Discount Retail Chain Pepco Group, owner of European discount retailer brands PEPCO, Poundland and Dealz, said a cost-of-living crisis in the United Kingdom has seen consumers scaling back even on essential items. The Warsaw-listed group, which recently appointed a new CEO, said that while the absolute levels of inflationary pressure were greater in Central and Eastern European markets, higher wages in those regions were substantially offsetting this in the short term. In Western European markets, however, the acute spike in inflation in a stagnant wage growth environment had quickly resulted in absolute lower spending by consumers. Disposable Income "Specifically in the UK, the cost-of-living crisis has impacted customers’ disposable income as they scale back even on essential purchases in the short term," Pepco said. The group said a focus on reducing the costs of doing business meant it was able to offset some of its input inflation. This was "allowing us to protect prices for all of our cost-conscious customers whilst also absorbing some of the input inflation ourselves". Earlier this week, U.S. retailer Target cut its quarterly margin outlook and said it would have to make deep discounts to clear inventory, as decades-high inflation weighs on demand. PEPCO said the war in Ukraine, a country which borders three of its largest operating territories, continued to create volatility, albeit with some trading upside driven by the influx of people to core PEPCO markets. The conflict was also exacerbating existing supply chain disruption and inflationary headwinds. First-Half Earnings Pepco reported a 7.3% rise in first-half core earnings, driven by new store openings. It made underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of €347 million (US$ 371 million) for the six months ended March 31, in line with the company's guidance. Revenue rose 18.9% to €2.37 billion (US$ 2.64 billion) as the company opened a net 192 stores, taking the total to 3,696 across 17 countries. Like-for-like sales rose 5.3%. Pepco said its same store performance in its third quarter so far was above pre-COVID-19 trading levels and it remained on track to meet its full-year guidance in the absence of any further significant deterioration in the macro environment. See here for more: https://www.esmmagazine.com/retail/discounter-pepco-says-uk-shoppers-cutting-purchases-of-essential-items-176111

Discount Variety Retail Chain Dollar General’s (listed DG at NYSE) test of stores without staffed checkout counters comes as the retailer deals with rising costs and strives to remain attractive to its core customer base. Associates in stores participating in the pilot will still be able to assist shoppers during checkout, but the company believes they will better serve customers by handling other tasks, Owen said. The discount chain saw its comparable-store sales slip 0.1% year-over-year during Q1 and its operating profit sag almost 18% by the same measure, signs the fast-growing company is having trouble generating sales organically and is instead depending on new locations to boost its top line. Underscoring that, Dollar General’s net sales rose 4.2% during the quarter, to $8.8 billion, even as same-store sales were essentially flat. The company added 239 new stores during the quarter and is on track to debut 1,110 locations in 2022, according to Owen. Most of those stores will be based on the retailer’s 8,500-square-foot format, a larger design than its legacy locations that allows more room for items like produce and health-oriented products, Owen said during the call. “Present economic circumstances are extremely challenging and are delivering Dollar General a larger dose of problems than benefits,” Neil Saunders, managing director of GlobalData Retail, said in emailed comments. “This means the company will need to do more than opening loads of new stores, including looking at how it can attract and retain new shoppers and how it can persuade pressured existing shoppers to spend more.” Speaking during the earnings call, Dollar General CEO Todd Vasos said the retailer has been able to pass on to consumers some of the higher costs it is seeing by making adjustments to its merchandise selection, including by reducing product sizes. “We make sure that we can layer it in where the consumer still knows and sees the value of what we offer,” Vasos said. Dollar General carried produce in more than 2,300 of its approximately 18,000 stores as of the end of Q1, Owen said during the call. The retailer plans to boost the number of locations that offer produce to more than 3,000 by the end of 2022, he said. Owen added that investments in e-commerce are paying off for the company, noting that the retailer’s partnership with DoorDash is yielding strong results. Dollar General offered same-day delivery service from about 11,000 of its locations through DoorDash as of the end of Q1, according to Owen. Dollar General is also rapidly expanding its in-house trucking fleet and expects this year to double the number of tractors it had last year, Owen said. The company operated more than 950 tractors as of the end of Q1, up from about 700 at the end of 2021, he said. See here for more: https://www.retaildive.com/news/dollar-general-piloting-self-checkout-only-stores/624559/

Discount Retail Chain Ara (owned by the Portuguese Jerónimo Martins), and Colombian discounter D1 (owned by the Colombian Valorem Group), the strongest, with sales of more than US$2.6 billion in 2021 and recently celebrated the opening of its 2,000th store. Unlike other Latin American countries, this business model that has been operating since 2009 in Colombia is the first in terms of penetration, a position that it gains according to the most recent data for this year. Jaime García, Country Manager of Kantar Worldpanel Colombia division, explains that the level of penetration of these chains that are in the neighborhoods of several municipalities in the country reaches 92%. "That means that 92% of the country's population, in the sample that we represent, which is 80% of urban coverage, already visits a hard discount at least once a quarter," he says. And he points out that a year ago that 4% difference corresponded to buyers who did not go to these stores to stock up. Meanwhile, the neighborhood stores that “resisted” for years and that seemed unbeatable remained at the end of March 2022 at 88% penetration. This hard discount channel also leaves behind the large chains that reach 65%, say studies by Kantar. Another piece of data that shows the progress of this commerce format has to do with the purchase frequency, which has increased by 20% compared to 2021. Meanwhile, in mass consumption, this variable has decreased by 3%. "What people are doing is going to buy less often but they go to the discounter more often, so they build loyalty in the channel," says Jaime García. When reviewing the growth that the discounter has, in value it was 7% for the first quarter, while in the period January-March 2021 it was 15%. “The discounter is already reaching a very high level of penetration, so its growth rate is slowing down, but in a market where the context is complex in terms of higher inflation, there is a willingness of the homes to cheaper brands”, according to García. In fact, 61% of households are stating that they are willing to prefer them due to the situation. In addition, 55% of households are concerned about the increase in prices of goods and services and when looking particularly at this concern in food and beverages, this percentage reaches almost 66%. Inflation has increased 4.3% so far this year and the increase in prices of the mass consumption basket in the first quarter of the year is 19%, that is very strong, he adds. Households express concern in line with the possibility that this price increase translates into lower volume, a challenge for brands and their plans to grow. “This price increase would benefit discounters because if you look at the share of the entire household budget in the last quarter of 2021 it was 19% and in the first quarter of 2022 it grows to 20.8%. Earn a point of participation in the most critical period of inflationary growth”, concludes Jaime García. TIME IN FAVOR OF THE WHITE MARKS To ease the family economy, own brands manufactured by merchants are a solution because they generate savings. Although Tiendeo makes a general analysis of this phenomenon without discriminating the channel, it is true that the hard discounters have a strength with their offer. Faced with an increase in prices, consumers tend to make fewer purchases and opt for what, offering similar quality and characteristics, have a significantly lower price, which is why the so-called white brands have been a kind of refuge from the crisis. On the other hand, the effect that promotional offers have in motivating consumers to go to the store is indisputable. In this regard, Sergio San Martín, Country Manager of Tiendeo, specifies that "as a result of the rise in prices of basic products and in the face of this new economic situation, retailers and brands are designing more aggressive campaigns". He assures that "to encourage consumption, in the first 4 months of the year, manufacturers and retailers have redoubled their efforts, increasing their promotions up to 76% compared to the previous year, hoping to arouse the interest of the consumer to go to their point of sale and not to that of the competition”. They also apply a promotion on "hook" products (such as those of the basic basket or more expensive), adjusting their prices and placing them at the entrance of the stores or on the cover of their promotional brochures. Thus, in addition to capturing attention, it can also generate interest in carrying other products. According to Tiendeo, food and beverages have been the categories that have been most affected by the effects of inflation, with a variation of 25.37%. The analysis shows that products such as milk have had a price increase of 56%, eggs (40%), avocado (31%), white bread (22%) and vegetable oil (18%). This brings a considerable rise in the average household spending at the time of doing the market or, on the other hand, the cut of some less necessary products at home. See here for more: https://www.portafolio.co/negocios/empresas/discounter-desbancan-en-trafico-a-tiendas-de-barrio-565793?utm_content=Contenido_Portafolio&utm_medium=Social&utm_source=Facebook&fbclid=IwAR3dKAoEn2SGkK4tU_O09VSi9oyeqz1aCPjUi0zKnQO1zw6bv3jnPrDoaB8#Echobox=1653318235%20%20--

The Great Recession in 2008 pushed struggling Americans to rely more heavily on dollar stores and prompted other shoppers to visit them for the first time. Now, more than a decade later, a similar pattern is showing up at US discount chains as shoppers try to manage record-high gas prices and the fastest growth in inflation in 40 years. To be sure, the economy today is in a much better place than it was during the financial crisis 14 years ago. Just about anybody who wants a job can find one and wages are rising at their fastest pace in decades. Other economic indicators remain strong. But inflation has surged, with the Consumer Price Index rising by 8.3% in the 12 months ending in April. This means the cost of essentials is eating away at workers' fatter paychecks. Consumer spending is still strong, say top retailers including Walmart (WMT) and Target (TGT), but many customers are changing their purchasing habits. More consumers are balking at buying bigger-ticket items like electronics and furniture and switching their spending to necessities, such as food and household staples. This spending shift benefits dollar stores, which mainly sell food and everyday items in smaller sized packages. Since the Great Recession, three dollar chains have grown faster than nearly any other retailers, adding thousands of new stores, often in underserved areas. They've also widened their product selection to lure customers away from pharmacies, convenience stores and supermarkets. Dollar General (NYSE listed as: DG), the largest US dollar store chain, is seeing its core customers, those with household incomes under US$40,000 a year, "start to shop more intentionally," CEO Todd Vasos said on an earnings call last month. Gas prices at $5 a gallon are leading some customers to focus on driving to stores located closest to their homes, Vasos said. This is an advantage for Dollar General, which has around 19,000 stores and is often the only retailer in some rural towns. Even customers with higher incomes are beginning to shift more of their purchases to the chain, he said. "Shopping patterns are definitely changing, and we're seeing it happen right before our eyes." Dollar General plans to add more US$1 items as well as lower-priced, private-label brands to its shelves, the better to appeal to cash-strapped shoppers. Dollar Tree (NYSE listed as: DLTR) said that customers stressed with higher rent, gas, heating and food bills are increasingly turning to its stores. The chain, which targets slightly higher-income consumers in the suburbs and recently raised its base price from $1 to $1.25, said customers are "going to come to Dollar Tree and Family Dollar now more than ever" in response to these pressures, CEO Michael Witynski told analysts in March. (Dollar Tree owns Family Dollar.) Dollar Tree's 25% price hike hasn't deterred shoppers, despite backlash from some loyal customers. Sales at Dollar Tree's stores open for at least one year increased 4.4% last quarter compared with the same stretch last year. Other discount chains also say they're attracting new customers seeking cheaper alternatives. "Consumers are clearly feeling pinched by inflation and looking to stretch their grocery dollar," R.J. Sheedy, president of Grocery Outlet (GO), said last month. "We have seen more new customers shopping us." See here for more: https://edition.cnn.com/2022/06/08/business/dollar-stores-inflation/index.html

Discount Retail Chain Lidl Germany (owned by the German Schwarz Group) is now providing professional moving companies via its online shop. As the "Lebensmittel Zeitung" reports, the discounter is cooperating with the startup Movinga. According to its own statement, Lidl is the first German grocer to be active in this area. Customers have a wide range of bookable services on offer. The standard includes loading and unloading the transport vehicle and driving to the destination. In addition, you can hire the helpers to assemble furniture or pack the boxes. New Lidl offer: Discounter customers receive advantages Those who book via the Lidl website can look forward to a bonus. Customers receive a 100 euro discount and premium insurance for all packages. With this offer, Lidl is further expanding its service division on its website. In addition to mobile phone tariffs and photo printouts, there have also been electricity tariffs for some time. See here for more: https://www.chip.de/news/Neues-bei-Lidl-Ungewoehnlicher-Dienst-jetzt-beim-Discounter-buchbar_184289689.html?xing_share=news

British shoppers swapped branded items for cheaper own-private label products and turned to value ranges to help manage grocery inflation which soared to 8.3% in the four weeks to June 12, its highest level since April 2009, industry data showed on Tuesday. Market researcher Kantar said prices are rising fastest in markets such as butter, milk and dog food, while falling in spirits. It said supermarkets' sales of branded items fell 1.0% over the four weeks year-on-year, while sales of own-private label products rose 2.9%, boosted by strong performances from German-owned discounters Aldi and Lidl, which have extensive own-label repertoires. Kantar said sales of value ranges, such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty, grew by 12.0%. The comments on consumer behaviour echoed those from market leader Tesco last Friday. Kantar said that based on its latest data, the average annual grocery bill in the UK is on course to rise by 380 pounds (US$465). "This is over 100 pounds more than the number we reported in April this year, showing just how sharp price increases have been recently and the impact inflation is having on the sector," said Fraser McKevitt, head of retail and consumer insight at Kantar. Kantar said store footfall jumped by 3.4% over the latest four weeks, while online fell to its lowest proportion of the grocery market since May 2020 at 12.0%. Digital orders fell by almost 9% in June. “As well as the return to pre-COVID habits, this drop could also be the result of shoppers looking to cut costs by avoiding delivery charges," said McKevitt. Kantar said supermarket sales fell by 1.9% during the 12 weeks to June 12 year-on-year, but were up 0.4% in the latter four week period. Market leader Tesco and Aldi and Lidl were the only groups to increase their market share on a sales value basis over the 12 weeks. Only the discounters increased sales. Sales during the week of the queen's Platinum Jubilee (to June 5) were 87 million pounds (US$ 71 million) higher than on average in 2022, Kantar added. Source: Kantar (US$1 = 0.8171 pounds) See here for more: https://money.usnews.com/investing/news/articles/2022-06-21/britons-switch-to-own-label-and-value-ranges-to-fight-inflation

Discount Retail Chain Aldi Germany (German family owned) has reduced numerous fresh meat products from mixed minced meat to beef steak. The discounter passes on falling purchasing prices to customers and made a contribution to the weakening of inflation, said a company spokesman on behalf of Aldi Nord and Aldi Süd in Essen about the price reduction, about which the "Bild" newspaper had previously reported. Aldi's step is also likely to have an impact on large parts of the other trade. Because many competitors are still based on the inventor of the discount. Germany's largest supermarket chain Edeka announced accordingly: "We also value a good price-performance ratio and will adapt the prices for some meat products to the new market situation in the coming days." Similarly, the discounter Netto belonging to the Edeka Group commented. The competitor Rewe said: "We are constantly in discussions with our suppliers in terms of cost situation and market development and of course pass on possible price reductions directly to our customers." Pound of minced meat for less than four euros Recently, the prices for meat and sausage had even increased more than that for food as a whole. In May, the inflation for meat and meat products was 16.5 percent compared to the previous year, as the Federal Statistical Office announced. That was twice as high as the inflation rate of 7.9 percent. 11.1 percent more was due for food in May. The price cuts are noticeable in the wallet in the barbecue season: the price for 500 grams of mixed minced meat dropped from Aldi from 4.59 euros (US$4.7) to 3.99 euros (US$4.1). Bratwurst from the pig in the 400 gram pack was reduced from 3.49 (US$3.59) to 2.99 euros (US$3.1). The price for a kilo of beef steaks fell from 27.99 euros (US$28.8) to 24.99 euros US$25.7). The upward trend in the meat prices seems to be broken. "After there was initially a significant increase in the market at the beginning of the year, we are currently seeing falling basic prices, especially in pork," said Aldi. This is not least due to the still high overcapacity in Germany. There are a number of reasons for the large range of meat production. Meat consumption in Germany has been declining for some time. According to the Federal Agency for Agriculture and Food, it was 55 kilograms last year. Ten years earlier it was 7.8 kilograms more per person and year. Instead, the business with vegan and vegetarian meat replacement products is booming. In addition, the high inflation apparently spoils the desire for sausage, chops and steaks. "Despite the good barbecue weather, the demand does not really get going," the AMI agricultural information service observed. After a representative Forsa survey published a few weeks ago, 42 percent of people in Germany reduced their meat and fish consumption to cook more economically. In addition, the former flourishing export business of the German meat industry still suffers from the outbreak of the African swine plague. See here for more: https://www.spiegel.de/wirtschaft/unternehmen/lebensmittelpreise-aldi-senkt-ueberraschend-preise-fuer-fleisch-a-6c5a9cd1-d3da-4d9b-8d78-da7af0f76f8d

Discount Retail Chain PEPCO Group (WSE listed and owned by South African Steinhoff International) a dynamically developing Pan-euro European network of non food discount stores of multi-stores, owner of Pepco and Dealz brands in Europe and Poundland in Great Britain, today published selected operational results for the third quarter of the financial year ended on June 30, 2022. The most important achievements in the third quarter The group's revenues in the third quarter amounted to EUR 1,210 million (US$ 1,221 mio), reaching EUR 3,582 million (US$ 3,613 mio) accumulated, which means an increase from the beginning of the year by 17.4%, assuming a permanent exchange rate. A strong increase in the group's revenues in the third quarter by 17.1% y/y assuming a permanent exchange rate, powered by the results of the Pepco network, which recorded an increase of +28.5% y/y. Particularly good results were achieved by Pepco in Hungary, the Czech Republic and Serbia. Group revenue growth dynamics in the third quarter in comparable conditions ("LFL") at 4.9% total: - Pepco: +7.3% LFL - Poundland group: +2.0% LFL All group brands continued the opening program of new stores, this year 350 new stores have arrived (not counting the closing of 59 Fultons stores) Implementation of priority strategic goals The group continued the program of accelerated expansion of stores, which is the largest factor in the creation of values ​​in the group, and remains on the right track to achieve the updated goal, which is the opening of 450 new stores in the 2022 financial year: - Pepco Group: 115 new stores open during the third quarter (not counting the closing of 16 Fultons stores) - Pepco: 109 newly opened net stores, including 40 stores in Western European markets, i.e. in Austria, Italy, Spain and Germany. In the third quarter, the modernization of 82 stores was completed, a total of 668 modernizations were carried out from the beginning of the year, thanks to which they gained a new schedule and surroundings, which contributed to the increase in LFL sales and improving the perception of stores by customers. In March 2022, a pilot in Spain began, offering a full range of Pepco clothing, general purpose and quickly transferable goods in selected stores. The pilot was extremely successful, and the first customer reactions, taking into account the significant increase in their satisfaction, were very encouraging. In connection with the above, it was decided that this new format is the best solution for the group's clients on the Spanish market. The existing Dealz stores in Spain will therefore be transformed into Pepco stores, and where the available space will allow it to be supplemented with FMCG goods. Continuation of good commercial results In the third quarter, the turnover remained at a high level, mainly due to the Pepco network, with the support of solid results of the Poundland/Dealz network. Pepco revenues in the third quarter of the 2022 financial year increased by +28.5% y/y assuming a permanent exchange rate and by +7.3% in LFL. In the Poundland group, the increase in revenues in the third quarter of the 2022 financial year was +3.8% y/y by assuming a permanent exchange rate and by +2.0% in LFL. Compared to the period before the Covid-19 pandemic, i.e. with the 3rd quarter of the 2019 financial year, the average sales in PEPCO stores during the quarter increased by +9.2% in LFL. In the Poundland group, the average sales for the third quarter of the 2022 financial year increased by +5.6% in LFL approach compared to the period before Pandemic, i.e. the 3rd quarter of the 2019 financial year. In the face of the inflationary pressure on the entire market, the group invests in its price offer and maintaining a different discount offer on the market. The continuous concentration of the group on reducing operating costs allows them to maintain the position of the price leader. In addition, in this context it is the fact that the discount market throughout Europe is currently much larger than in 2007-08, during the previous financial crisis, which means that many more customers know this format of stores and is more often shopping in them. Although trade conditions are still difficult, the group is convinced that constant development is possible. Unless there is a significant deterioration in the macroeconomic environment, the group remains on the right track to include another good year, as expected. Commenting on the results, Trevor Masters, the General Director (CEO) of Pepco Group, said: The group has another quarter of development and solid commercial results, possible thanks to the further implementation of our successful, proven strategy. We are pleased with the implementation of our expansion plans in Spain, which is the first step on the road to providing the best offer of a group of more customers than before. In this way, we can use the advantage of our wide offer of the entire Pepco group, thanks to which we are even more effective and effective. I would like to take this opportunity and thank all our colleagues in the entire PEPCO group for hard work and constant commitment to work for our clients. Despite the difficult market environment, PEPCO continues to speed up and implements an effective growth strategy based on our four key pillars: the pursuit of to be a larger, better, simpler and cheaper one. We remain sure of the forces of our proposal for customers, market positioning and our ability to create values ​​long.' The group's financial statements were prepared based on the auditor unexplored for the period three months completed on June 30, 2022. In this context, the Pepco segment offering products at various prices and with the leading participation of clothing presents results based on calendar months as part of a three-month period ended on June 30, 2022, while the segment of the Poundland group with unified price levels of quickly transferable products gives results mainly based on commercial weeks and the 13-week period ended on June 26, 2022. Revenues were not examined by an auditor, with foreign currency revenues over the average exchange rate from the month in which they were generated. The increase in revenues is reported based on the establishment of a permanent exchange rate. The increase in LFL revenues is defined as an increase in revenues year -on -year for open stores for more than a year and is presented based on the establishment of a permanent exchange rate. Absolute revenue in LFL and LFL growth is not corrected by the impact of pandemic in both current years. Pepco group The PEPCO Group has existed since 2015 and consists of two strong, independent discount retail networks - Pepco and Poundland - the latter operates in the international arena under the Dealz brand. These networks are supplied by the global PGS company, also belonging to the Pepco group. Pepco and Poundland operate on the markets of many strongest European economies. The PEPCO Group currently has about 3,800 stores in 17 countries, including in Great Britain, the Republic of Ireland, Spain and in the region of Central and Eastern Europe, employing about 38,000 employees. After more than 14 years of continuous development, PEPCO currently serves over 20 million customers per month, offering clothing for the whole family, household and toys at the lowest prices. The brand's headquarters is located in Poznań. The company employs approximately 20,000 employees in 15 European countries, and is the most present in Poland, Romania, Hungary and the Czech Republic. The first 14 Pepco stores were opened in Poland in 2004. In 2013, Pepco expanded its activity to the Czech Republic and Slovakia, and in 2015-2017 opened shops in Croatia, Hungary, Lithuania, Romania and Slovenia. Since 2018, the company has stores in Latvia, Estonia, Bulgaria, Italy, Serbia and Spain and Austria. In the period of the analyzed three months, the company opened a total of 140 new stores under the Pepco banner. Pepco is widely recognized as one of the strongest brands and the most dynamic companies in Poland. He regularly wins the Forbes Diamond Award as one of the fastest growing companies in the country and the Superbrands award for quality and trust among Polish consumers. Recently, Pepco has been recognized as one of the best employers in Poland in 2021. Poundland and Dealz Since the opening of the first store in Burton-Upon-Trent, towns north of London, Poundland has built a network of almost 900 stores in Great Britain and the Republic of Ireland, offering goods of the best brands and excellent quality own brand products. Awarded by the magazine Retail Week with the title "Value Discounter of the Year 2019", the network currently employs approximately 18,000 employees who serve over seven million customers every week. Poundland offers thousands of high quality products, over 1,000 known brands in 17 categories of articles, including food and drinks, health and beauty, household, gardening, DIY, pets, stationery, books, DVD and toys. Most articles in Poundland stores cost one pound, but the network has also expanded the range at prices above and below one pound. In Great Britain in about 450 larger stores, Poundland offers a clothing brand Pep & Co. The PEP & CO brand has been present on the market since 2015, a full range of women's, male and children's fashion, introducing a new style to Poundland with a simple, low prices of products from the Family Fashion category, which is difficult to find on local shopping streets. From August 2020, the PEP&CO brand also includes home articles that quickly found customers' recognition as their style and quality. Pep & Co Home is a modern, fashionable, unique decorative articles and home products. Their introduction to the offer coincided with a thorough change in the method of exhibition and sales in Poundland stores. Over 250 Poundland stores are also currently offered cooling and frozen products. The number of facilities in which they will be sold will increase over the next two years to over 645. This is the result of taking over the Fultons Foods network and investments in the amount of 25 million pounds (US$ 30 million). PEP & Co was nominated by Retail Week for the own brand award for 2019. Since the launch of the first store in 2011, the Dealz brand has created a network of over 200 stores in Ireland, Spain and Poland, offering customers a wide selection of over 1,000 products of well-known brands and own private label brands. Dealz offers customers a simple and direct price model known from Poundland, offering a unrivaled value for money. See here for more: https://retailnet.pl/2022/07/14/pepco-group-podsumowuje-wyniki-za-iii-kwartal-staly-wzrost-i-postepy-w-realizacji-strategii/?utm_source=Newsletter+SCF+News+%7C+Retailnet.pl&utm_campaign=3209cc5ad7-EMAIL_CAMPAIGN_2022_07_15_07_00&utm_medium=email&utm_term=0_92db217ba7-3209cc5ad7-30085812

Discount Retail Chain Lidl Ireland (owned by the German Schwarz Group) has become the first retailer in Ireland to use prevented ocean plastic (Pop), a new form of fresh food packaging using “ocean-bound plastic”, that would have otherwise ended up in marine environments. The Pop has been recycled and reintroduced into its packaging of fish products. Working with its Cork-based supplier Keohane Seafoods, Lidl has moved five fresh fish products into this innovative packaging. A full rollout is due to be completed by the end of July. The initiative is part of Lidl’s commitment to ensure 50 per cent of packaging is made from recycled materials by 2025. Lidl Ireland’s responsible sourcing manager Cáit Lynch said: “We want to assure our customers that by shopping with us they are selecting responsibly sourced products while also helping to protect our oceans. From removing plastic pollution to protecting fish stocks, we’re committed to making a difference.” Up to 90 per cent of plastic packaging reaching the ocean, enters from coastlines in developing regions such as southeast Asia. This recycling, she added, would prevent almost 19 tonnes of plastic from entering the ocean per year, equivalent to almost 750,000 plastic water bottles. In addition to clear environmental benefits, the use of Pop also has societal benefits, she noted. “The collection of these bottles equates to approximately a year’s worth of well-paid work for an average bottle collector in predominantly poor coastal regions across southeast Asia.” Salmon lines Lidl is also set to become the first retailer in Ireland to carry products with the GGN label. The consumer label will feature on seven Keohane Seafoods fresh salmon lines, it stands for certified, responsible farming and transparency, and offers consumers consistent and relevant assurance about the responsible farming of these products. Products bearing the label come from farms with production processes that are independently certified and verified as being produced in line with responsible farming practices covering food safety; environmental sustainability, animal welfare, traceability, and worker wellbeing. Accompanying the logo on product packaging is a unique 13-digit identification number that can be entered into the GGN label portal to trace the origins of the product. “The addition of the GGN label onto these fresh fish products for the first time in Ireland is also an important step in offering enhanced product transparency to our customers,” said Lidl Ireland senior buyer Anna Ferguson. Since beginning its partnership with Lidl more than 11 years ago, Keohane Seafoods has become one of Ireland’s largest quality seafood processors and now employs a workforce of more than 220 employees. It signed a €20 million deal (US$ 20.6 million) with Lidl earlier this year. An Investment in new packaging machinery in 2021 made it possible to reduce the size of 11 of Lidl’s own-brand fresh fish trays, while the weight of the trays has been reduced by 21 per cent, thereby removing 28 tonnes of plastic from Lidl’s supply chain annually. Keohane Seafoods managing director Colman Keohane added: “All our seafood is sourced from responsibly managed fisheries and farms. And with the support from the team at Lidl through our involvement in the Lidl supplier engagement programme, we have been actively innovating to reduce the environmental impact of the range from reducing pack sizes to now launching ocean-bound plastic packaging.” See here for more: https://www.irishtimes.com/business/farming-food/2022/06/30/lidl-the-first-retailer-in-ireland-to-launch-prevented-ocean-plastic-packaging/

Discount Retail Chain Netto Nord Germany (owned by the Danish Salling Group) has a store network of 342 locations developed during its 30 years presence in Germany. The Corona Pandemie gave Netto Nord a large sales boost after years of stagnation. The growth was approximately 10 percent, which makes sales of approximately 1.25 billion euros (US$ 1.29bn). In 2021, sales could be easily improved with approx. 1 percent plus. Netto is a subsidiary of the Danish Salling Group with around 6,000 employees in Germany. According to the company, 65 people are employed in the administration in Stavenhagen, around 200 in logistics. For 2022, it is almost impossible to give a more precise sales forecast in terms of all trading companies. The Ukraine War, Delivery problems for raw materials, increased food prices and high inflation quotas, cause precise statements to the current financial year 2022. The price sensitivity of customers continues to grow... In addition, there is the effect that customers have generally become more price-sensitive, which Netto Nord can also observe in its stores. Customers are more important than ever. It is all the more important to keep an eye on your regional suppliers for net, as this area is very important for net. Here it is important to avoid delivery bottlenecks as best as possible. Despite unsafe sales forecasts, Netto wants to expand its store network. Three new locations are currently planned, so that the total number increases to 345 stores. Not all stores have changed to the Netto 3.0 concept. Around 200 stores are currently converted. The new market concept goes in the direction of better look for the customer, in the middle of Scandinavian aesthetics. The customer is to be presented with a new shopping experience and together with a design concept based on the Danish roots of the food discounter. So far, Netto has had additional sales after the retrofits and is satisfied with the success. The company also wants to improve the range policy. This means that ranges should be better and more specifically optimized in the city and country branches. The Danish sister company is also a role model for Germany The Danish sister company, which has already implemented this policy in a 250 sqm market, could be a model. Here, even in smaller areas, the non-food range should be kept as low as possible, since the space for it is not available in small shops. Netto also wants to control its central transactions from Berlin after the summer. For this purpose, the administrative areas that are currently located in offices in Stavenhagen and in the Brandenburg Wustermark would move to Berlin. For this purpose, HQ office space on the techno campus in Berlin-Charlottenburg had already been rented. The move should be completed by around the end of 2023. So far, Netto has been the only retail chain that is located in the former eastern German state. The company's administrative areas have so far been distributed to the two warehouse locations in Wustermark in Brandenburg and Stavenhagen in Mecklenburg. The DCs there remain. In Wustermark, the storage area is to be expanded in order to supply more stores. The warehouse in Stavenhagen remains. Netto is making good progress in the north of Germany, it remains to be seen whether the Danish discounter will eventually start expanding in the whole of Germany. See here for more: https://www.supermarkt-inside.de/netto-nord-traut-sich-was/

Discount Retail Chain Lidl Poland's (owned by the German Schwarz Group) recently announced its new distribution center will be located by the city of Bytom, at the border with the city of Piekary Śląskie. The investment is currently at the stage of applications for administrative consent. As part of the investment, it is planned to: 1. Construction of a warehouse hall with social and office facilities and loading and replacing places in the first part of the project (with an area of ​​approx. 69,500m2) 2. The part of the second part is planned to increase the area of ​​the object to approx. 80,500m2; Workforce for the new Lidl DC of 400 employees It is planned that at the operation stage work on the premises will take place 24 hours a day 7 days a week. It is estimated that employment will be about 90 office employees and about 300 employees working in the hall. The designed DC will conduct receiving, storage, picking and shipping the store assortment. The storage will take place on pallets and on standard high storage shelves. Photovoltaic cells with an electrical power of max. 1500 kW As part of the analyzed undertaking, it is planned to produce electricity from solar energy using photovoltaic cells with an electric power at max. 1500 kW The cells will be installed on the roof of the designed warehouse. The total land plot area for the investment is about 253,400m2. The building area after the implementation of the first stage of construction will be approx. 69,500m2, while after the implementation of the second stage of construction (DC enlargement) will be about 80,500m2. Lidl's final works before launching its other Distribution Center in Dobroszzyce In mid-May this year. The discounter reported that construction works in the other new distribution center in Dobroszyce are coming to an end. The first deliveries to stores will leave the center in the second half of 2022. Ultimately, the facility will supply Lidl Polska stores located mainly in the Lower Silesian Voivodship. The investment will create 300 new jobs locally. The Lidl Polska Distribution Center in Dobroszyce will be one of the most modern facilities of this type in the network portfolio in Europe. The planned usable area of ​​the new facility is about 68,000sqm. See here for more: https://www.dlahandlu.pl/detal-hurt/wiadomosci/lidl-z-duza-inwestycja-na-slasku-miejska-lokalizacja-nowych-magazynow,109460.html

Discount Retail Chain Aldi (Aldi Süd, Aldi Nord), German family owned, made it into the Kantar Brandz 'Top most valuable brands worldwide' for the first time this year. On the 98th place, the discounter increases its brand value by 20% to US$ 21.3 billion. Congratulations to the newcomer in the ranking! See here for more: https://www.youtube.com/watch?v=7e5ULGB16Mw