Süd, in line with Lidl, returned the promotional left-overs after maximum 6 weeks back to the central warehouses to redistribute.
An Aldi-Nord spokeswoman also explained to the “Lebensmittelzeitung”: “Due to the corona-related restrictions, particularly in the Asian economy, our postponements occurred in the second and third quarters." Aldi has put additional assortment products in the metal baskets in the meantime, when the planned promotional goods could not be delivered. Because the goods that were actually ordered were added on later action dates creating limited space to present goods properly. That is why the goods are currently piling up in the stores and will have enormous negative impact on the P&L of Aldi also this year to solve this issue.
And discounter competitor Lidl also seems to be struggling with the problem, but here the problem only becomes apparent at second glance, writes the “Lebensmittelzeitung”. Lidl redistributes its stocks via its central warehouses and sells the remaining stock in dedicated special (regional / store) sales. There are currently significantly more special sales dates than before the pandemic. In the next three weeks alone, nine special sales are planned, according to the "Lebensmittelzeitung" newspaper. Further Lidl uses it digital e-commerce platform more effectively for selling overstocks for promotions as well national as international. Here Lidl uses the advantage of the standardised European in&out promotional goods branding, packaging and multi languages.