Discount Retail Chain retailers Aldi (German family owned) and Lidl GB (owned by the German Schwarz Group) will overtake Tesco, currently the UK’s largest supermarket, within the next five years, according to predictions of former Lidl UK boss Ronny Gottschlich. Gottschlich, who ran Lidl’s British operation for six years until 2016, said that between them, Aldi and Lidl would “overtake Tesco by 2027 at the latest”. He also believes they will “grow their combined market share, currently at 16% to 20% within the next year and a half.” His statement follows on from last week’s Kantar market share data which revealed that Aldi had overtaken Morrisons to claim its place in the Big Four, as its share of the UK market grew to 9.2%, overtaking Morrisons 9%. Between them, Lidl and Aldi have gained £2.3 billion (US$ 2.65 Bn) of British grocery sales over the past year, representing a significant shift in spending towards the relative newcomers to the UK market. It was also recently revealed that Lidl and Aldi are currently second only to Tesco for UK market share, with a combined share of 16.1%. As market leader, Tesco currently has 26.9% of the UK market share, while the next largest, Sainsbury’s, has 14.8% of the sector, placing the discounters’ combined efforts firmly in second spot. Gottschlich also suggested that the new private equity owners of both Asda and Morrisons will be able to hold their own in the competitive sector, with significant debts standing in the way of any expected returns on their investments. Asda was bought last year by the Issa brothers and buyout firm TDR Capital for £6.8 billion (US$ 7.8 Bn), while Morrisons was taken over by US private equity group Clayton Dubilier & Rice for £10 billion (US$ 11.5 Bn) earlier this According to reports in the Daily Mail, Gottschlich said it would be difficult for the private equity owners to make the kind of profits they would have initially been expecting, which would require margins of 4 to 5%. He pointed out that Lidl’s owners, the German Schwarz family, make a margin of just 2%, worth a total of £2.4 billion (US$ 2.8 Bn) a year. “As a family you cannot spend that amount of money”, he said. A Morrisons spokesman said: ‘Customers don’t really care about market share statistics. They care about value, quality, provenance and service and that is where our focus is going to remain.’ See here for more: https://www.grocerygazette.co.uk/2022/08/30/aldi-lidl-overtake-tesco-2027/

Discount Retail Chain Lidl Hungary (owned by the German Schwarz Group) has been named the top retailer in Hungary for the second year in a row, according to the 2021 Retailer Ranking by local portal Trademagazin. The rankings in the Retailer Ranking study are determined by the sales revenue provided by retailers, in local currency, as well as the size of each retailer's store network. Lidl closed 2021 with a turnover of about €2.49 billion (US$ 2.48 Bn), up on the previous year’s €2.28 billion (US$ 2.27 Bn), as well as boasting 191 stores, an increase of five stores year-on-year. Commenting on the discounter's performance, Trademagazin said that Lidl 'greatly outperformed its competitors. Similarly, the company was able to show double-digit growth in terms of results, operating profit increased by 11% and profit after tax by 17%'. Spar Hungary, which opened the most new stores in 2021 (+26, giving it a total of 614), followed in second place with a turnover of €2.14 billion (US$ 2.13Bn), up from the €2.02 billion (US$ 2.01 Bn) it reported in 2020. Third-placed Tesco achieved a 2021 turnover of €2.07 billion (US$ 2.06 Bn), €2.0 billion (US$ 1.99 Bn) in 2020 and a store network of 198 outlets, a drop of three outlets. Best Of The Rest The top 10 also includes Coop Hungary turnover of €1.82 billion (US$ 1.81 Bn) with 3,939 stores; CBA turnover of €1.54 billion (US$ 1.53 Bn) with 1,968 stores; Auchan turnover of €1.26 billion (US$ 1.25 Bn) with 24 stores; Real turnover of €1.17 billion (US$ 1.16 Bn) with 1,151 stores; Penny Market turnover of €1.05 billion with 227 stores; Aldi turnover of €1.04 billion (US$1.03 Bn) with 153 stores; and dm-drogerie markt turnover of €362 million (US$ 360 Mn) with 259 stores. Falling just outside the top ten, meanwhile are drug store chain Rossmann turnover of €311.9 million (US$ 310 Bn) with 235 stores and Müller turnover of €162 million (US$ 161 Bn) with 33 stores. See here for more: https://www.esmmagazine.com/retail/lidl-named-top-retailer-in-hungary-for-second-year-running-206249

Dutch consumers more often move to cheaper budget supermarkets now that retail prices in the stores are rising fast. As a result, discounters Aldi and Lidl win market share in the Netherlands. That is what market researchers and retail experts say to the dutch FD. Dutch inflation rose to an unprecedented 13.6% on an annual basis in August, according to the Central Bureau of Statistics. Recently the Central Planning Bureau predicted that consumers purchasing power will fall by 6.8% this year, the biggest decline since the Second World War. People also notice this at the checkout in the supermarket. Foods rose the most in price this summer since the 1970s. That is why people seek the cheaper supermarket more often. "We see an inflation effect in the market shares of Dutch supermarkets for the past four to six weeks," says Sjanny van Beekveld of market researcher IRI. The market share of Lidl and Aldi has risen from 15.7% to 16.3% so far, according to figures from IRI. Aldi and Lidl instead of Albert Heijn and Jumbo For a while the increase in the discounters could be explained by recovery after the corona pandamie. According to Van Beekveld, the Dutchman visits on average two supermarkets per week. During the pandemic that changed: people did their groceries only at one store: the nearest. This year, consumers went to more stores again. The discounters grew further in recent weeks, says the researcher. They now have more market share than for the pandemic. Retail expert Frank Quix also sees that. His consultancy firm Q&A Insights & Consultancy asked 850 consumers how their buying behavior changes due to inflation. The research shows that Albert Heijn and Jumbo are losing customers in favor of Aldi and Lidl. Whereas last year 30% of the consumers surveyed did the most shopping at Albert Heijn, this year is 24%. Lidl replaces Jumbo as well-visited supermarket. 22% of consumers most often enter the German supermarket, compared to 18% last year. Will increase even further Van Beekveld expects the discounters to grow further in the coming period due to the rising prices. "We see that people re-evaluate their behavior after the summer vacation. They now look at where they will buy in the coming period. "In addition, many people will see their energy bills rise in the coming months. Quix also thinks that the shift will continue. '73% of the consumers surveyed say that inflation affects them, compared to 61% in April. As inflation persists, more people start buying differently. " Bargain chains have been gaining ground for some time in other European countries. The market share of Aldi and Lidl has been growing in the United Kingdom for months. Aldi recently even hit the British Morrisons off the throne. The German chain is now in the top four of the most visited supermarkets in the country. In France, Lidl was the best performing supermarket this summer, together with Carrefour. Prices in the supermarket rise faster Extreme inflation has changed how shopkeepers and suppliers do business. In many cases they only conclude short-term contracts. Suppliers pass on the higher costs of energy, transport and raw materials faster to supermarkets. As a result, cost increases end up with the consumer faster. At the same time, supermarkets are doing their best to keep customers. Albert Heijn (owned by AHOLD-DELHAIZE) recently praised its own brand products in a full -page advertisement. "Half of our turnover comes from these products and we see its popularity rising enormously," says a spokesperson. Jumbo also says that customers more often choose the private label. To maintain customers, Albert Heijn and Jumbo can give even more attention to their own brand, thinks Quix. "The prices of these products correspond reasonably with the prices at the discounters." His research shows that consumers have bought more private label products in recent months. Struggle to make ends meet Supermarket chain Dirk announced on Tuesday that it reduces the prices of more than 200 products, on a total of around 7,500 products. "We make well-selling basic messages cheaper, such as pasta, toilet paper and bread," says Marcel Huizing, director of Dirk. 'Many families struggle to make ends meet. They are looking for the cheapest possible groceries. So everything helps. " See here for more: https://fd.nl/bedrijfsleven/1450302/ongende-inflatie-drijft-consument-discountsupermarkt-s4H2CAU0BFHU?utm_Medium=social&utm_sour=linkin&utm_campaign=earNed&ut2083 https://fd.nl/bedrijfsleven/1450302/ongekende-inflatie-drijft-consument-naar-discountsupermarkt-s4h2caU0BFhu?utm_medium=social&utm_source=linkedin&utm_campaign=earned&utm_content=20220831

How do Discount Retail chains advertise and communicate in the new reality? What kind of message do retailers choose? Who does it best? - Wojtek Walczak, strategic director of the Plej agency, has the following opinion. During the lockdown, communication activities replaced advertising. How are grocery chains acting in the new reality? Wojtek Walczak: Looking at the advertising activities, retail chains have returned to the new normality, and the remains of the lockdown are practically just masks on the faces of shoppers' customers. Discounter Lidl Saturdays, Discounter Aldi promotions and Discounter Biedronka's deals and freebies are back for good. In communication, of course, you can still feel safety-related accents, but everything is definitely outlined by promotional communication and neutrality in relation to COVID-19. One might even be tempted to say that shopping has started to bring customers joy again, including queues at the checkout. This once again shows how short the memory of consumers is and how quickly the consumer wants to get back to what is known and liked. What kind of message did retailers choose? For mid-2020, the main social trends are three: local, smart shopping and mobile. Of course, none of them is new, each has already had its time on our market, but now they are becoming prominent messages that the consumer expects. To sum it up in one sentence: it is important today to offer local products at good prices and promotions, both physically in the store and by using a smartphone. An example of such an action is Lidl Plus, which clearly communicate smart shopping, and give customers more and more the impression of buying local. Who communicates best with consumers? Discounter Lidl, Discounter Biedronka and convenience store Żabka are definitely three brands that govern communication. It is also worth paying attention to the communication of Discounter Aldi and Delikatesy Centrum, they are trying to find their place in the market and attract the attention of a wider audience to create a better customer experience. What do the consumers themselves expect? The time of storytelling has long been forgotten, now it is important to focus on the product and its value for the consumer. And of course, the price at which customers can buy it. Which does not mean that at the same time communication should not be bold, expressive and give consumers a moment of time well spent with the brand. Just as customers want to spend their money well, the customer also does not want advertising that is pushy, intrusive and without an idea. Click here for more: https://www.dlahandlu.pl/detal-hurt/wiadomosci/lidl-i-biedronka-to-mistrzowie-komunikacji-ale-wylania-sie-nowy-lider,89844.html

The current Polish Discount Retail market developments are motivated, apart from investments in the stores and warehouses, by an excellent response to the needs of consumers in terms of the assortment range and manner of shopping. The current economic situation may affect the further development of the Discount Retail format, says Konrad Wacławik, Client Team Manager at Nielsen Connect Polska in an interview with the media portal dlahandlu.pl. The discount market in Poland has been growing steadily for many years. DiscountRetail stores currently account for about 33% of the Polish retail market, which in relation to some European countries is high, but not the highest. In countries such as Norway, Denmark and Belgium, discounters have an even stronger position. Discount stores provide many benefits: shopping place close to home, lower price, development of the BIO offer, private labels, etc. Currently, discount retail chains have come very close to small, sometimes exclusive supermarkets in their concept, drawing the best from various channels. Therefore, this creates a place for chains that will position themselves as the so-called "hard discounters", where the main goal is to communicate the price, to ensure a large stock of products at the most competitive prices, forgetting the design and/ or marketing - believes Konrad Wacławik. According to the Nielsen expert, the potential development of this hard discount format may be influenced by the current economic situation. The increase in food prices, prospects on the labor market and the announced increase in unemployment will certainly encourage buyers to look for cheaper products. Another argument in favor of the fact that there is room for this type of hard discount stores may be the observation presented during the Trend Week K20 event. The Nielsen researchers pointed on the lack of clear customer segmentation and focus. As hard discount stores, focuse solely on offering and communicating to consumers looking for the lowest price. This could fit the needs of specific customer groups and create new loyal customers - explains Konrad Wacławik. The Nielsen expert also added that we must not forget, however, that nowadays it is crucial for Poles to search for good quality at the right price. In recent years, customers have been paying much more attention to the quality of products. Despite the pandemic and the more difficult situation, we are currently still observe a growth of eco-, health- and functional- product trends. It will certainly be a challenge for hard discount stores, at the same time when competition remain promoting price. However, observing the current economic situation and portfolio of the discount chains active on the Polish market, Nielsen states that there is place for hard discounters, although it is for a very specific group of recipients, at the moment rather not mainstream. Click here for more: https://www.dlahandlu.pl/wiadomosci/,89935.html

Discount Retail Chains, which dominate the Polish FMCG market, will continue to dynamically increase their holdings. Michał Maksymiec, director of cooperation with retail chains of the GfK Polonia Household Panel, forecasts that in 2025 there will be as many as 5,300 discount stores in Poland, while in 2020 there were "only" 4,425. Biedronka and Lidl are leaders in the grocery discount retail trade in Poland. The Netto chain also intends to join the group of leading players, as it has started absorbing approx. 300 branches taken over from Tesco. The fourth discounter, Aldi, is also accelerating its expansion after years of very slow development and has no intention of withdrawing from the Polish market. This group is joined by new players trying their hand at the hard discount channel. These are chains such as Polish Vollmart, Russian MERE or French (developed by Carrefour) Supeco. These three chains do not have a total of even 20 stores in Poland, but who knows if they will not be able to cover the significant niche that appeared on the market due to the "supermarketisation" of larger discount retail chains. In 2000, we had only about 1,000 grocery discount retail stores in Poland. Since then, the format has been dynamically developing. In this respect, Biedronka was the leader, which at the peak was able to launch up to several hundred stores a year, and only around 2015 it slowed down the pace of openings to 100-150 new stores on an annual basis. This is why we did not exceed the limit of 4,000 discounters in Poland only in 2018. The forecast of 5,300 discount retail stores in 2025 was presented on Wednesday during the Retail & FMCG Congress 2021 by Michał Maksymiec, Retail Vertical Clients Director at GfK Polonia. As the expert noted, it is the number of discounters in our country, which is increasing year by year, to a large extent contributing to the increase in the value share of private labels in the entire shopping basket of Poles. GfK data shows that in 2011 private label was responsible only for 14.5 percent. FMCG sales in Poland. Four years later, it was already 17.4%, and in 2019 as much as 18.4%. Also, the pandemic did not turn out to be an obstacle for private labels. The value share increased in 2020 to 19.3%. GfK forecasts assume that in 2022 the private label share in the shopping cart will amount to 21.2%, and therefore will increase by PLN 5.9 billion (US$1.5 billion). See here for more: https://www.wiadomoscihandlowe.pl/artykul/5300-dyskontow-spozywczych-bedzie-dzialac-w-polsce-w-2025-r-ruszy-niemal-900-nowych-sklepow-w-tym-formacie

These are the two richest Germans both owners of discount retail chains: 1. Beate Heister (69) & Karl Albrecht Jr. (74) - discounter Aldi Süd Beate Heister, born Albrecht, and Karl Albrecht Jr. have the largest fortune in Germany. According to "Forbes" they are worth 32.3 billion euros (US$ 39 billion). The siblings owe their wealth to their father, Karl Hans Albrecht. Together with his brother Theo Albrecht sen. 1945 the parents' grocery store, which was to become the Aldi Group in the coming decades. In 1961 the brothers parted ways, Theo took over Aldi Nord and Karl took care of Aldi Süd. Karl Albrecht died in 2014 at the age of 94. Both Heister and Albrecht Jr. are little known to the public. You look for interviews or TV appearances in vain. Because the siblings had to learn early on that fame and fortune can also be dangerous: their uncle Theo Albrecht Sr. was kidnapped in 1971 and only released against payment of a ransom. The siblings have since withdrawn from the company, Albrecht was already suffering from three cancer cases in 2004. Heister is still active as a board member of the Siepmann Foundation. Her son Peter Max Heister heads the foundation. The family foundation is one hundred percent owner of Aldi Süd and was founded by father Karl Hans Albrecht in 1973. Siepmann was his mother's maiden name, Anna Albrecht. 2. Dieter Schwarz (81) - discounter Lidl & supermarket Kaufland Dieter Schwarz is not only the second richest person, but also the richest company founder in Germany. In contrast to the USA and China, only a few super-rich in Germany have earned their wealth themselves, mostly from inheritance. He owns the Schwarz Group, to which Lidl and Kaufland belong. His fortune increased the most in the last year, it has almost doubled from 16.3 billion (US$20 billion) to 30.5 billion euros (US$37 billion). Schwarz also lives very withdrawn. Allegedly, he retired in the late 1990s. With his wife Franziska Schwarz (born Weipert) he has two grown daughters who do not work for the company. See here for more: https://www.focus.de/finanzen/news/die-erben-von-bmw-aldi-und-co-das-sind-die-fuenf-reichsten-menschen-deutschlands_id_13394215.html

Discount Retail Chain Lidl (owned by German Schwarz Gruppe) represented 7% of mass retail sales in France in March. With a 7% market share in March, Lidl continues its ascent in French supermarkets. How far can hard discounting in France go? Credited together with just over 7% market share in 2016, the Lidl and Aldi discount retail brands are now close to 10%, according to the latest Kantar figures. And their weight will automatically increase in the coming months once Aldi has passed under its flag the 547 Leader Price stores bought from the Casino group. By the end of the year, the two German discounters should therefore greatly exceed the 11% market share, or even more with growth linked to their own dynamics. Still far from Germany where the two players represent more than 30% of sales in supermarkets but little by little discounters are digging their wake in France. "Entering the top 3 of retailers in France is impossible for them in the medium term, believes Olivier Dauvers, expert in mass retail. On the other hand, they will cross 15% within 5 years, that's a certainty." In a sector where we are struggling to gain a few tenths of market share, Lidl is advancing at a fast pace. The discounter, which barely weighed 4.5% of the market in 2016, exceeded 7% for the first time last December. Before reaching this threshold again in March with a gain of 1.1 points compared to February. As for Aldi Nord (privately owned), with the takeover of the Leader Price stores and their transformation which should be completed by the end of the year, we are also preparing to change dimension. Less well known than its rival, Aldi more than tripled its advertising budget in 2020 (+ 231% according to Kantar) and is now the fifth advertiser in the sector, ahead of Système U and Auchan. Lidl being third in this ranking, just behind Intermarché, but well ahead of Carrefour. If these brands spend a lot on advertising to make a name for themselves, it is in the field that they have made a radical transformation in a few years. "Lidl's growth can be explained first and foremost by its store base, assures Olivier Dauvers. It is fairly stable around 1,550, however the stores are getting bigger and bigger. The old ones averaged 600-800 m²., half today exceeds 1,000 m². Lidl has renovated its stores extensively. A renovated Lidl store represents a 50% increase in turnover." Like the very large Lidl in Villetaneuse (93) which opened its doors last December. This is a former 2,200 m² Auchan supermarket that Lidl bought from the struggling brand. More beautiful and more spacious, it symbolizes the new Lidl which wants to be more attractive. And if its rather tenuous product offer has changed little in recent years, Lidl has been able to showcase them better by increasing the number of retail hits first (Monsieur Cuisine, prestigious wine fairs, offbeat sneakers to create a buzz on the internet etc. ). By attracting a more urban and affluent clientele in its points of sale, the brand has managed to retain some of them. "Lidl has also spoken in societal debates such as the remuneration of farmers, it marked the spirits, explains Olivier Dauvers. Today it is the Lidl stand which is the most visited of the agricultural show." From now on, we go to Lidl because we made the choice of Lidl. And not only because we have no choice. "The hard-discount before told customers that they were poor, today it tells them that they are smart", summarizes Olivier Dauvers. More beautiful and larger stores, a limited food offer that allows them to buy in very large quantities to have low prices, an effective policy of coup on non-food products. If the strategy is well established, will be sufficient to change dimension and become as essential as in Germany? "It's going to be difficult, in Germany they have the history and have done this work on the image for a long time, assures Frank Rosenthal, specialist in consumer marketing. There, they had no or almost no stores. Impoverished, the customer did not feel like a "sub-consumer." Neither drive nor e-commerce Especially in France, Lidl and Aldi remain secondary stores. Even though one in two French people now go to a Lidl store at least once a year, their shopping basket is lower than at Leclerc or Carrefour. This is explained by a more limited choice of around 1,700 SKU references against several tens of thousands in supermarkets and hypers competitors. "If we offer more, we leave the Lidl model", explains Michel Biero, the sales director of the discount store. Lidl customers know they won't find everything in their store, just the essentials at a great price. " What is a strength today could turn out to be a weakness if these brands want to change dimension. Like, moreover, their virtual absence from online sales channels. While drive and food e-commerce represented 10% of sales in 2020, the two discounters are absent subscribers. Aldi does not sell absolutely anything online and Lidl only has a travel site and a wine shop. "They will have to go through the drive to change their status and they will come there," said Frank Rosenthal. Aldi already offers click and collect in Germany and the United Kingdom. Lidl only offers non food products." Aware of having missed the boat in 2020 with the explosion of food e-commerce, Lidl nevertheless ensures that they are making progress on the subject. "Our reflections are accelerating on the subject, assures Michel Biero. It is not too late, we have double-digit growth. A drive does not happen so quickly, you have to study the market well, it cannibalizes a little stationary, you no longer have to buy impulse when you have drives. But we are going to test things." See here for more: https://www.bfmtv.com/economie/lidl-aldi-le-discount-en-france-peut-il-devenir-aussi-gros-qu-en-allemagne_AN-202104110086.html

IF YOU ASK GERMANS ABOUT THEIR FAVORITE SUPERMARKET, THE ANSWER IS “EDEKA”. AT LEAST FOR 2020, AS A STUDY SHOWS. Almost 25% of those questioned spoke in favor of the supermarket giant. Lidl landed in second place, shortly before Aldi Nord and Süd, which share third place. The ranking looks a little different when it comes to sales. Here, Edeka also ranks first in the comparable period of 2019, followed by Rewe. The bottom line is that the number of companies active in the food retail sector in Germany is one fifth of all retail companies in the country. The competition in the grocery retail is fierce, which leads to general price competition and an increase in market concentration. In 2019, the food retail had a total turnover of 166 billion euros (US$200 billion). It thus accounts for around a third of total German retail sales. However, the picture of sales development changes if one differentiates between discounters and supermarkets: supermarkets were able to increase their sales by 5.1% in 2019, discounters only by 0.8%. In the corona year 2020, both supermarkets and discounters recorded enormous increases in sales. In some cases as much as 17% more sales in December 2020 (compared to December 2019). Overall, the annual result should be more than 11% higher. Edeka is also strong in number of stores When it comes to the largest and most modern supermarket in Germany, Edeka is one step ahead here too: The largest supermarket in Germany opened its doors in downtown Düsseldorf in 2018: customers can choose from more than 60,000 SKUs on around 12,000 square meters over two floors. In total, Edeka has over 11,000 stores in Germany. For years, the same four supermarket chains have always been in first place when it comes to sales worth in billions. There is not much movement in play, as shown again by the figures for the comparison period 2019, for which all comparable figures are available: Edeka (with Netto Marken discount), Rewe (with Penny), the Schwarz Group as the holding company of Kaufland and Lidl and Aldi (North and South). These four grocery chains do business with more than 70% among themselves. Overall, the sales of the 30 largest supermarket chains in the food retail sector in 2019 amounted to around a 0.25 trillion euros (US$0.3 trillion). The 30 largest grocery retailers in Germany increased their total sales in 2019 compared to the previous year by around two percent to around 247.9 billion euros (US$300 billion). Supermarket chains in Germany: Edeka is growing the fastest Edeka recorded the fastest growth: The food giant achieved gross sales of 61.25 billion euros (US$74 billion) in 2019. With a good 24%, the sales giant thus represents almost a quarter of the market share in the entire German food trade. Edeka's regional companies increased their sales in 2019 by a whopping 4.1%. The brand discounter Netto, which is also part of Edeka, achieved growth of just 1%. The Rewe Group, number two in the industry behind Edeka with a 17.7% market share, had sales of around 44.9 billion euros (US$54 billion) in 2019. The turnover of the supermarkets and hypermarkets was around 24.5 billion euros (US$29 billion). With the takeover of Lekkerland, the Rewe Group was able to increase its sales by a total of 12 billion euros (US$14 billion) in 2020. In third place: the Schwarz group The Schwarz Group has a market share of 16.4% in Germany. The group achieved gross sales of around 41.3 billion euros (US$50 billion)in 2019. The discounter chain Lidl, which belongs to the group, was in the lead: Here sales were around 25.85 billion euros (US$ billion) an increase in sales of around 3.5% whereas Kaufland, also part of the Schwarz Group, had sales of 15.4 billion euros (US$18.5 billion). Aldi Nord and Aldi Süd are two independent corporate groups that operate under the name Aldi Group. With a total of 11,235 stores, the two Aldi companies are considered the largest discounter in the world. The Aldi Group recorded gross sales of around 29.5 billion euros (US$35.5 billion) in 2019 in Germany, placing it in fourth place. The German market share of the food discounter is around 12%. Unlike the first to third place among the top-selling grocery chains, the increase in sales at Aldi is 0.6% (south) and 0.4% (north) below the one percent mark. Company number of employees 2019 Edeka 381,000 Rewe around 260,200 Schwarz group around 150,000 Aldi around 47,100 (south), around 38,000 (north) Metro group around 14,000 dm around 40,500 Rossmann around 34,000 Metro loses, Real markets are smashed The Metro Group, to which real also belongs, had to cope with a 3.1% decline in sales with Metro with real in 2019. Overall, the Metro Group's sales fell by two percent compared to the previous year. In 2020 the ailing real markets were smashed; Since then, several supermarket chains have expressed interest in taking over various branches. These include Kaufland, Globus and Edeka. After the Federal Cartel Office granted permission for up to 160 stores to change hands, Kaufland took over 92 of the 246 stores, Globus 24 and Edeka initially 45 stores. The drugstore market dm, ranked 6th among the most powerful supermarket chains in 2019, recorded an increase in sales of 2.1% for 2019 compared to the previous year and brought it to 8.37 billion euros. For the sake of completeness, Lekkerland (part of the Rewe Group since 2020) with 7.9 billion euros in sales (minus 3.7%) and the drugstore Rossmann (7 billion euros in sales (plus 5%)) follow in the 2019 survey period. The dominance of the Edeka group in the supermarket segment is not only reflected in the sales figures, but also in the stores. The same applies to the discounters Lidl and Kaufland: Company number of stores in 2019 Edeka 11,207 Rewe (groceries) 3,600 Schwarz Gruppe 12,100 Aldi 4,159 Metro Group (Real) 246 dm around 3,700 Rossmann around 2,200 Discounters are investing in more retail space Lidl, Netto, Aldi & Co: Discounters in Germany are on the advance when it comes to expanding their branches. The stores are not only being enlarged and expanded, the range of goods is also being expanded bit by bit. Lidl and Aldi in particular have significantly maximized their retail space in the recent past, with an average of 1,000 square meters per store. At Netto, the size of the sales area averages 800 square meters, while Norma with 741 and Penny with around 727 square meters per store. The sales forecast in connection with the average growth in the industry is based on slightly declining figures. One of the reasons is the Corona crisis, which is driving online retail and is therefore likely to have an impact on brick-and-mortar business. In 2020, Edeka recorded almost 30 million customers who, according to a survey, had shopped in one of the branches belonging to the group in the past six months and was thus ahead of the classic supermarket chains. Among the discounters, it was Aldi with 44.66 million Germans who, according to the survey, had shopped in one of the Group's branches in the past three months. Overall, the survey on consumer behavior also showed that men apparently prefer shopping in Real stores (48.9%) compared to Edeka stores (44.2%). And even more figures: The size of the range of articles is at the same level with the industry leaders Edeka and Rewe (groceries): According to the companies, the number is up to 50,000 products that are constantly in the range. For the Netto discounters, Edeka specifies a number of items of around 3,600, whereas the range at Lidl is estimated at around 2,800 products. At Aldi there are around 1,750 products that are constantly on the shelves and are supplemented by around 130 special in&out offers every week. See here for more: https://www.supermarkt-inside.de/hinter-den-regalen-die-acht-groessten-supermarktketten-deutschlands-in-zahlen/

Discount Retail Chain Aldi Germany (German family owned) recently announced the Interseroh + cooperation; the cooperation on recycling is to start in January 2022. With this, Aldi is also entering the garbage business after Lidl. The two group sisters Aldi Süd and Aldi Nord have a new partner: From 2022, the discounter duo wants to work with the Alba subsidiary Interseroh + from Cologne to recycle packaging. Aldi is thus following its competitor Lidl, which has also been active in the recycling business for several years. "It is a remarkable step that Aldi is taking with it. It could turn the entire industry inside out," says Henning Wilts from the Wuppertal Institute for Climate, Environment and Energy. Because the group is changing its previous strategy: only last year, Aldi had signed a waste disposal contract with the Remondis subsidiary Eko-Punkt. After just twelve months, the latter is now losing its two largest customers, who together account for around 12.5 percent of the licensed volumes, to the Alba Group. Lidl is a pioneer in recycling According to the Packaging Act, retailers must ensure that the packaging is collected and recycled. The background to this was the Packaging Ordinance, which came into force in 1991, which obliged industry for the first time to take back packaging put into circulation after use and to recycle it. In Germany, most retailers therefore have recycling agreements with dual systems. There are ten of these on the German market, some of them are extremely small and significantly undercut in price. "In the past, discounters were happy when someone else took care of the garbage. That is now changing," says the expert. Sooner or later, this could mean that some of these small dual systems, which are already insignificant internationally, could disappear. Until now, Lidl was the only discounter that took waste disposal and recycling into its own hands. The group bought a recycler a few years ago and was able to establish a circular economy with it. The Aldi competitor can benefit from this, he uses the recycling products as raw materials for the packaging of his own brands. "The concept seems to be working. Because Lidl can very easily ensure that the new packaging is actually produced sustainably from products it has recycled itself," explains Wilts. This also has financial advantages for Lidl. Because if you promise to produce packaging from recycled material, you will usually pay for it, according to the expert: "A ton of recycled PET actually costs significantly more than new PET." That is why it is necessary to rethink waste management, especially under the aspect of sustainability, which is becoming ever more important. In addition, the prices for raw materials will rise rather than fall in the coming years, and thus the costs of packaging materials will rise in the long term. Strategic partnership However, Aldi is taking the more cautious path than the competitor. Because Aldi does not buy a recycler in order to bundle the circular economy in its own group, but begins "a strategic partnership" with Interseroh +. The sister companies will remain in the background in the partnership with the Cologne-based company. This is intended to give Aldi privileged access to sorting and recycling facilities. This also gives the group access to sought-after secondary raw materials. "Access to secondary raw materials opens up new business areas for us and gives us independence," explains Kashif Ansari, Chief Strategy Officer (CSO) at Aldi Nord. As Interseroh + describes, the company's central recycling approach is to "process the collected packaging back into new packaging and products wherever possible". The aim is to ensure that the legal requirements that the Packaging Act prescribes are met. Development of a material cycle Interseroh + was spun off from Interseroh in May in order to be able to turn disposal customers like Aldi into co-shareholders, a spokesman for the parent company Alba Group confirmed to the "Handelsblatt". Aldi itself describes the partnership as the first step in a press release: "Other topics such as packaging design and packaging innovations are planned together with Interseroh +." Industry expert Wilts thinks this makes sense: "Interseroh has announced that it will also support Aldi in building a circular economy. This means that together we can find answers to questions such as 'Where do we have to collect the packaging?' and 'What does the packaging have to look like so that it can be easily recycled?' Aldi discounters want to recycle all their own brand packaging by the end of 2022. In addition, by the end of 2025, all plastic packaging of the own brands should come from at least 30 percent recycled materials. See here for more: https://www.tagesschau.de/wirtschaft/unternehmen/aldi-recycling-101.html

The German independent testing institute and publisher 'Stiftung Warentest" tested 32 classic mineral waters conclusion: water from German supermarkets is usually good. They provided the grade “very good” eight times, including the 6 discount retail brands from Lidl, Penny, Rewe, Norma, Aldi Süd and Aldi Nord. The 6 German Discounter brands: Lidl Saskia Classic (Source Läningen) Penny Classic ("Forest Source") JA! Classic ("Quintus Source") Aldi Nord Quellbrunn Classic Aldi Süd Quellbrunn Classic Norma Surf Classic The 2 German national brands: Vilsa Naturfrisch Classic Aquintus Classic The mineral water from discounters Lidl, Penny, Rewe and Aldi usually costs 0.25 euros (US$ 0.27) per 1.5 liter PET bottle, which corresponds to the already mentioned liter price of around 0.17 euros (US$ 0.18) Well-known national branded products such as Gerolsteiner, San Pellegrino, Residenz Quelle and San Benedetto scored "good". However, they are also very expensive at around 0.50 euros (US$ 0.53) per liter. Some time ago, 'Stiftung Warentest' also examined butter, a discounter product was one of the test winners. See here for more: https://www.ruhr24.de/service/rewe-preis-mineralwasser-discounter-stiftung-warentest-test-wasser-lidl-adli-r24-liter-91631012.html

Discount Retail Chain Lidl GB (owned by the German Schwarz Group) has become the first major supermarket to introduce a new label in stores that will help those who are struggling to pay for their food. In an industry first, the supermarket has launched the 'Good To Give' trustmark which aims to diversify the donations to UK food banks. Hull Live reports that, starting from today, shoppers looking to donate to food banks can find the 'Good to Give' trustmark on shelves across all Lidl GB stores. The signage will feature on 30 products across all Lidl GB stores, including tinned fruit, noodles, and veg, and it will help those who rely on food banks to get the balanced diet they need. The initiative will highlight carefully selected long-life items that offer a greater variety of nutritional benefits and which can be dropped at food donation points located past the checkouts in Lidl stores. The items will then be collected regularly by local food banks and community projects. Lidl GB launched the new trustmark as a response to the cost of living crisis, with over 9 in 10 charities believing that it will have a significant impact on their organisation and the communities that they serve. The ‘trustmark’ was developed by Lidl in consultation with Neighbourly - a platform that connects surplus food with local good causes – after 87% of charities reported needing a greater range of food types to be donated to help those in need have a healthy, balanced diet. The trustmark is aimed at diversifying the donations to UK food banks Through the partnership with Neighbourly, Lidl has identified 30 food items that are ‘Good to Give’, modelled on the NHS Eatwell Guide. The products selected include tinned fruit, lentils, mackerel, noodles, and brown rice. The launch is an industry first and forms part of Lidl’s ongoing commitment to ensuring that good food is accessible to everyone, especially at a time of financial uncertainty. Ryan McDonnell, Chief Executive Officer at Lidl GB, said: “At Lidl, we’re committed to making good food accessible to everyone and now, more than ever, it’s important that we stay true to this. We’ve been listening to feedback from our charity partners on how we can best support them at this time. Through these conversations it became clear we can play a leading role in helping those relying on food banks to maintain a more nutritious, balanced diet by encouraging our customers to donate a little differently. We hope that more retailers will adopt the ‘Trustmark’ so that we can work together as an industry to help more people access the balanced and nutritious diet that they need.” Steve Butterworth, CEO of Neighbourly, added: "Through our work with local charities and good causes, supported by our latest community insights surveys, we can see how the cost of living crisis is causing steep rises in demand for food banks and front-line services. This is only going to increase in the coming months. With the launch of this new initiative, Lidl is demonstrating that they are truly committed to finding innovative ways to support their customers and local communities.” See here for more: https://www.dailyrecord.co.uk/lifestyle/food-drink/lidl-becomes-first-major-supermarket-27186731