Discount Retail Chain Aldi Nord and Aldi Süd (both German family owned) are now using social media platform WhatsApp to communicate with their customers. Registered users will receive the digital leaflet with all offers of the following week via the short message service every Sunday. With the move, the companies are further expanding their presence in digital channels. Customers can also access the digital flyers via the retailers’ respective websites and customer apps. Since September, users of the Aldi Nord app can also receive early information on all non-food deals. In a special digital flyer, they can find out which items will be on offer at their store two weeks before the promotion date. This way, the discounter wants to simplify shopping planning for its customers. Retailers are looking for cost-effective and resource-saving ways to distribute advertising via digital platforms. However, for the time being, both Aldi companies do not plan to completely abandon printed handouts like competitor Rewe. As reported by Retail Optimiser, the Cologne-based supermarket operator plans to stop printing leaflets from July 2023 with a view to climate and environment. However, due to the risk of possible sales losses, this has been seen quite critical by its peers in the industry. Connected with just a few clicks Customers who want to be regularly informed about offers from their local Aldi via WhatsApp can activate the service in just a few steps. They open the link on the respective website with their smartphone and confirm data protection regulations. After entering their postcode, they can select their preferred store nearby. By clicking on ‘Start’ they receive a welcome e-mail. From then on, the discounter will inform them regularly about weekly special offers and worthwhile news. Registration is even easier if future users scan the corresponding QR code on the respective Aldi website. To stop digital delivery of the leaflet, users just need to text ‘stop’ in the chat. See here fore more: Aldi Nord and Süd distribute leaflets via WhatsApp - Retail Optimiser (retail-optimiser.de) #smartdiscount #aldi #germany #whatsapp #leaflet #marketing #communication #drc #discount #retail #consulting #discountretail #discountretailconsulting #socialimedia

Discount Retail Chain Aldi UK customers will be able to visit the Podback website to either order recycling bags, which can be filled and taken to one of 6,500 Collect-plus drop off points, or register for kerbside collections if they live in a participating local authority area. The scheme aims to help consumers recycle their used coffee, tea and hot chocolate pods. Podback was launched last year and is said to be the first coffee pod recycling service of its kind in the UK. It was set up by Nestle and Jacobs Douwe Egberts UK. Richard Gorman, plastics and packaging director at Aldi, said: “We’re pleased to be joining Podback on this journey, especially as the first supermarket member. “It’s important to us that we help customers do the right thing once our hot drink pods have been used, and we look forward to seeing how our partnership with Podback progresses.” Rick Hindley, executive director at Podback, said: “We are delighted to welcome Aldi as the first supermarket brand member of Podback. This marks a key milestone for the programme and we are looking forward to working with Aldi to promote our service to their customers. We hope other retailers will follow Aldi’s lead and offer their own-brand pod customers the opportunity to recycle through Podback.” See here for more: Aldi joins Podback scheme to recycle used hot drink pods – PrintBox DIrect #smartdiscount #aldi #uk #pods #coffee #collection #jde #nestle #saralee #jacobs #podback #tea #chocolate #sustainability #drc #discount #retail #consulting #discountretail #discountretailconsulting #partnership

Discount Retail Chain Lidl (owned by the German Schwarz Group) dethroned its sister supermarket chain Kaufland in the Czech Republic in 2019. A year later the Schwarz Group's discount store also became the market leader in the Hungaria, Romania and Slovakia. In the relatively newly entered markets of Serbia and Lithuania, Lidl is already number three in the national rankings of food retailers and is quickly gaining new shares, while reaching the break-even point. Lidl is no longer a discount store, although in its communication it cleverly uses the image of a store with low prices. Today, however, it is climbing up, filling a niche of modern supermarkets that is largely undeveloped in the region. Why? Admittedly, there is a diversity of customer groups and purchasing missions between formats with a limited assortment and low prices and operators offering added value and a full assortment. But these boundaries are becoming increasingly blurred. It is the discounters that solicit areas developed by other retailers and attract their customers. Lidl, Aldi and company are evolving towards supermarkets. That is, they expand the assortment, including domestic brands, while adding specialized/niche products for more affluent customer segments. The growing need to save over the last time naturally pushes consumers towards a cheap retailer. On Lidl's home market, big discounters are fighting a fierce battle with supermarket giants, i.e. Edeka and Rewe. It is this channel and these two brands that increase their share in the domestic food market every year, also in times of pandemic. A great offer of fresh products, most of them offered in service counters, an ecological, sustainable and "free" range [lactose, sugar, gluten... etc.], as well as strong local legitimacy through well-organized short supply chains and joint management of stores are the distinguishing features of these chains, which discounters only try to copy very successfully. Among the top ten retail brands in 2021, Edeka and Rewe supermarkets came first, and in the top ten there were five more discount brands. So what is the secret of Lidl's success in Central and Eastern Europe? Looking at the market structure in Central and Eastern Europe, Lidl can be described as a "fox in a hen house". In most markets, there is no significant discount competitor. In 2020. Lidl generated net revenue of €16.9 billion in the region, with a pre-tax profit of €0.97 billion, corresponding to an EBT margin of 5.7%. The next largest discount operator was the Polish Biedronka with net revenues of EUR 13.8 billion, gross profit of EUR 0.8 billion and a margin of 5.9%. Far behind is Penny Market with revenues of EUR 3.6 billion and a margin of 2.3% (data based on company reports presented by the Ministry of Finance). In addition, in Central and Eastern Europe there are no regional large competitors in the form of supermarkets as in Germany. Billa, Lithuania's Maxima, Spar Austria and Spar South-Africa, as well as various Ahold Delhaize activities, bring in an average of less than €1.5 billion in revenue per country. This means that Lidl can fill a market niche and position itself as a supermarket. And that's exactly what happens. Every year, the discount store increases its offer by several percent. The list of well-known international and domestic brands attracts customers, including those who previously shopped "in one place" in a larger format. It also means that Lidl reaches more affluent customer segments than the original target group of discounters. Let the best illustration be the strategies of entering the last two markets: Lithuania and Serbia. While in Lithuania Lidl positioned itself with the slogan "quality for all" and quantified the entire assortment for 3100 SKUs, in Serbia (with a purchasing power equal to one third of the Baltic countries) it positioned itself as a hard discount store with an assortment without fireworks, i.e. 1800 SKUs. Source: Sebastian Rennack, Aletos Advisory and DRC Associate See here for more: Why Lidl is growing Part 1 FELIETON - Discount stores - Trade - Information portal Handelextra.pl #smartdiscount #lidl #expansion #marketleader #easteurope #centraleurope #eu #europe #marketentry #drc #discount #retail #consulting #discountretail #discountretailconsulting #sebastianrennack #Aletosadvisory

No classic checkouts, sliding prices, no national brands and only 2,000 product references. The French discount chain Leader Price is making a comeback as LP, with a radically new concept. Leader Price is back in a new guise: Casino, the owner of the brand, is testing the LP pilot store in Normanville, France, in one of the last Leader Price supermarkets. In 2020, Casino sold 545 of their discount stores and three warehouses to rival Aldi. The group was left with only a few stores and the rights to the brand. With high inflation driving the French into the arms of discounters, Casino is nonetheless once again developing a network of discount supermarkets: “There is a place to be won in hard-discount in France,” project manager Thibault Zitoun tells Mieux Vivre, with a nod to the imminent arrival of the Russian hard-discounter Mere. That arrival didn’t happen in the end, but it did expose the opportunities. The LP supermarket in Normanville covers about 650 sqm and boasts prices that are unmatched or at least equal to those of its competitors. To achieve this, it had to cut costs as much as possible. This means no leaflets or promotions, hardly any national brands (apart from Coca-Cola and Ferrero brands) and an assortment of only 2,000 items. The limited range not only means that less storage space is needed, but also that there are fewer stock-outs, which results in lost sales and fewer shelves to restock. Cardboard boxes Another innovative feature is the sliding price scale. Customers can buy products by the piece, by the box or even by the whole pallet – the prices go down with the volume. For example, a kilo of sugar cubes costs 83 cents, for a six-kilo box you pay 79 cents per kilo and for a 660-kilo pallet the price per kilo is 75 cents. So B2B can go there as well. The system seems to be working, since ten months after the opening of the prototype store, 10% of its turnover comes from the sale of boxes, reports Le Monde. In any case, all the products are displayed on pallets, as is the case at Mere. There are no traditional checkouts either: customers scan their purchases with a scanner or their smartphone, leave them in their – larger than normal – trolley at the checkout and simply transfer to their car. Although it is far from certain that all the elements of this test shop will be retained. The concept is evaluated each month by a consumer panel and ultimately it is the remaining Leader Price franchisees who choose whether to go ahead with the LP concept. However, at least a dozen branches are reportedly already planned. Source: www.retaildetail.eu #lp #leaderprice #casino #france #comeback #aldi #smartdiscount #discount #drc #discountretail #discountretailconsulting #retail #consulting

Zellers, a once-popular, low-cost department store in Canada, was forced to shut its doors 10 years ago. It will soon make a comeback, with hopes that shoppers' nostalgia for the brand will revive it. Any Zellers location was easy to spot: a big, bold red logo with the department store's name marked the entrance. Inside, the lowest price was "the law", as its tagline once suggested, with aisles full of merchandise selling everything from clothing to sports equipment. Most Zellers stores closed in 2013, save for a few. By 2020, all Zellers locations were shuttered. The company was born in 1928, right before the Great Depression, with four locations in Ontario. By 1999, Zellers had grown to 350 stores in Canada. The growth of Walmart and online shopping, however, had hurt Zellers, and by 2011, the brand was forced to sell its remaining 189 locations to Target, another American chain that was looking to set up shop north of the border. Still, decades after its peak, many Canadians remember Zellers fondly. Some said they hoped the return of Zellers would mean the return of competitive prices on everyday goods, particularly at a time when high inflation has pinched the wallets of many. Others wondered if Zellers would bring back fixtures of their younger years, like the cherished teddy bear Zeddy, which was used to promote the store's toy department in the 1980s before becoming its official mascot. Nostalgia is a powerful tool for igniting positive emotions of the past that are strong enough to get buy-in from consumers, according to marketing and psychology experts. Nostalgia provides an anchor for people, a spokesman said. Does nostalgia marketing work and are sentimental feelings enough to make people spend their money on a product or at a store? David Soberman, a marketing professor at the University of Toronto, said a few companies have been successful in bringing back a discontinued product using nostalgia. The Volkswagen Beetle a car that was once discontinued in Germany in 1978 due to its outdated technology, but that was successfully reincarnated for years as the 'New Beetle' in the late 1990s because of the sentimentality people attached to it as a figure of 1960s hippie culture. Also, the comeback of the iconic Ford Mustang was a big success. But for a department store like Zellers, nostalgia can be a tougher sell, argued Mr Soberman. "Ten years ago, Zellers wasn't viable," he said, adding the store fell short in the face of Walmart's expansion and the surge of online shopping giant Amazon. Walmart thrived, Mr Soberman said, because its enormous size gave it the ability to offer consumers a high volume of merchandise at a competitively low price. Meanwhile, Zellers stores began looking "rundown" and "outdated" in comparison by the time of their closure, he said. Department stores on the whole are also facing a significant decline in North America, largely due to the rise of online shopping. In 2011, there were 8,600 department store locations in the US, compared to 6,297 in 2020. Mr Soberman said products often need a "unique selling point" to succeed, and he is unsure if Zellers can deliver that just yet. He added its revival may only resonate with people who are old enough to have fond memories of the brand. Target's move into old Zellers locations in Canada has been called a "massive failure" after the American company pulled out from the Canadian market in less than two years - partly due to distribution issues that often left shelves barren and that offered products at a higher price than what they were being sold for in the US. Target's exit was met by mixed reaction, but some took it as a sign that US-based companies don't understand Canadian shoppers. Source: BBC News (ampproject.org) #zellers #canada #departmentstore #discountdepartmentstore #comeback #nostalgia #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy

Discount Retail Chain Lidl Serbia (owned by the German Schwarz Group) uses its retail network strength in Europe, Lidl Serbia exported domestic products worth 10 million euros, which stimulated the economy and directly contributed to Serbia's GDP. At the same time, Lidl significantly increased the share of domestic items in the assortment of its stores in Serbia. 'Raw materials such as wheat or sugar are easy to export, as there is a high demand for them. However, our goal is to use the strength of our Lidl retail network and export the final product, the value of which is higher because it includes the work of several related industries in Serbia. In this way, it contributes to the Serbian GDP', emphasized Nikola Balaban, executive director of procurement of Lidl Serbia. Balaban adds that Serbian food is increasingly in demand outside the borders of our country, but only on the condition that it is above average and of constant quality, from the first to the last palette. The export of products, namely flatbreads, Adriatic cheese, frozen croissants, yellow - yellow pastries, chicken and turkey pate and toasted bread, in the value of 10 million euros was achieved thanks to the partnership relations between Lidl and domestic suppliers. Namely, Lidl's partners have guaranteed placement of goods and can plan production, which opens up space for investments in terms of capacity and standards, which are important for reaching European quality standards. A real example of this is flatbread production. As always, we want to build long-term partnership relationships, so from our supplier who has plants in Subotica, Niš and Novi Sad, we export flatbread to Bulgaria, Romania, Poland, and soon to Germany, Italy, Spain, worth five million euros, said Balaban. Also, Lidl Serbia ensured that nearly 100 Serbian producers received the IFS certificate, which is an important prerequisite for exporting to Europe, both through the network of this retail chain and beyond. In addition to exporting them, on the shelves of this discount chain in Serbia there is an increasing number of products of domestic origin. Last year, Lidl introduced a new brand of its products called With love, domestic. There are about 80 products exclusively from domestic suppliers. From milk and dairy products, through dried meat products, to homemade cakes, these products are easily recognizable by their design, a traditional Serbian connection. See here for more: InStore #smartdiscount #lidl #schwarzgroup #serbia #export #suppliers #growth #potential #europe #drc #discountretail #discount #retail #discountretailconsulting #consulting

Aldi UK has revealed that the discount supermarket has ‘big plans’ to extend its existing click and collect initiative in 2023. Aldi is gearing up for its biggest Christmas on record, as the cost-of-living crisis has prompted shoppers to switch to cheaper discount supermarkets, says Giles Hurley, CEO. In September, the German discounter overtook Morrisons to be crowned the UK’s fourth biggest supermarket, which then welcomed an additional 1.65 million customers in the 12 weeks leading up to 2 October. In January, Aldi ditched Deliveroo deliveries and is now concentrating on its own click-and-collect service, which is currently running in 200 of its UK stores. Hurley says “watch this space” when it comes to rolling out click and collect further. “Online grocery spending might have slowed, but it’s still 11% of the food market, it’s still going to be important,” he said. Hurley believes that Aldi’s success is largely down to its smaller stores and grocery ranges, as while 90% of what it sells is own-brand, it can generally sell groceries for less. “We might be in the ‘Big Four’, but we will never be part of that club, we’re focused on our model,” he said. “We are committed to not being beaten on price.” The discounter, which will have 980 stores by the end of this year, has fallen short of its target of having 1,000 stores by the end of 2022. Hurley blames the delay on lockdowns, labour shortages, planning red tape and interference from rivals, rather than a lack of ambition. “We can take a long-term view and we believe long-term profitability is linked to growth and scale,” he added. “Our market share and growth is very much determined by us having the lowest food prices in the UK.” As Aldi gained more of the UK market share amid the cost-of-living crisis, Tesco and Sainsbury’s launched price-matching schemes in a bid to compete with the lower prices. www.grocerygazette.co.uk/2022/12/14/aldi-click-and-collect-in-2023/ #aldi #uk #clickandcollect #marketshare #discounters #growth #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy

Belgian market leader Colruyt (Colruyt Group) saw its turnover increase in the past six months only due to price increases: volumes are falling. The cash & carry discounter cannot fully pass on the sharply increased costs to the consumer, which halves the profit. Lowest price guarantee In the first half of the broken financial year 2022/23, Colruyt Group saw its turnover increase by 5.7%, but this is only due to price increases, which compensate for the lower volumes. At the same time, the company's operating costs increase significantly as a result of higher energy tariffs, transport costs and wage indexation – the biggest impact of which has yet to follow. Because Colruyt sticks to a lowest price guarantee in its main store formula, the retailer cannot fully pass on these increased costs to the customers, and that weighs on the margins. Operating profit fell to 123 million euros (2.3% of turnover), net profit fell to 89 million euros (1.7% of turnover). That's about a halving, and a lot worse than what analysts had expected. No market share gain The discounter does not gain market share in this period of fierce price competition: the market share in Belgium of the supermarket formulas Colruyt Lowest Prices, OKay and Spar together remained virtually stable at 30.9%. At Colruyt, turnover increased by 2.6%, at OKay, Bio-Planet and Cru, turnover fell by 2.6%. Wholesale sales increased by only 1.3%, indicating that spar neighbourhood supermarkets are also experiencing strong volume declines. Online sales – mainly via the Collect&Go shopping service – now represent 7% of retail turnover. In France, turnover increased by 10.7%. In non-food, sales increased by 22.1%, mainly due to the expansion of bicycle shop chain Bike Republic. Foodservice grew by 38.5%: volumes did increase here. Gloomy outlook In short, Colruyt is having a very difficult time in these exceptional times and improvement is not immediately in sight: "The coming months will also remain very challenging, with a gloomy macro-economic outlook that will further influence the spending pattern of consumers," says CEO Jef Colruyt. The retailer expects the result to fall on an annual basis in percentage terms in the same order as in the first half of the financial year. #colruyt #belgium #lowestprice #growth #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #aldi #belgium #brussels #compactstore #expansion #consulting #consultancy

Retail Chain Carrefour is finalising the European launch of its hard discount cash-and-carry brand Atacadão, already available in Brazil and Morocco. The president of the French distribution group, Alexandre Bompard, recently confirmed plans to test the new store model in France from autumn of 2023. According to French media reports, the first Atacadão store could open in Seine-Saint-Denis, where an existing Carrefour hypermarket would be transferred into the cash-and-carry format imported from Brazil. Created by Alcides Parizotto in 1962 in Brazil, the wholesale format was acquired by Carrefour in 2007 for €825 million. Subsequently, the French group introduced it in Argentina, where it later became Carrefour Maxxi; Colombia, where the stores were sold in 2012 to Cencosud; and Morocco, where there are three stores operating in Tangier, Fez and Oujda currently. In Brazil, there are 283 Atacadão physical and online stores in 170 cities, open seven days a week, and employing around 60,000 people. Presenting itself as a halfway between a hypermarket and a wholesaler, Atacadão is aimed at both individual and professional customers, offering 10-15% lower prices than standard stores. Low Prices All Year Atacadão does not have promotions but rather offers low prices all year long and, the more you buy, the cheaper the price you will pay. The points of sale are in fact large warehouses, with goods sold directly in boxes, on pallets or on metal shelves. The shops are organised in a practical and functional way to facilitate the search for products and the circulation with large volumes of goods. The product offer is limited and comprises around 10,000 food and non-food references, mainly private labels. A hypermarket generally offers around 40,000 products. Atacadão is Carrefour Brasil's ‘jewel in the crown’, representing half of the French group's sales in Brazil. Carrefour is planning to invest around €150 million in the expansion of Atacadão, aiming to reach 470 stores in Brazil and for growth in France. See here for more: Carrefour To Launch Atacadão Format In Europe | ESM Magazine #smartdiscount #atacadao #carrefour #europe #brazil #morocco #growth #expansion #drc #discount #retail #consulting #discountretail #discountretailconsulting

Largest Russian supermarket chain Magnit plans to continue the rapid roll-out of discount stores next year as shoppers across the country turn to cut-price options amid a recession that is further squeezing living standards. Magnit reached the opening of 700 My Price discount stores in 63 subjects in Russia. Most openings appeared in the Volga district with 50 stores. My Price continues to show strong results: the growth of comparable sales in the third quarter exceeded 50% compared to the same period in 2021, and the average check increased by almost 20% and already exceeded the indicator of convenience stores in November. "We have opened 45 stores every month this year and plan to maintain a similar pace of expansion in 2023. We consider discounters to be a large segment of our business in the future," deputy CEO Ruslan Ismailov said on Thursday, as Magnit announced the opening of its 700th discount store. "Magnit operates the My Price format just from mid-2020 and is distinguished by a small retail space (100 - 250 sq m) and an assortment of about 2,000 items, while the investment in My Price discount stores is 40% lower than the comparable size of the Magnit convenience store, which provides an attractive level of return on investment", according to the Deputy CEO Ruslan Ismailov at Magnit. "We continue to scale the format and increase its attractiveness for customers, including through the range. High operational efficiency allows us to translate savings into prices on the shelf and create the most interesting price offers", said Ismailov. Inflation has surged in Russia this year and real wages have fallen as the economy suffers from the fallout of heavy Western sanctions. Real wages, which are adjusted for inflation, fell 1.4% year-on-year in September, according to the latest official statistics - the latest economic hardship for Russian households, who have seen almost a decade of falling living standards. Economic Pressure Amid the economic pressure, discount chains selling everything from food and fashion to takeaway coffee and household goods have taken off across the country. Magnit said sales in its discount format - which operates under the 'My Price' brand - were growing strongly, up 50% on a like-for-like basis in the third quarter compared to the same period of 2021. The chain said it was both opening new locations and reformatting existing stores to tap into the growing demand for low-cost goods. A majority of the discount stores were in small towns and cities with a population of under 100,000, added Magnit. Also, the share of own brands is growing and is now 20%. The company plans to increase it to 50% and in the near future launch a separate line of private labels for discounters. Now prices in discounters are on average 15% lower than for similar positions in convenience stores. Source: www.retail.ru/news/magnit-otkryl-700-diskaunterov-moya-tsena-15-dekabrya-2022-223820/ and www.esmmagazine.com/retail/russias-magnit-races-to-open-discount-stores-as-living-standards-slump-228632?preview=true #myprice #magnit #growth #discounters #russia #marketshare #inflation #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy

Russian Retail Chain Magnit (MCX listed) plans to continue the rapid roll-out of discount stores next year as shoppers across the country turn to cut-price options amid a recession that is further squeezing living standards. "We have opened 45 stores every month this year and plan to maintain a similar pace of expansion in 2023. We consider discounters to be a large segment of our business in the future," deputy CEO Ruslan Ismailov said on Thursday, as Magnit announced the opening of its 700th discount store. Inflation has surged in Russia this year and real wages have fallen as the economy suffers from the fallout of what the Kremlin calls a 'special military operation' in Ukraine and heavy Western sanctions. Real wages, which are adjusted for inflation, fell 1.4% year-on-year in September, according to the latest official statistics - the latest economic hardship for Russian households, who have seen almost a decade of falling living standards. Economic Pressure Amid the economic pressure, discount chains selling everything from food and fashion to takeaway coffee and household goods have taken off across the country. Magnit said sales in its discount format, which operates under the 'My Price' brand, were growing strongly, up 50% on a like-for-like basis in the third quarter compared to the same period of 2021. The chain said it was both opening new locations and reformatting existing stores to tap into the growing demand for low-cost goods. A majority of the discount stores were in small towns and cities with a population of under 100,000, it added. See here for more: Russia's Magnit Races To Open Discount Stores As Living Standards Slump | ESM Magazine #smartdiscount #magnit #stores #russia #expansion #growth #entrylevel #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Non-food Retail Chain Dollar General (NYSE stock listed) is, er several months of cost pressures and disruption, rounding out 2022 with a focus on expanding digital capabilities, adding to their store count, and differentiating their customer experience. In 2023, the variety store chain will set approximately 3,170 projects in motion, including 1,050 new store openings across the U.S. With nearly 19,000 stores located within 5 miles of about 75% of the population, Dollar General already has a significant physical presence across the retail landscape, reaching shoppers in places where other stores oftentimes cannot. Dollar General also plans to open their first international stores in Mexico some time in 2023. "This growth underscores our belief that our value and convenience proposition resonates with a broad spectrum of customers and will continue to be important to all customers in this challenging economic environment," said Jeffery Owen, Dollar General’s CEO, in the retailer's Q3 earnings call. Furthermore, 80% of these new stores and almost all the relocations will be in a larger store format, making space for planned innovations and developments, including more cooler counter space and room for fresh produce. Fast Tracking Frictionless Customer Experiences Looking forwards, Dollar General will move full steam ahead on a number of digital initiatives designed to complement their expansive physical footprint. According to Owen, the company’s efforts remain focused on creating a “digital front porch” for customers, which involves driving engagement through digital properties such as the mobile app, which now has 4.5 million monthly active users. Through their ongoing partnership with DoorDash, Dollar General will aim to bulk up their ability to offer same-day delivery in an hour or less. Currently, this offering is available in just over 13,000 stores across the country. “Overall, our strategy consists of building a digital ecosystem specifically tailored to provide our customers with an even more convenient, frictionless and personalized shopping experience. And we are pleased with the growing engagement we are seeing across our digital properties,” said Owen. One of the main components of this digital strategy is to fast track the installation and implementation of self-checkout stations. According to senior leadership on the call, self-checkout was made available in around 10,500 stores (with the retailer on track to bring this figure to 11,000 by the end of the year) at the end of the third quarter. The hope is to build these capabilities out further in 2023. “We believe this full self-checkout option could further enhance our convenience proposition, while enabling store teams to dedicate even more time to serving customers. We are currently testing this layout in approximately 250 stores and are pleased with the early customer and associate response,” Owen said in the earnings call. As innovation becomes a priority across the company, there’s also an increased drive towards data strategies and emerging technologies. Specifically, Dollar General says they will be rolling out new digital tools to field agents, including data-driven inventory management, designed to free up retail leaders and store associates and reduce workloads across the enterprise. More pOpshelf Store Experiences and Additional Fresh Produce Dollar General opened 23 new pOpshelf locations in Q3, bringing the total number to 103 stores across nine states. Looking ahead, leaders say the retailer plans to almost double the number of pOpshelf stores to about 300 by the end of 2023 – keeping them on track to open 1000 stores by the end of 2025. pOpshelf stores have a playful, open design and mostly sell affordable products ($5 or less) including seasonal and home décor, health and beauty, and party goods. Commenting on the plans, Owen said: “pOpshelf aims to engage customers by offering a fun, affordable and differentiated treasure hunt experience delivered through continually refreshed merchandise, a differentiated in-store experience and exceptional value with the vast majority of our items priced at $5 or less. We recently celebrated the 2-year anniversary of the first pOpshelf store, along with our 100th store opening. And we are pleased to see the concept continuing to resonate with customers.” Moving from non-consumable to consumables, Dollar General will continue to execute their shift to self-distribution of frozen goods through the DG Fresh initiative, upping their number of coolers and bolstering delivery capabilities for fresh and refrigerated options. Dollar General completed the initial rollout of DG Fresh across their entire chain in 2021. “Going forward, we expect to realize additional benefits from DG Fresh, as we continue to optimize our network, further leverage our scale, deliver an even wider product selection and build on our multiyear track record of growth in cooler doors and associated sales. And while produce is not included in our initial rollout, we continue to believe that DG Fresh provides a potential path forward to expanding our produce offering to more than 10,000 stores over time,” Owen said. Dollar General Third Quarter Earnings Net sales increased 11.1% to $US9.5 billion in the third quarter of 2022 compared to $8.5 billion in the third quarter of 2021, largely driven by positive sales contributions from new stores and growth in same-store sales Same-store sales increased 6.8% compared to the third quarter of 2021, driven primarily by an increase in average transaction amount, as well as a modest increase in customer traffic. Q3 gross profit as a percentage of net sales was 30.5% compared to 30.8% in the third quarter of 2021, a decrease of 27 basis points. This gross profit rate decrease was primarily attributable to an increased LIFO provision, which was driven higher by product costs; a greater proportion of sales coming from the consumables category, which generally has a lower gross profit rate than other product categories; and increases in distribution costs, markdowns, inventory shrink and damages; partially offset by higher inventory markups. See here for more: Dollar General Eyes International Expansion, Fast Tracks Frictionless Customer Experience and Boosts Fresh Produce Capabilities | RIS News #smartdiscount #dollargeneral #usa #expansion #international #growth #fresh #produce #frictionless #drc #discount #retail #consulting #discountretail #discountretailconsulting