Discount Retail Chain Aldi USA (German family owned) is scaling up rapidly around the US. The German discount chain, famed for its low prices, is the country's fastest-growing grocer for the third year running, the real-estate-services company Jones Lang Lasalle said. Last year Aldi gained a million new customers and saw sales at its existing stores rise by double digits, the company said in September. And it's not just low-income customers looking for bargains. Aldi said at a media event in September that it has seen a rise in middle-income shoppers, which it defines as households earning between $50,000 and $100,000 a year, as well as high-income customers, reported Reuters. "Right now especially, everybody's shopping for value," said Suzy Monford, an exec at the retail-tech company Focal Systems who's held executive and management roles at major grocery chains. US food and drink prices have soared 13.5% this year as of August, data from the Bureau of Labor Statistics shows. Aldi almost always has the lowest prices for core products like bread, milk, and eggs, Monford said. Scott Patton, Aldi's vice president of national buying, said in September that its fruit and vegetable prices are between 20% and 40% lower than at competitors, Reuters reported. So how did Aldi get so cheap? It's down to what Patton called "thousands of strategic, intentional decisions" to keep prices low. Analysts, experts, and an Aldi superfan broke down the strategy that helped the store win over middle-income America. Aldi declined to make any employees available to interview for this piece. Private-label pros You won't find many of your favorite brands in Aldi. It calls itself a "private-label trailblazer" and its own-brand products make up more than 90% of the items it sells. That's a much bigger proportion than rivals like Costco, Walmart, and Kroger, according to the consumer-data company Numerator. Aimee Becker, a senior vice president of strategic advisory at Daymon, a company that helps businesses create private brands, told Insider that white-label brands had shaken off their reputation as subpar replacements for well-known ones as customers focus more on value and become increasingly brand agnostic. Aldi has touted that as a key to its low prices. The company's US website says that its own-label products are cheaper, because they don't have "the hidden costs associated with the national brands, such as marketing and advertising." Creating its own products also gives the store better control over supply chain and packaging, Shannon Vissers, an analyst at Merchant Maverick, a business-product-review site, told Insider. "For example, Aldi's chips don't have the extra puff of air that fills up name-brand chip bags, so they're able to fit more bags on their shelves." Monford said that Aldi is able to negotiate deals with "some of the best suppliers" to make its private-label products, because its scale and the fact that it offers a limited number of brands in each product category mean it can order in bulk. Nils Brandes, the co-author of the book "Bare Essentials: The Aldi Success Story," told Insider that Aldi ensures that the quality of its brand products are "at least as good as the quality of the commercial brands." The company has said that one in three of its nationally distributed Aldi-exclusive branded products, excluding produce, have won awards. Sarah Campbell, a self-proclaimed Aldi superfan and a teacher from New Jersey who runs the TikTok account @aldiallthetime, has been shopping at the chain for around five years. Campbell said the vast majority of products she buys from Aldi are from its private label. Her favorite products include its coffee creamer, flavored pretzels, pita chips, and peanut-butter cups. The company's frozen chicken, known by fans as Aldi's "red bag chicken," is a "must-try," she said. A 'treasure hunt' for shoppers Aldi sells rotating limited-time items, known as Aldi Finds in the US, which are added each week. They're available for a much shorter time than similar products at other retailers typically just two weeks in US stores and aren't restocked when they sell out. The products can range from food, housewares, clothes, and seasonal items to "unexpected" things like gardening equipment and pet accessories. On a visit to a UK Aldi store, Insider spotted dog car seats, CBD candles, and $200, or about $231, lawn mowers in the section. "They are using that variety as the hook," Monford said, likening it to a "treasure hunt." Campbell used that term to describe browsing Aldi Finds, too. "When we go shopping, we're foraging, we're hunting and gathering," Monford added. "We want a little surprise and delight, and they do a very good job with that." "And the fact that they are all 'limited-time only' items that won't be restocked makes them more enticing to customers," Vissers said. She added that Aldi gets a "great return" on these products because they're typically suppliers' overstock items that are sold at a discount. "It's a pretty smart business model." Aldi Finds items now account for around 20% of Aldi's sales globally, Brandes said. Campbell said she thinks the loyalty of Aldi shoppers is partially driven by the Aldi Finds. "I love to go there and look for the new stuff that wasn't there last week," she said, adding that it's something she's seen people connect over online. "People share, you know, 'I tried this and this was really great,' or 'I tried this,' or 'I bought this.' People like to show what they found at Aldi that week." Items she's bought include a mattress, a countertop ice machine, and an espresso machine. An outdoor firepit was her favorite high-end purchase, she said. Small stores for 'just-in-time' shopping Aldi is not overwhelmingly large. It typically has compact 22,000-square-feet stores, 12,000 square feet of which are used as the sales floor, according to an Aldi document from 2018. Walmart, in comparison, has four different types of stores, with an average size of 148,000 square feet, although that also includes backroom offices and storage. Smaller properties are cheaper to buy and maintain, and Aldi has said that its store layout enables "quick and easy shopping." "Their size is one of their core strengths," Monford said, pointing out that the stores are still big enough for a full weekly shop. By offering just a couple of brands for each product type, "they've really curated the assortment for their shoppers, which makes the shopping experience easier if you've chosen to shop there," Becker said. She said that Aldi sells fewer than 2,000 different products in total. Aldi's has said that it only sells around 130 fruit and vegetable products at any given time. Becker said that over the past decade, more customers had switched from "pantry loading" stocking up with large weekly shops to more frequent "just-in-time" shopping. Smaller stores are much more attractive to shoppers who only want to pick up a few items and don't want to be overwhelmed with choices, she said. Display-ready packaging saves on wages Most grocery stores remove their products from the packaging that they're shipped and stored in when they display them on their shelves; Aldi doesn't. The chain largely sells its products in what it calls display-ready cases the outer cardboard sleeves products are shipped in that are stacked straight onto the shelves without being removed. Aldi has said this is to save money on the labor required to restock shelves. Monford said this system of one-touch stocking is "extremely efficient." "All they have to do is pop out the top of the box and they can slide an entire case of yogurt onto the shelf and it's stocked in seconds," she said. Monford says that this means that the stores can largely have just-in-time inventory and don't need huge backrooms stocked full of inventory, another cost-saving measure. Monford added that consumers "don't mind" that products aren't taken out of their boxes because they're shopping at Aldi for value. "It doesn't bother me at all," Campbell said. "It's a genius way to save time." She added that she'd spotted customers use the empty crates to take items home rather than pay for plastic bags, which Aldi charges for. Monford said that Aldi's focus on low costs means even the layout of its stores maximize efficiency. "Every bit of that square footage is engineered based on needing to produce a certain sales per square foot, at a certain gross margin per square foot, with a certain labor efficiency baked into it," she said. Monford said that the way Aldi operated its stores was the "fastest, most efficient" in retail and required fewer staff than other supermarkets. As well as using shipping packaging, everything from "that building itself, the flow of the store, the size of the shelving, the depth of the shelving, the height of the shelving" is also designed to help with fast stocking using fewer workers, she said. Campbell said the Aldi stores near her generally had just four or five aisles. They're easier to navigate than other grocery stores because there's less choice, she said. DIY carts and no specialized services Other measures Aldi takes to save on costs include getting customers to pack their own bags, rather than taking up staff time, and charging customers for plastic bags. It saves money on labor by using a rental-cart system, common in Europe, but unusual in the US to incentivize customers to return their own carts by using a quarter to unlock one and getting it back when they return it. Aldi doesn't have services seen in some other stores, like delis and fish counters, which can use a lot of floor space and often require specialized staff rather than general workers who can switch between stations, Monford and Gautham Vadakkepatt, a retail professor at the George Mason University School of Business in Virginia, told Insider. It also doesn't provide what it calls "nonessential" services like banking and pharmacies. Vadakkepatt said Aldi's stores have fewer employees and shorter hours than at other chains. Its nine stores in Detroit, for example, are open from 9 a.m. to 8 p.m. Walmart's stores around the city are open for six hours longer each day. Aldi has said it also prints multiple barcodes on its products for faster scanning at checkout and doesn't play music so it doesn't have to pay for licensing fees. As Aldi continues to scale up, its strategy looks unlikely to change, meaning more and more Americans will be shopping for value at the rapidly-growing chain. See here for more: https://www-businessinsider-com.cdn.ampproject.org/c/s/www.businessinsider.com/aldis-us-popularity-middle-income-inflation-cheap-prices-costs-stores-2022-10?amp

If 2020 has rewarded all supermarket retailers with that +8.9% (inflation at +0.7%) due to the pandemic from Covid and the impossibility of choosing its stores, 2022 will see one growth of the market value of +5.8% for the increase in prices (inflation in large -scale distribution at 5.7%). A situation that has never occurred in the last twenty years. Inflation increases and above all it enjoys the discount In 2022 the promotions are clearly decreasing while the discount random went from a market share of 17.5% in 2019 to 20.6% at the end of 2022, an increase of more than 3 points in four years. In 2022 it seems to have downloaded the increase in prices on the consumer, a fact due to the image of convenience that has always distinguished it, contrary to the large-scale distribution in this way increases the margin while Esselunga and the supermarket other retailers must leave part of the margin on the field for calm down prices and increase in suppliers' lists. The 2022 gap between volume sales (+0.1%) and value sales (5.8%) releases a scissor of 5.7 points. The increase in the 2022 closing prices equal to 5.8%, inflate inflation. The only channel where volumes continue to grow is that of the discount (+2.9%). The e-commerce after the glories of Covid marks the pace. According to IRI, consumers resisted by financing the increases in supermarkets and discount stores until the end of August 2022, but on the return from holidays they entered the trading down, that is, they bought less in volume. If we observe the inflation produced for the increase in prices, we realize that the discount stores distance all the other supermarket channels with a +14.1% since the beginning of the year. Even the home specialists who started with a negative figure at the beginning of 2022 give their contribution to inflation with +4.8%. As we said at the beginning, these data comfort the thesis that the discount has increased the prices in full, without trying to mitigate the increase in suppliers' lists and, indeed, increasing their margins, which however we will read in the first months of 2023, seen who do not make budget half-yearly. As we pointed out, e-commerce marks the step after scoring +132% in 2020 thanks to the pandemic. The same happens for home deliveries that had recorded in 2020 +120% and for the retreat to sales point, +281% in 2020. Today e-commerce is at +4.1%, home delivery to 4.7% and the pdv withdrawal at +0.5%. The categories most involved by the increase in prices. Above all, it affects PET Care, a sector exploited by many elderly people who have a reason for life, the increase, if compared to other product sectors, appears sometimes unjustified, given the different use of raw materials and worked. The promotional lever is reduced to all sales channels, except in the Hon Line. The reduction of promotions pushes the inflation of the average price, which remains higher than the basic prices. The cutting of the promotions mainly concerns the premium products in favor of the mainstream ones and the highest discount brands, up to 50% cut. It significantly increases the weight of the first prices in large-scale distribution channels. Curiously the brand of the distributor, MDD, grows in all the channels of the large-scale distribution, while it does not grow in the same proportions in the discount store (today its share is 59.6%) for greater entrances of national and international brands in the assortments. IRI also reports about IDM, brand industry, which this year increased the launches of new products in the large-scale distribution. In conclusion: promotions decrease, increases the number of sales channels by the consumer, increases the search for convenience in channels and in the cart. Discounters once again proves to have dynamics and objectives very different from the supermarkets and show their success. See here for more: https://www.alimentando.info/il-discount-si-avvantaggia-dellinflazione-e-scarica-sul-consumatore-laumento-dei-listini-con-piu-margini-rispetto-alla-gdo/

Traditional brands and retailers are overstocked on clothing, home goods, electronics and other merchandise. In July, they were sitting on US$713 billion in inventory, according to the latest data from the Census Bureau. That's a prime opportunity for "off-price" retailers such as TJX (TJX), the parent of TJ Maxx, Marshalls and HomeGoods, as well as Ross (ROST), Burlington (BURL) and Ollie's Bargain Outlet (OLLI). These chains have flexible buying models and are able to scoop up unwanted merchandise from suppliers at steep discounts to their initial wholesale price. These retail chains may not survive a recession Unlike brands and stores that lock in their inventory six months to a year in advance, TJX and other off-price chains buy surplus merchandise to sell it right away. They also capitalize on orders that have been canceled or when companies manufacture too many items. And if a designer changes the style or color of a dress, for example, off-price stores are happy to take it and sell it on the cheap. If the price is right, these companies will also buy some merchandise and store it away for future seasons, a practice known as packaway. By buying goods cheap and controlling costs with limited advertising budgets, off-price stores can sell designer names and mid-range brands anywhere from 20% to 60% below regular retailers' prices. Companies and analysts say the current inventory pileup across retail is the ideal environment for off-price chains. The inventories of Nike (NKE), Gap (GPS), Kohl's (KSS), Target (TGT) and other companies have ballooned from a year ago. "We effectively have a few seasons landing in the marketplace at the same time," Nike CEO John Donahoe said on a call with analysts last month. Factory closures last year and in 2020 delayed shipments, as did widespread container ship shortages and supply chain backlogs. Inflation also has pinched shoppers' pockets, leading them to pass on discretionary items. Companies now are aggressively marking down their excess goods to stimulate customer demand. They're also packing away some goods to try to sell them in future seasons, diverting more merchandise to their own outlet stores and canceling orders from suppliers. But those strategies won't be enough to clear out the glut. And the beneficiaries of this deluge will be off-price chains. "This will all waterflow over into them," said Brett Rose, the CEO of wholesale distributor United National Consumer Suppliers, which works with stores and brands. Rose's company is shipping 40% more volume to off-price chains from the same time a year ago. "We are seeing extraordinary off-price buying opportunities in the marketplace," TJX CEO Ernie Herrman said in August. Ollie's Bargain Outlet, a closeout chain with more than 400 stores offering housewares, flooring and outdoor goods, is finding "opportunities like we have not seen for a long time," CEO John Swygert said last month. "Canceled orders, excess inventory and supply chain disruptions have led to a broad assortment of products being available," he said. See here for more: https://amp-cnn-com.cdn.ampproject.org/c/s/amp.cnn.com/cnn/2022/10/15/business/tj-maxx-marshalls-ross/index.html

Discount Retail Chain Dia Spain (owned by LetterOne) has reached net sales of 3.27 billion euros during the first nine months of its fiscal year, which represents an increase of 4.1% compared to the same period of the previous year, despite the fact that the network of stores is It has seen reduced by 3.3%. On the other hand, at the global level, the group has sold 5.5 billion euros, 12.6% more than in the previous year, thus confirming the company's entry into a new acceleration period towards the growth announced in the month of August. Gross sales under teaching have increased 2.4% during the period analyzed. Likewise, Portugal records a 1.1% decrease in its net sales, with a reduction in the 6.2% store network; While Argentina maintains a good behavior (between January and September the effect of greater sale for inflation is 20.7%) with an increase in the 5.9%store park. Brazil, meanwhile, has registered a growth of net sales of 11.7% despite the reduction of the number of stores by 18%. Until September, Like-For-Like comparable sales have been positive in all markets, with a strong improvement in Spain and Argentina (5.9% and 3.7%, respectively, highlighting 12.8% of Spain in the third quarter of the year) strengthening its change of stage and good performance in Brazil and Portugal ( +7.1% and +2.3%, respectively). Store transformation As explained by the company, growth is based on its value proposition for the client, fully deployed in Spain and Argentina. In this sense, since the beginning of the transformation process, in Spain 1,452 stores have already been remodeled and 44 openings have been carried out, which represents 78% of proximity stores, of which 69% are managed by franchisees. Of the 5,720 stores of the group at the close of the third quarter of the year, the company has 2,068 stores that operate under the new model and represent 53.5% of the proximity network. By countries, Spain has 1,496 stores operating under the new model; Argentina has 460, and Portugal 112. Since the beginning of the transformation, in Spain 1,452 stores have already been remodeled and 44 openings have been carried out, which represents 78% of proximity stores, of which 69% are managed by franchisees. On the other hand, the number of tickets is still increasing, with a 6.6% growth in the first nine months of the year globally, compared to the reduction of 1.3% of the amount of the average basket. In the third quarter of the year, the number of tickets has grown 8.4%. In addition, at the national level, between January and September, the weight of the own brand in the basket has grown to 51.8%, compared to 47.7% of the same period of the previous year. “In the last quarter of the year we will continue advancing in our road map. We trust the direction of our business model, because the increase in the number of tickets and the weight of the day brand puts that our essence, proximity, is the strategic lever also adequate also in an environment like the current one, ”he explains The CEO of the Dia Group, Martin Tolcachir, who clarifies that the focus of the new phase is to accelerate the growth of the company that will be reflected in the results. “The teams are already working on the progress made in this process of redirection of the business with a renewed strategy that does not lose sight of our essence, proximity, and our purpose: to be closer every day so that we all have the quality we deserve to our scope, ”concludes the manager. See here for more: https://www.revistainforetail.com/noticiadet/dia-espana-aumenta-las-ventas-un-41/396fd6593d701b00c133982a36ea2c4b

It is increasingly frequent to see in the neighborhoods of Luanda proximity discount stores, which in this phase of the national economy seek to gain ground and market in zones where the open market is the king of low prices. Discount price stores like Arreiou and Bem Me want (both belong to Mega Cash & Carry) very similar concepts provide more quality and a fixed variety of products. The Arreiou, whose name was chosen because it means very low prices, presents itself as the first Hard Discount in Angola, which is a very low-priced operation for food products, by combining simple stores and own private label brands. By the way, it is with this promise of low prices that customers go to these stores, but in fact, then they come across prices above those that the open market charge them, which in some cases ranges from 50 kz to 300 kz more. "The formal store is better because if the product has a problem we can still return or exchange for another," admits Baptista Escrácia, while shopping at the Arreiou, in the low of Luanda. In a round of expansion it was possible to find this price difference. A 1.2 kg rijail chicken cost 1,668 kz in a formal store, while on the street it cost 618 kz less. Already a liter of full oil cost 1,490 kz in a store, 440 kz than on the street. That's why Amadeu Makala, another client in the Arreiou store said that what attracts him to a service is his legality, that is, "it is localizable and here we can demand our rights without fear." This client said he has had unpleasant situations with market employees, because they do not feel obligated to provide a quality service. But price variation occurs even in stores of the same chain. If in one Arreiou store the toilet paper packs costs 290 kz, in another store it costs 250 kz, a difference of 40 kz. See here for more: https://expansao.co.ao/angola/interior/pequenas-superficies-forcam-entrada-em-territorio-monopolizado-por-cantinas-103820.html

Discount Retail Chain Penny (owned by the German REWE Group) has benefited for years from being more innovative than the rest of the discount sector. But the competitors have woken up. And with the "Markthalle" concept Penny threaten to get bogged down in Cologne. You probably didn't even notice that, but at the beginning of October Penny got a new managing director and in a previous interview with the REWE online magazine "One" he was not only to be seen in a picture with his predecessor, the two even smiling with their hands shaken! This is truly a tremendous new event for the German discount. At least nobody is used to the fact that the previous number 1 at a discounter, will suddenly be recalled after it has long since fallen out of favor in the top corporate days because they were intended to change. But Penny has always been special in German food retail, especially since the REWE subsidiary noticed ten years ago that it would probably not be long to continue the business model as before. Insider tactics: innovation And you probably have to be grateful that the red-spot Aldi and Lidl challenger was not renamed "Billo" (or the like) before a decade because: “Penny was the dirty discounter for many. That is why we initially discussed the possibility of a name change to make a complete restart”, mentioned the previous boss Stefan Magel. This was quite successful in many ways, because Penny dared to pursue a tactic neglected in the discount retail sector: innovation. “We weren't brave enough for a long time. But that has changed. Today we try things out and keep making changes that competitors take up later", says Magel and has right, at least related to the past. Penny renovated his appearance, dared to become supermarket early, positioned its own private label brand(s) new, put out of the mass, outstanding concept stores in surprising designs, scan & Go and markets that adapted to the location-instead of them to cover a standardized concept for giant areas. A clear alarm sign It is all the more incomprehensible that some mistakes that others have made years ago seems to make up: with the "Markthalle" concept, which is supposed to make the penny variety more visible and that special offers thematically sorted into range of range shelves. Wherever there is plenty of space for it, it looks pretty good. The new penny boss Stefan Görgens also knows that when he admits that "no all-encompassing answer for smaller stores has yet been found. Which make up a not so small part of the Penny store network, especially in large cities-and still be expanded into a "market hall", even if they were more suitable as a "booth". The sales development of the redesigned markets is "good overall", says Magel in this spring to the specialist press, but vary greatly and lie "between minus 10 and plus 30 percent compared to the old concept". Actually, this would have to be perceived as a clear alarm in Cologne, because you have obviously developed a concept that is perceived very, very differently by customers. Some swear by the new design and understand the guided customer grouping and routing in the store immediately, others not at all. Eternal supplementary purchase? It goes without saying that you cannot always please everyone, but with an approach that is very loved and very hated at the same time, it should be difficult to reach the wide mass. Penny has to do exactly that in order not to be perceived as an eternal supplementary purchase. You can no longer rely on the other discounters one step ahead of Cologne. Aldi and Lidl have long since noticed that they themselves have to be innovative to meet the demands of their customers: be it with vegan ranges, organic food in association with quality or modern city stores. Penny may be more agile to implement new things. But the others have the financial power to change something in the market. For the current crisis, it has been prepared for declining sales due to increasing energy and personnel costs, according to Cologne, and possibly also the reduction of the basket purchase of the discount customers. Nevertheless, Penny has to face several major challenges in the future: The discounter, at least in larger cities, must not miss digitization. The cooperation with Wolt for the delivery of app purchases is at least a start. Can it be a little bit fresher? At the same time, you have to concentrate on old virtues of stationary trade, and that would include, for example, to me: not to bring the impression that the remains of the mother REWE are primarily unloaded in the fruit and vegetable department in terms of quality and freshness have nothing to do with their own supermarkets. Exactly this insight often arises from the "first-class freshness" that Penny claims for itself. It will be the highest time that the focus of lighthouse projects such as the sustainability market and initiatives opened in Berlin Spandau, such as the well-intentioned "funding penny", is again on what the majority of stationary shops could benefit and a good start to it: to stop, to stop to continue to be booked everywhere. See here for more: https://www.supermarktblog.com/2022/10/20/zur-zukunftsstrategie-bei-penny-hoert-auf-euch-einzubuchten/

Discount Retail Chain Lidl GB (owned by the German Schwarz Group) has become the first supermarket in the UK to offer customers access to an on-shelf smart refill machine. The compact machines will be located on-shelf in the store’s laundry detergent section. They will take up space equivalent to 66 standard own-private label brand 'Formil' single-use bottles but have the potential of filling over 245 individual pouches, increasing capacity by almost 300%. Customers can pick up the pouch via the machine’s automated, touchscreen experience, choose their favourite detergent and follow the on-screen instructions. Lidl said the “innovative closed-fill” technology incorporated into the pouch cap allows customers to fill up with the cap still on, enabling faster filling while eliminating the chance of mess and spills. The private label 'Formil' pouches contain a special chip that allows the machine to distinguish between new and reused refill pouches, so the customer gets their saving of 20p after their first use. The grocer said the refill solution offers customers the cheapest wash, allows them to save 59g of plastic per refill, and the small size of the machine optimises shelf space and the detergent transported in bulk packaging makes logistics more efficient. “We are incredibly proud of this latest innovation, which will enable our customers to save money and reduce their plastic consumption,” Lidl CSR manager, Mark Newbold said. “We were the first UK supermarket to introduce smart laundry detergent refill stations and now we’re the first to introduce this next generation design. “It’s our strong belief that good quality and value should go together. We are committed to providing our customers with cost saving solutions that can help their wallets and the planet.” The trial will feature in Lidl’s Swadlincote, Lichfield and Kingswinford stores. This builds on an initial 6-month pilot of a larger, standing refill machine at the Kingswinford store, which resulted in positive customer feedback. See here for more: https://www.retailgazette.co.uk/blog/2022/10/lidl-to-trial-on-shelf-smart-refills-to-help-customers-save-money/

Discount Retail Chain Aldi UK & Ireland (German family owned) is set to reclaim the position of highest-paying supermarket from Lidl based on entry-level rates for store workers. From 1 January, starting hourly pay for Aldi store workers will increase from £11.95 (US$11.95) to £12.45 (US$14.4) within the M25 and from £10.50 (US$12.1) to £11 (US$12.7) elsewhere in the country. It makes Aldi the first supermarket to pay store workers no less than £11 (US$12.7) an hour. Aldi said today it would also increase entry-level pay for logistics workers to a minimum £10.90 (US$12.6) an hour, matching the national real living wage, set by the Living Wage Foundation. Lidl and Aldi have been swapping places as the highest-paying supermarket based on starting rates this year, as inflation intensifies competition for labour. The discounters are among a number of supermarkets to have announced two rises earlier in 2022. Direct competitor Lidl’s latest rise, effective from 1 October, took its national rate to £10.90 (US$12.6), beating Aldi’s current £10.50 (US$12.1). In London the two are currently matched at £11.95 (US$13.8). Lidl’s latest rates apply for both store and warehouse workers. Aldi UK & Ireland CEO Giles Hurley hinted in late September that Lidl’s higher rate for store workers nationally could soon be beaten again, when he promised Aldi would review pay once more before the end of the year. Aldi’s rates rise depending on length of service. From 1 January, longer-serving staff will receive £12.75 (US$14.7) an hour within the M25 and £11.90 (US$13.7) an hour elsewhere in the country. The supermarket said about 26,000 staff would benefit from the latest increase, which took its investment in pay in the last 12 months to £81m (US$93.5m). The new minimum rates are 15% higher than a year ago. Along with Co-op, Aldi is also one of the few remaining major grocers to offer paid breaks, which it says are worth £871 (US$1,005) a year to the average store worker. “Just as we promise Aldi customers that we will always offer the lowest grocery prices in Britain, we are committed to being the highest-paying supermarket for our colleagues,” said Hurley. “We are incredibly proud of every single member of Team Aldi, and are pleased to become the first UK supermarket to pay a minimum of £11 (US$12.7) per hour to all store assistants, exceeding the Living Wage Foundation’s recommended real living wage.” Aldi was named Employer of the Year in the 2022 Grocer Gold awards. It has more 40,000 staff and 970 stores across the UK, and is set to have created 6,000 new jobs in 2022 with its expansion plans. The business recently said it was looking for 100 area managers, with annual salaries starting from £44,000 (US$50,780) and rising to £81,000 (US$93,480) by the fifth year. See here for more: https://www.thegrocer.co.uk/aldi/aldi-set-to-reclaim-highest-paying-supermarket-title-from-lidl/672959.article?utm_source=Daily%20News%20(The%20Grocer)&utm_medium=email&utm_campaign=2022-10-28&c=&cid=DM1038936&bid=2070490480

Anyone who buys products from a private label in the supermarket has spent as much money on it at discounter #Aldi as at service supermarket #AlbertHeijn. That is the conclusion of the independent dutch #consumentenbond, who only looked at the prices of more than a hundred 'essential basic private label products' in the fourteen main retailers in the Netherlands. People who don't mind taking their groceries from the bottom shelves are on average half cheaper than when they buy premium A-brands. That is a bigger difference than four years ago, when, according to the 'consumentenbond', it was 40 percent cheaper. For the research, only the prices of A-brands were compared to those of the own or so-called Private Label brands. These are mainly brands that are sold exclusively at one supermarket chain and are marketed as the cheaper benchmark variant of the A-brand. On average you save half by buying those products. "But the saving can be much greater per product. With washing and cleaning products, care products, coffee and soft drinks, the saving is often more than 70 percent," says the 'consumentenbond'. According to the 'consumentbond', supermarket chain Dirk is the cheapest with basic private brands. "It is striking that discounter Lidl and Aldi only score average when it comes to the lowest priced products, not comparing quality and ingredients." Aldi is at the same level as Albert Heijn. Spar is the most expensive in this research. See here for more: https://www.nu.nl/economie/6232039/aldi-huismerk-is-even-duur-als-dat-van-albert-heijn.html

Discount Retail Chain Lidl Italia (owned by the German Schwarz Group), the GDO leader chain with over 700 stores throughout Italy, today presented the project for the construction of its new logistics pole in Assemini, in the province of Cagliari. The structure, which will be built thanks to an investment in the area of ​​over 70 million euros (US$70mio), will host the first Lidl warehouse in Sardinia and the twelfth in Italy. A strategic plan of great importance which, in addition to generating a significant induced in Sardinia, will contribute to the creation of 140 new jobs. This important project confirms, once again, the company's commitment to the country through a clear sign of trust and optimism towards the future. The structure under construction The construction of the Assemini logistics center was born from the need of Lidl Italia to support the continuous expansion on the Sardinian territory, in which it is currently present with 21 stores and a team of about 400 employees. The new warehouse, which will be completed in 2024, will allow the chain to optimize its distribution efficiency, with a consequent positive implication in terms of customer service. The new logistics center will extend on a total covered area of ​​over 37,000 square meters, will be equipped with a 1,100 kW photovoltaic panel and will be powered by energy from 100% from renewable sources. This structure will also allow the company to identify a new logistical structure and to shorten the distances from its points of sale, with a decrease in the average of the km covered by the goods and a consequent reduction in the environmental impact. A sustainable development strategy to which another important objective will also contribute that Lidl has set himself, namely to achieve the decarbonisation of transport by 2030. During the press conference Roberto Eretta, CEO of Lidl Italia sales, commented: “This important project brings with it a significant implication also for the territory. Many of the companies we are collaborating with for its realization, in fact, are Sardinian. Thanks to them and the profitable collaboration with the Provincial Industrial Consortium of Cagliari (Cacip) and with the local administration, the works are proceeding quickly. " Investments and economic impact According to the research "Lidl's contribution to the Italian system", conducted by SDA Bocconi School of Management, in 2020 Lidl Italia generated overall impacts (between direct, indirect and induced relapses) on the GDP of the Sardinia Region for about € 110 million, even at 21.0% of the total value made by the main GDO players operating in the area. The study also states that the company generates 2,800 jobs in Sardinia (between direct, indirect and induced workers), equal to 9.2% of the employment produced by the sector in the region. A positive impact that is destined to grow: in the three-year period 2022-2024 Lidl Italia will invest 1.5 billion euros (US$ 1.5Bn) on the national territory for the opening of 150 new stores and for the enhancement of the logistics network, in order to make the supply of even more functional goods. This investment will represent a first step towards achieving an important objective of the development of the sales network which will touch 1,000 stores by 2030. From the employment point of view, moreover, what announced will produce a significant expansion of the staff, with the creation of everything The national territory of over 6,000 new jobs by 2024. See here for more: https://www.gdonews.it/2022/10/25/lidl-investe-70-milioni-di-euro-in-un-nuovo-centro-logistico-ad-assemini-ca/

Discount non-food Retail Chain Woolworth is developing as fast as no other department store in Germany. Woolworth started operating in 2010 from 158 discount stores, it currently have over 500 stores in German downtown, shopping centers and specialist stores. We are now planning to start in Poland. Woolworth enters Poland Woolworth is developing dynamically and in 2023 we plan the first opening of stores in Poland. In difficult times for German retail trade Woolworth has proved that the discount stores are doing well, if you know how to do it. Woolworth is a trader and lives on sale from conviction. 'We never forget how important for our customers are low prices and a wide range of products' Woolworth says. What locations does Woolworth look for? Location for new Woolworth stores is currently underway. What is the German discount look for? - new or existing real estate - locations in parks and shopping centers, in frequently frequented pedestrian traffic zones and near commercial places in city centers (preferred top locations), district centers - preferred surfaces on the ground floor with a rectangular horizontal throw in the case of two-storey surfaces, necessary escalators with the elevator - commercial area: 800 - 1200 m² (preferably on one level) - Additional area: 100-200m² - the width of the front site at least 15 meters - truck supply zone - as much as possible exposure to external sales directly in front of the premises - Location: convenient access, enough parking spaces, connection with local public transport. Who will direct the Woolworth network in Poland? Woolworth Polska sp.z o.o. It is based in Katowice at 11 Listopada 11. The company's management is made up of: Maciej Cwikla, Oliver Penner and Lennart Wehrmeier. What does Woolworth sell? Woolworth stores offer, among others Textiles, home furnishings, electronics, decorative articles, toys and stationery. Assortiment is about 6,000 position, in line with the assortment size of another successful European discount non-food retail chain Action. See here for more: https://www.dlahandlu.pl/nonfood/niemiecki-woolworth-w-polsce-pierwsze-sklepy-juz-w-2023-r,112473.html?utm_source=newsletter&utm_medium=email&utm_campaign=dlahandlu.pl

Portugal's second-largest retailer Jerónimo Martins has posted a 14% rise in third-quarter net profit, as soaring inflation drove sales higher, and the company warned of an uncertain outlook for prices. Jerónimo Martins netted €157 million (US$157.97 million) between July and September. Chief executive Pedro Soares dos Santos warned that "with two months until year-end, the geopolitical instability and the supply chain constraints resulting from the pandemic make the outlook on food, energy, and fuel prices very uncertain". As the company tries to contain prices that have soared since Russia's invasion of Ukraine on 24 February, the cost of inflation will further pressure margins, it said. Third-Quarter Performance Consolidated sales in the third quarter rose 22.7% to €6.5 billion (US$6.5Bn), driven by the company's market-leading Polish discount retail chain Biedronka, that posted a sales increase of 21.6% to €4.4 billion (US$4.4Bn). Annual food inflation in Poland clocked 19% in September. Even though Poland’s consumers grew more cautious and price-sensitive, spending on food has increased, outpacing food inflation. Health and beauty retailer, Hebe posted sales growth of 33.6%, that benefitted from the previous year's low base. At home, supermarket chain Pingo Doce posted a 13.4% rise in sales to €1.1 billion (US$1.1Bn) and Colombia's discount retail chain Ara booked €467 million (US$467mio) in sales, up a steep 64% from a year earlier. The company said it also increased its investment programme to €950 million (US$950mio) from €850 million (US$850mio) due to Ara's more ambitious expansion plan, with 230-250 new stores planned instead of 180, and the higher cost of construction and equipment in all its markets. See here for more: https://www-esmmagazine-com.cdn.ampproject.org/c/s/www.esmmagazine.com/amp/retail/jeronimo-martins-profit-up-as-inflation-boosts-sales-outlook-uncertain-224719