The A-brands in Dutch supermarkets are going through a difficult period. Due to the higher prices of products, consumers are more likely to opt for the private label than for premium brands. At the request of radio station BNR, research agency GfK calculated how great the loss of turnover of A-brands can be and comes to an estimated loss of turnover of 1.5 billion euros (USD 1.6 Billion) this year. According to the market researchers, the share of private labels has increased by 6 percent over the past few months at the expense of A-brands. This fits in with the strategy of consumers to try the cheaper private label variant and thus save money. The price difference between A and private labels was 45 percent two years ago, but that has steadily increased. A-brands have increased their prices by an average of 10 percent in recent months, while private labels have become on average 7 percent more expensive. On balance, supermarkets themselves notice relatively little of the shift in consumer preference when it comes to total revenues. According to GfK, the total annual turnover of Dutch supermarkets will remain unchanged at around 45 billion euros (USD 48 billion) in 2022. But supermarkets do see the shift as an opportunity to promote their own brands. They take a larger margin on those products than on the A-brands, while they can temper the price increases for customers. An additional problem for the manufacturers of A-brands is that it seems to be difficult to win back buyers. They are already having a hard time communicating the added value for their brands, and with the widening price difference that will only become more difficult. According to brand expert Paul Moers, this means that A-brands must focus more on advertising campaigns, he tells BNR. See here for more: https://www.businessinsider.nl/a-merken-verliezen-omzet-huismerken-supermarkt-hogere-prijzen/

Discount Retail Chain ALDI Spain (German family owned) has completed the expansion works of its logistics platform located in Dos Hermanas (Seville), with which 14,040m2 of surface are incorporated, to the more than 24,000m2 initial infrastructure. The expansion, which began in the middle of last year, has led to the creation of 20 new direct jobs, as well as the generation of indirect employment. This extension will allow ALDI to face its growth for the coming years in the areas of Andalusia and Extremadura with the best guarantees. In fact, the supermarket chain is carrying out a strong expansion plan in Spain and by 2022 it plans to open 50 new supermarkets. With a total built area of ​​more than 38,000m2, the Dos Hermanas logistics center currently has 69 loading docks and will be able to store up to 20,000 pallets. Sustainability and energy efficiency Within the framework of ALDI's commitment to energy efficiency and respect for the environment, the logistics platform has the installation of LED lighting and its own waste management system. In addition, the center will have an area of ​​more than 10,000 m2 of photovoltaic panels that generate up to 600 kWp of the electricity consumed daily. The logistics center is also working to obtain the BREEAM sustainability and energy efficiency certificate, which guarantees not only sustainable construction, but also the reduction of its impact on the environment, and comfort and health for those who work or use the building. Expansion in Andalusia and Extremadura In Andalusia, the company opened a new supermarket on April 27 in the city of Malaga, in the San Luis industrial estate, with which it reached a total of 87 establishments in the region. Today, Andalusia is the Spanish region with the most ALDI supermarkets and was also the one with the highest number of openings in 2021, with a total of 11 new stores . In Extremadura, the supermarket chain has a total of 6 establishments, and maintains the objective of continuing to grow in the region in the future. In fact, on the same day, April 27, the company also opened a new store in Badajoz, on Avenida de Elvas, 12, replacing the previous store located on Avenida Adolfo Diaz Ambrona s/n. The change of location responds to ALDI's desire to offer the best service to its customers, with a more modern and spacious establishment, with 450 m2 more sales room than the previous supermarket. See here for more: https://elcorreoweb.es/de-tiendas/aldi-finaliza-su-obra-en-dos-hermanas-creando-20-nuevos-puestos-YY7919144

A new report from Daymon has suggested that retailers need to rejuvenate their private brand innovation strategies or risk falling behind the competition, in an increasingly complex, constantly-changing environment. 'Daymon's study, Global Perspective On Private Brands – 2022 Private Brand Intelligence Report', says that there are three core reasons why retailers need to remain vigilant with their private brand innovation strategies to build on increased consumer trial and trust; to establish differentiation; and to maximise brand and banner loyalty. Increased Trial And Trust Consumers are becoming 'brand-agnostic', Daymon's study claims, with some 89% of consumers in the US now trusting private brands just as much or more than national brands. With this in mind, shoppers are more likely to try additional products within a retailer's portfolio. 'However, as shoppers are constantly searching for new items to deliver on their expectations, retailers must continue innovating, with yesterday’s Private Brands unable to deliver to today’s shoppers,' Daymon's report says. Establish Differentiation Differentiation is key in a competitive retail environment, and previous Daymon research has shown that competing retailers’ assortments overlap by as much as 98%, largely due to the high proportion of national brands on the shelves of each. Private label offers an opportunity to maximise that differentiation; as Daymon puts it, 'The power of private brands rests in their ability to offer shoppers items that can only be purchased at their banner, with consumers returning for their unique and differentiated offerings.' Customer Loyalty Another core reason why innovation is crucial for private brands today is in order to secure customer loyalty, beyond the product portfolio. Research from Daymon has shown that a strong private brand offering creates banner-loyal customers; some 75% of loyal private brand shoppers in the US have a 'preferred' store that they shop at, while 48% of UK consumers agree that private brand range is important when selecting where to shop. According to Daymon, private brands 'have the power to make or break banner loyalty', and will have a lasting effect on how retailers reshape their innovation strategies to determine their future success. Exceeding Shopper Expectations "When it comes to separating yourself from the competition, Private Brands stand as the key to providing truly differentiated offerings with a customised shopping experience," commented Michael Taylor, President, Daymon. "Shoppers appreciate the benefits of Private Brands and are returning time and time again to retailers that provide for their unique needs and preferences, with increased trial furthering brand and banner loyalty. "With consumer loyalty directly dependent on who can provide them what they want, when they need it, and at the right value, Private Brands are in the perfect position to come out on top. But as the evolution of the shopping experience shows no signs of slowing down, Private Brands must update strategies to meet consumer expectations for the long term or risk losing out to the competition." See here for more: https://www.esmmagazine.com/features/private-brand-innovation-needs-to-come-to-the-fore-says-daymon-174591

Discount Retail Chain Aldi (German family owned) is in the process of entering this high-turnover online grocery store. For some time now, customers have been able to order special buy goods online, but only non-food items such as household goods and electronics, not everyday essential groceries. In the future, groceries and other important everyday products will probably also be available online. The starting signal is to go from Düsseldorf, where the first joint operating company of Aldi Süd and Nord is based. The newly founded Aldi E-Commerce Verwaltungs- GmbH is a joint venture in which North and South each have a 50 percent stake. Responsible for Aldi Nord is Moritz Scheffler, who previously worked for the auditing company PWC PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft is a German company based in Frankfurt am Main). For Aldi Süd, the managing director is Kai Schmidhuber. Previously DHL Manager and also Chief Digital Officer at L'Oreal. Many online activities - “Aldi Now” Due to many online activities by Aldi in countries such as the USA, Switzerland, Great Britain and Ireland, Germany is now supposed to “go online”. In Zurich, the largest city in Switzerland with around 420,000 inhabitants, customers have been able to use the new online delivery service there for several months. To this end, the market is cooperating with the start-up company Annanow. According to the discounter, deliveries via “Aldi Now” can be scheduled up to 14 days in advance and are individually controlled via hourly delivery windows. "Click & Collect" also at Aldi! In Ireland and Great Britain, for example, around 200 Aldi items can be ordered via “Click & Collect”. Click and Collect refers to the process of picking up an online order from a brick-and-mortar retail store. Aldi is also making great strides in the United States. The “Grocery Pickup” offer there is to be expanded to around 1,500 stores by the end of the year. What is special in the USA, as well as in Great Britain and Ireland, is that special parking spaces are even available for customers to pick up. Aldi, for example, works in Switzerland already with the e-commerce software Spryker, which is not yet being used in Ireland and Great Britain. Spryker is one of the younger and more innovative systems in the e-commerce market and calls its in-house shop system "Commerce OS", i.e. the "operating system for trade". The new online offer will probably later also be based on the Spryker e-commerce software platform. There is no more detailed information here. In the USA, Aldi already offers the grocery delivery service Instacart. Instacart is an American Internet company headquartered in San Francisco. Offering grocery delivery and pickup in 5,500 cities across the United States and Canada through a website and mobile app. Instacart has partnerships with over 350 retailers. These have more than 25,000 grocery stores, including Aldi. Customer orders via the Internet are picked by Instacart employees in the stores and then delivered to each customer. Aldi Süd now wants to enter the highly competitive online grocery market with power. You can be curious... See here for more: https://www.supermarkt-inside.de/e-food-bei-aldi-sued-im-anmarsch/

Discount Retail Chain ATB Corporation (owned by the Ukrainian business men Borys Markov and Hennadiy Butkevyc) has announced that it is reopening soft discount stores in occupied territories in the country and is expanding operations in peaceful regions. The company added that it is primarily focusing on restoring operations of temporarily closed stores, launching new warehouses and logistics sites, opening new stores, and creating new jobs for Ukrainians. Reopening and expansion So far, the company has already reopened more than 100 stores in Kyiv, Chernihiv, Sumy and Kharkiv regions. In total, about 1,000 of the company's stores are currently operating across Ukraine, it noted. The retailer has also opened two new warehouses, which are supporting its warehousing and transportation requirements in the western, northern and central regions of the country. Currently, the company's warehousing and logistics needs are being met by eight distribution centres throughout Ukraine, the company added. In addition, ATB also opened two new stores in Busk and Zolochiv in the Lviv region. The company has created approximately 1,000 new jobs and restored 4,000 jobs in this period. ATB Corporation employs more than 60,000 people across its business. Future plans In the near future, the retailer plans to reopen more than 50 stores in Kyiv and Chernihiv regions and launch a new 14,000 square-metre distribution centre in the Kyiv region. It also aims to open seven new stores in the western region of the country, primarily in the city of Lviv, Uzhhorod and Chernivtsi, and restore thousands of jobs. Last week, the Ukrainian retailer announced plans to directly import food and essential goods to its stores from Poland, the Baltic States and Turkey to ensure the continuous supply of goods. See here for more: https://www-esmmagazine-com.cdn.ampproject.org/c/s/www.esmmagazine.com/amp/retail/ukraines-atb-continues-to-reopen-stores-in-occupied-territories-172787

Discount Retail Chain Aldi UK and Ireland (German family owned) CEO Giles Hurley has reiterated the discounter’s value promise amid the cost of living crisis. Hurley has written directly to customers citing recent price analysis in the Grocer 33 as evidence of the savings to be found at Aldi compared with the big four and Waitrose. “The cost of everyday life is rising for everyone, but I want to reassure you that Aldi is more committed than ever to our long-standing price promise to our customers,” he wrote. “That’s why every time you shop with us you will find amazing Aldi prices, not just on a handful of products each week. “Don’t just take my word for it, take a look at our latest appearance in price analysis from The Grocer magazine.” Aldi was guest retailer in the Grocer 33 on 19 March. The discounter came out 12% cheaper than runner-up Asda and 34% cheaper than Waitrose. “That’s a saving of between £7 (US$8.7) and £27 (US$33.7) on a typical basket of 33 everyday essentials at Aldi, these differences could really add up over the course of a year,” said Hurley. He added: “With everyone looking at ways to save, our message to you is clear. Why pay a premium at a more expensive supermarket when you can get award-winning quality products for low prices at Aldi? It’s why we’re encouraging people not to change their lifestyle, but instead change their supermarket. “Millions of shoppers have already switched to Aldi this year and we appreciate every single customer that visits our stores.” Latest Kantar data shows Aldi was the fastest growing supermarket in the 12 weeks to 17 April, with sales up 4.2%, closely followed by Lidl at 4%. More than one million extra shoppers visited Aldi and Lidl over the 12 weeks compared with the same period last year, boosting Aldi’s market share to a record 8.8% and Lidl’s to 6.6%. See here for more: https://www.thegrocer.co.uk/aldi/aldi-boss-writes-to-customers-reiterating-value-promise-as-inflation-bites/667102.article?utm_source=Daily%20News%20(The%20Grocer)&utm_medium=email&utm_campaign=2022-05-04&c=&cid=DM1003694&bid=1924900390

Discount retail chain Lidl (owned the German Schwarz Group) is switching the entire battery-electric vehicle fleet of a logistics hub to fuel cells powered by green hydrogen, making it the first of its kind in Europe, according to a press release. Around 100 forklifts or 80 percent of the vehicle fleet in the German retailer’s logistics centre in Carquefou, in Western France, already operate on green hydrogen, and the rest is to follow by the end of the year. The centre will be supplied with 75 kilograms of green hydrogen per day generated 75 kilometres away by company Lhyfe using wind energy. Lidl said refuelling times had been decisive in its decision to opt for fuel cells. “The refuelling time for a hydrogen vehicle is only 2 to 3 minutes compared to several hours for a lead-acid battery,” the company said. Hydrogen powered vehicles are available 97 percent of the time compared to approximately 50 percent with lead-acid technology, Lidl said, adding this required much fewer charging or refuelling spaces, and allowed a reduction of fleet inventories. Lidl said it is considering the medium-term deployment of green hydrogen fuel cell vehicles at other logistics centres, or using it to power part of its delivery truck fleet. The Lidl example shows that fuel cell vehicles can offer significant advantages in niche applications where charging times are key, such as logistics centres that operate around the clock even if modern battery-electric vehicles use lithium-ion batteries, which can be charged much more rapidly than lead-acid models. Most experts believe that the majority of commercial vehicles will be battery-electric in the future because they are much more energy-efficient than fuel cells. They also argue that hydrogen will remain a scarce resource and should be used in sectors that cannot be electrified directly, such as industry and aviation. But in contrast to passenger cars, which look to become almost exclusively battery-electric, the technology race in heavy goods transport is not settled yet. Truckmakers increasingly bet on battery trucks, but some also pursue fuel cell technology. See here for more: https://thedriven.io/2022/04/02/german-retailer-switches-battery-electric-logistics-fleet-to-green-hydrogen-fuel-cell/

Discount Textile Retail Chain Kik (owned by the German Tengelmann Group) will soon have competition in Germany. A new textile discounter is opening its first branch in Berlin. Here's what you need to know now. Pepco (owned by Steinhoff International and GPW listed) has already made a name for itself as a textile discounter in Europe. The company currently operates 2,400 stores, around 1,000 of which are in Poland alone. After expanding to Italy, Spain and Austria, Pepco now wants to start with stores in Germany, as the company revealed in a press release last autumn. While the first Pepco stores opened in Austria in autumn 2021, it took a little longer in Germany. But meanwhile the first branch in Berlin is in the starting blocks. Pepco wants to open there on April 28, 2022, as reported by the German “Lebensmittel Zeitung”. Other locations are to follow later this year. "We are very pleased to be opening the first branch in Berlin in April and can hardly wait for our premiere in Germany. With our promise of quality, unbeatable prices and our well-known, highly valued customer service, we are convinced that the products we offer to meet the expectations and needs of customers in Germany," says Patrick Steiger, Operations Manager at Pepco Germany. The textile discounter initially wants to hire around 200 people, but over the next few years more than 13,000 jobs are to be created. This also includes the subsidiary discounters Poundland and Dealz. Pepco wants to offer inexpensive textiles, cosmetics and household goods in German stores. See here for more: https://www.chip.de/news/Kik-bekommt-Konkurrenz-Neuer-Textil-Discounter-in-Deutschland_183798700.html

Discount Retail Chain Aldi, Lidl and many other discounters have increased their prices for many products by more than six percent. The price of cooking oil has even risen by 17 percent and that shouldn't be the end of it. The consumer expert Chehab Wahby expects a continuous increase in discounter prices, reports the daily German newspaper Handelsblatt. "The discount is the driving force behind prices in the market," says Wahby. The lower income groups in particular will suffer from the price increases, the expert continues. Figures from market research Gfk also show that 85 percent of consumers fear that prices will continue to rise. Before the Ukraine war, the figure was 77 percent. Robert Kecskes, industry expert at GfK, explains: "There is huge uncertainty among the population, which is surprisingly reflected in purchasing behavior." This is also reflected in the consumer climate, which, at minus 26.5 points, has reached its lowest measured value of all time. “Customers' budgets have fallen due to general cost increases,” says Kecskes. The discounters benefit from the prices Consumers are now looking for cheaper alternatives, which means that the share of retail brands in total sales has risen again for years in the first months of 2022. The discounters Aldi, Lidl and many others are benefiting from the rising food prices and expanding their market share. In March, the shops lost only four percent in sales. "In every economic crisis, the share of discounters has increased by three to four percent and it has not decreased significantly since then," explains Wahby. See here for more: https://www.businessinsider.de/wirtschaft/so-profitieren-aldi-lidll-und-co-von-den-preiserhoehungen-a/?utm_source=rss&utm_medium=rss&utm_campaign=so-profitieren-aldi-lidll-und-co-von-den-preiserhoehungen

Consumers feel high inflation and limit their grocery shopping. They also visit them more often at discounters, such conclusions can be drawn from the data from the Nielsen IQ agency. As many as 7 out of 10 consumers declare that they know the prices of food products, and 8 out of 10 look for a promotion when shopping, according to the latest data from the Nielsen IQ agency. Although the share of products at the promotional price in the shopping cart is slightly lower than a year ago, it still remains at over 32%. Polish consumers surveyed by Nielsen IQ declare that they change stores if they find a product at a promotional price in another. In 2021 and 2019, this indicator was 28%. The search for promotion is also followed by general consumer savings caused by high prices. 51 percent claims to only buy basic products and forego luxury goods. Overall, 34 percent. of consumers buy less than the year before. In recent years, this indicator was at the level of 27 and 26 percent. As Nielsen IQ analysts point out, the increase in the FMCG basket is primarily due to rising prices, not volume. The latter even fell by 1.4 percent in the first quarter of this year. The position of individual sales channels is also changing. Along with the growing importance of the price of products, more and more consumers decide to buy food at discount stores, while the importance of the small format decreases. This is also followed by the growing sales of private label products. In the first quarter of 2022, their annual sales increased by more than 10%, while branded products only by 6.5%, and one should remember to adjust for high inflation. Already 42 percent. of consumers declare that own private branded products are a cheaper alternative to branded products. Previously, this ratio was 45 and 47 percent. See here for more: https://www.wiadomoscihandlowe.pl/artykul/wysoka-inflacja-uderza-w-konsumentow-ograniczaja-zakupy-i-siegaja-po-marki-wlasne

Discount Retail Chain Aldi Netherlands (German family owned) will launch the new 'Net Zo' (translated as 'just as') campaign in the Netherlands, which focuses entirely on potatoes, vegetables and fruit (fruit and vegetables) from Dutch soil. It is the first time that fresh produce is central to a campaign of the discounter. With this campaign, the supermarket shows that, perhaps contrary to what consumers think, ALDI's fresh produce does indeed come from the Netherlands. And it is just as fresh and qualitative as elsewhere, but for an ALDI price. This Net Zo campaign, starring the Dutch grower, can be seen in all ALDI marketing channels. “Not everyone thinks of ALDI when it comes to potatoes, vegetables and fruit from Dutch soil. We are going to change that with the very first fruit and vegetable campaign. We are going to show the whole of the Netherlands that a lot of ALDI potatoes, vegetables and fruit are brought to the customer's plate with just as much care and love, fresh from our own soil. But then for an ALDI price. Moreover, the campaign is a good moment to give our own Dutch growers a well-deserved podium,” says Gijs de Jong, Category Manager Fruit & Vegetables at ALDI in the Netherlands. ALDI's Dutch growers have a prominent role in the new 'Net Zo' campaign. For example, the strawberry grower from Bemmel in Gelderland plays the leading role in the TV commercial and stories from various growers can be read in the folder and on the website. The growers will also be featured on ALDI's social media channels through a playful activation. The fruit and vegetable campaign is a logical continuation of the steps ALDI took earlier in the field of fruit and vegetables. In November last year, the discounter gave the go-ahead for the roll-out of the new store formula, in which potatoes, vegetables and fruit are positioned upon entering the store. The campaign is the next step in which ALDI gives the fresh assortment a prominent place. See here for more: https://www.duurzaam-ondernemen.nl/agf-van-nederlandse-telers-centraal-in-aldis-nieuwste-net-zo-campagne/

Discount Retail Chain Lidl USA (owned by the German Schwarz Group) opened an urban store in New York’s Harlem. While most Lidl stores are in suburban locations, this store, on Frederick Douglas Blvd., is in a densely populated area. It is the company’s first store in Manhattan and its 24th in New York State. The store is on two levels in a high-rise building, with an expanded lower-level area. Lidl spent over US$5 million to develop the store model for this setting, and it is easy to shop. Convenience items are on the main floor while the bulk of grocery items are on the lower level. There is also a general merchandise section on the lower level. Lidl’s policy of very low prices continues to amaze. It is especially important since the merchandise is of high quality and often includes recognized national U.S. brands. Whether it is Angus beef for 4.49/lb. or four 32 oz. bottles of Coke for US$5, or grapes for US$0.99/lb., the low-priced specials are attracting customers and business was brisk on a recent Wednesday afternoon. The low prices were reinforced by a display of two shopping carts comparing Lidl’s prices with Whole Food’s prices. Lidl’s prices were over US$50 lower than its grocery competitor for the same items. According to the University of North Carolina (UNC) Kenan-Flagler Business School, prices on Lidl’s wine assortment were up to 45% lower than other nearby grocers as well. As I walked through the store, I noted specialty foods from various countries including France and Italy, and of course Germany, the home of Lidl. To me, a special section of the store was the bakery; it offers breads, pastries and others items baked throughout the day. As a result, the store smells like a fresh bakery when you enter. The store is newly fitted out with an easy-to-shop layout that will mean a faster and more convenient shopping experience for customers. I was told that the EPA recognized Lidl stores for their environmentally-friendly design. The only suggestion I have: that the check-out associate might have thanked me for shopping at Lidl. Lidl has teamed up with both the Food Bank for New York City and the Community Kitchen and Pantry in Harlem to be a supportive new business in the community. Very talented art students created unique designs for a limited edition tote bag celebrating the opening. Ella Alburez (age 13), Marley Ablurez (age 15), Guadelupe Mejia (age 14), Aralanna Hoover Lluesma (age 14) and illustrator A.K.Lovelace (who is a professional comic book artist) designed illustrations for the tote bags. They are for sale in the store and revenues are to benefit Food Bank and Community Kitchen and Pantry in Harlem. Lidl, a German company owned by the Schwarz Gruppe, operates over 11,500 stores worldwide. It is active in 32 countries and employs more than 341,000 associates. It opened its Arlington, Va. headquarters in June 2015 and opened the first U.S. store in 2017. There are now more than 175 stores in the United States. See here for more: https://www-forbes-com.cdn.ampproject.org/c/s/www.forbes.com/sites/walterloeb/2022/04/22/lidl-urban-store-a-success-in-new-yorks-harlem/amp/