It could have been the most spectacular entry of a German retailer into #China  in years. As the company confirmed upon inquiry, the drugstore chain Müller had explored expanding into China with its own physical stores. The first branch was slated to open in Shanghai in the fourth quarter, with up to 500 locations envisioned. However, the retailer has now pulled back. "For the current phase, Müller has decided to focus its expansion efforts on Europe, particularly on the newly entered markets of Slovakia and the Czech Republic," a spokesperson stated. Further European countries are currently under evaluation. Experts like #Marc Houppermans, Drs  consider this the right move. While the market offers potential, the risk would have been very high. "The classic Müller concept — a wide assortment of well-known brands at good prices — is considered too easily replicable in China," said the Executive Partner of Discount Retail Consulting. Chinese retailers are able to "scale multi-brand concepts faster and more efficiently." #ALDI SÜD  has demonstrated that it is possible for European retailers to expand in China with their own stores, while others have failed spectacularly. What do the China experts here on LinkedIn think: Are there German formats that could achieve sustainable success in China? And what are the biggest hurdles? Handelsblatt Martin Benninghoff Read more: Unternehmen: Drogeriekette Müller stoppt Expansionspläne in China #smartdiscount #china #mueller #drugstore #expansion #growth #marketintroduction #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter

With discounters booming in the cost-of-living crisis, what’s motivating Lidl’s move to slow down expansion in the UK? What’s going on at Lidl? Its sales are soaring, market share is growing, and yet for reasons widely unknown, it seems to be taking its foot off the gas on its once ambitious expansion plans. As The Grocer revealed in February, Lidl has halved its projected store openings for the year from the usual 50-plus to 25, in a slowdown some suggest could extend until 2026. Lidl said it was focusing on growing warehouse capacity, as indeed it has been, with its biggest DC ever due to open in Luton in August. But many believe there is more to the explanation. Could an under-pressure Lidl begin to edge up pricing? “Lidl GB has probably been asking for about €1bn. investment to be signed off (for 2023), and I believe they managed no more than €250m,” says Ronny Gottschlich, who was Lidl’s UK CEO from 2010 to 2016. “This is clearly signaling a change in the German HQ’s appetite and ability.” The Grocer asked Discount Retail Consulting (DRC) in Germany their vision Why the change? Experts point first to higher interest rates, which will be impacting Lidl after years in which it has taken advantage of low rates to fuel rapid international expansion. “Lidl has had very good development over the last 10 - 15 years because of the extremely low interest rates, meaning they could get money very cheaply,” says Marc Houppermans , a former Aldi Netherlands board member, now Executive Partner and owning together with William Snollaerts (ex board member of Aldi Netherlands) Düsseldorf-based Disc ount Retail Consulting (DRC), which helps investors and retailers set-up and scale up discount models across the world. “They grew faster than Aldi in a lot of countries.” However, the financing method is a crucial point of difference from Aldi. “Aldi is fully private equity financed, it’s all its own equity, from the founding Albrecht families,” says Houppermans, who claims the Albrecht family predicted their advantage would become clear during an economic downturn. “When we worked at Aldi, we said already ‘wait till the moment comes when interest rates go up, because then Lidl will have a hard time’.” “They will be cherry picking. Where do I put my money now, where can I get the highest return?” "Lidl will now be looking to change the ratio of equity to debt, and “that means you have to keep more profits in your organisation and not invest as much”, says Houppermans from DRC. The debt of Lidl’s parent the Schwarz Group is estimated at €20bn. - €23bn. “And you can just imagine what that means, if the interest rates have been increasing by one or two percentage points.” In the case of the UK operation, the group achieved profits of just £41m from £7.8 bn. revenue in the year to 28 February 2022, according to its latest account. “In the east of Europe, you do not see the same slowing in expansion of stores,” says Snollaerts from DRC. “Lidl has high returns in those businesses, whereas in the western European countries, the returns are significantly lower, with the labour costs, the rental costs, the competition being mostly higher. “So, they will be cherry picking. Where do I put my money now, where can I get the highest return?” There has also been a change in tack on investment since 2021 after the shock resignation of CEO Klaus Gehrig at Lidl’s owner, Schwarz Group, according to Houppermans. Owner Dieter Schwarz, then 81, took over the helm himself at the time, filling in until the internal promotion of Gerd Chrzanowski as CEO in December of that year. “Gehrig was someone who’d been strongly leading Lidl’s and Schwarz’s businesses almost for the whole 50 years of Lidl’s existence, who suddenly moved out, for new and younger future-proof management,” says Houppermans. After five years as Lidl GB CEO, Christian Härtnagel returned to Germany in late 2021 Schwarz Group – which also owns the supermarket chain Kaufland – has since become “more agile”, with a greater focus on IT where it feels it can create additional value across the whole group, Houppermans adds. Recently published accounts show the group invested €8bn. in strategic projects and digital business segments in the year to 28 February 2023, including the expansion of Schwarz Produktion, with activities focused primarily on safeguarding supply chains, as well as on store expansion and modernisation. “That’s the way it is – we don’t follow Aldi on every price anymore” A new culture The changing approach is said to have extended to a new leadership culture. “It’s a much stricter view on return on investment now,” an industry source in Germany tells The Grocer. “The old way was: ‘if you’ve got a case for it, then do it’ and if it didn’t work, people were sacked for it. That was the way it was in the first decades. Now, a case has to be proven a lot more stringently and argued with return-on-investment calculations. It’s become a more mature business in its approach.” Paul Foley, who was Aldi’s UK & Ireland CEO from 1999 to 2009, says a good explanation for the issue of Lidl’s slowing expansion is the “newish top management in Neckarsulm [Germany] identifying where the performance is weaker than average and demanding local management address this”. Lidl’s share of the UK grocery market has shot up from 6.9% to 7.7% in the past year, and Aldi’s from 9% to 10.1% [Kantar 12 w/e 14 May 2023]. But along with the influx of new customers, the cost of living will also have brought added pressures for both discounters, says Gottschlich. “As much as they love more customers coming to them, more of them are shopping more private label.” Lidl’s share of the UK grocery market has shot up from 6.9% to 7.7% in the past year Not only that, but more will be trading down from premium-tier own label. And for all their value and own label focus, for the discounters, just as for other retailers, that downward trading means lower margins, Gottschlich adds. Higher margins also come from the non-food middle aisle, but “customers are shying away from those products in these inflationary times”, he adds. “Aldi is experiencing the same pressures. It isn’t an easy time for either.” Indeed, Aldi has been slow to open stores this year too. Despite plans to open 40 throughout 2023, and a commitment to spending £400m on store development during the year, its UK number remained at “over 990” from January until June, when it finally announced five new sites to begin trading within the next few weeks. But while Aldi will also be “scrutinizing” its openings, its finance structure gives it “a little more resilience”, says Gottschlich. Lidl, on the other hand, is likely coming under pressure from above to “lower costs and increase sales and margins in existing space”, says Foley. Indeed, in Germany, there have been reports of some surprising price movement at Lidl this year. In February, Lebensmittel Zeitung (translating as ‘Food Newspaper’), reported examples of Lidl straying above Aldi on price. That included Lidl continuing to sell organic milk at €1.45 after Aldi had dropped its price to €1.35. “Lidl shows the customers they are almost a normal supermarket with lower prices” William Snollaerts from DRC, says. Lebensmittel Zeitung chief correspondent Manfred Stockburger tells The Grocer he was informed by a source at Lidl: “‘That’s the way it is – we don’t follow Aldi on every price anymore.’” Lidl did, however, drop its prices following Stockburger’s enquiry. The development was not entirely surprising to William Snollaerts from Discount Retail Consulting, who believes Aldi and Lidl have always differed slightly in their pricing ambitions: Aldi has aimed to be as cheap as possible, while Lidl has sought to be as cheap as Aldi. It’s a subtle distinction “Aldi is the price setter and Lidl is adjusting to it,” he says. Lidl has halved its projected store openings for the year from the usual 50-plus to 25 Houppermans points to its range size as a sign of Lidl’s softer discounter heart. “In Aldi you see about 1,700 - 1,800 SKUs, and in Lidl about 2,400, excluding the in & out [temporary] assortment.” Lidl also has larger stores, he notes. Its UK property brochure appeals for units up to 26,500 sq ft, compared with Aldi’s upper limit of 20,000 sq ft. Snollaerts says: “What you see over the past 10 or 15 years is Lidl shifting bit by bit more to the middle of the retail landscape. “Aldi started as a hard discounter, then it became less hard discount – but it stuck for longer to that type of discounting. Well, Lidl was already evolving to be more soft discount. “I think that’s also the power of Lidl. They show the customers they are almost a normal supermarket with lower prices.” So, could we even see an under-pressure Lidl begin to edge up in pricing in the UK in pursuit of margin growth? “It would be very strange to me to believe Lidl was preparing to take pricing to a higher level than Aldi,” says Foley. Houppermans thinks it would be a high-risk, potentially irreversible move. “If you start increasing your prices, you find going down again very hard because your organisation has adapted to it,” he says. A scan-as-you-shop app called Lidl Go was briefly available to download from app stores But, if prices cannot be increased, another way to improve margins is in lowering costs. “Lidl is doing a lot in improving operational excellence,” says Houppermans. “They’re still investing, just at the moment not so much in the stores but more in the DCs, in production facilities, in actually having their supply chain be more efficient and leaner. “They will try to gain more margin that way, because otherwise they will lose the low pricing positioning. “ In all of Europe, they’re still opening DCs, or scaling up existing DCs, having more and bigger warehouses, and making them more efficient and automated" , says Snollaerts. The view aligns with Lidl GB’s explanation in February. “Whilst this is a slowing on store openings, we are focusing on investing heavily in our warehouse capacity: opening Luton, completing extension works on our Bridgend and Belvedere sites, and looking for a new site for the south,” a spokeswoman said at the time. In May, the discounter submitted planning permission for another 600,000 sq ft DC in Gildersome, Leeds. Better serving its stores gives Lidl a way to ease margin pressure in them while keeping prices low. But in the meantime, new ones may have to wait. Read article in The Grocer: #smartdiscount #lidl #aldi #thegrocer #uk #expansion #interestrate #privateequity #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting About Discount Retail Consulting (DRC) : - international operating agency, specialized in discount retail; - offices in Germany, Nigeria and Thailand; - provides food and non-food retail strategies and business processes; - greenfield and brownfield projects; - provides the specific hands-on practical expertise; - helps investors, retailers and FMCG manufacturers to grow their lean retail business; - distinguishes from other retail consulting companies, as DRC is a hands-on expert in developing and implementing Discount Retail on spot.

Discount Retail Chain Aldi UK has insisted it still has no plans to launch a loyalty app, after scanners were spotted at its checkouts identical to those used by Lidl f or its rewards scheme. Lidl Plus users scan the app at checkout to claim exclusive discounts and personalised rewards. The app has been credited by Kantar with helping fuel Lidl’s sales success, at the same time Aldi’s growth rate has shrunk dramatically. A version of a rewards scheme from Aldi is widely anticipated, and the same hardware, used to scan QR codes in an app on a mobile phone, has been seen at its checkouts in the UK. However, the discounter was adamant the devices had nothing to do with loyalty and were instead for electronic gift cards, though the scanners are in only some of its stores. New Kantar data this week had Lidl as the fastest-growing bricks & mortar grocer for the 10th month in a row, with sales up 8.1% year on year in the 12 weeks to 9 June, and its market share up from 7.7% to 8.1%. Meanwhile, Aldi’s growth was stalling at 0.8%, having slowed steadily since September 2023, when it was 17.1% up year on year. Aldi’s market share is also down year on year for the fourth month in row, from 10.2% to 10% in the latest set of Kantar data. Marc Houppermans , executive partner at Düsseldorf-based Discount Retail Consulting and a former Aldi Netherlands board member, said Aldi was working on an answer to Lidl’s app at international level but “will do it differently as many Lidl customers complain that they do not get the same discounts if they do not have the app”. Houppermans pointed to a current promotion by Aldi in Germany, where it has also maintained no loyalty scheme is planned, as a clue. The promotion, which launched on 14 June to tie in with the Euros, offers shoppers a €5 discount voucher when spending €40 or more. It is a rerun of previous coupon promotions but Aldi is now also “working at the same time on an app system”, according to Houppermans. Lidl Plus launched in the UK in 2020 and is used by 38% of shoppers. Read more: Aldi denies loyalty app plans after scanners spotted | News | The Grocer #smartdiscount #aldi #loyalty #program #app #stores #uk #drc #discount #retail #consulting #discountretail #discountretailconsulting #google

Mr. Houppermans, why are #Aldi and #Lidl in Germany currently lagging behind those of the major supermarket operators in terms of their development? Due to the Covid-19 crisis, the discounters are concentrating on the operative business, which is at the expense of expansion and modernization. #Edeka and #Rewe, on the other hand, score highly in their function as local suppliers with a full range of products. At the same time, the perceived price difference between discounters and supermarkets is significantly reduced. Among other things, because the latter are expanding their own brand ranges. Edeka and other leading supermarket chains have also clearly worked on the attractiveness of their in-out ranges. Where do you see the reasons for the sometimes double-digit growth rates of the discounters in Eastern Europe? In general, Eastern European consumers prefer to buy from Western European chain stores and have a particularly high level of trust in the top brand “#Germany”. For success, however, it is crucial to understand the respective country market and to build up your own local ranges of excellent quality. Then there is the “#supermarketization” trend. Lidl has listed several hundred items in the region in a very short time - mostly national brands - and thus appeals to more affluent sections of the population. This means that the Schwarz discounter is perceived as a better “value-for-money” alternative than other retailers. The Eastern European markets are also more lucrative than the home market from an investment point of view. The cost level is significantly lower in comparison, but the price level is often similar. An #Ebitda of 10 percent is not unusual here. In your opinion, how does the pandemic affect the development of discounters? For many consumers, the current situation means economically uncertain future prospects. When shopping, therefore, the focus is primarily on high-quality basic items at a low price. The processing should also take place as quickly and stress-free as possible. Discounters enjoy a high level of trust with customers and can offer exactly this combination. Do you see new opportunities for hard discount formats like the Russian retailer #Mere? For the emerging countries in Eastern Europe there are market opportunities for such hard discount formats with sufficient investment capital, especially since the local discount market leaders are also moving upwards. For the more developed markets of Western Europe, I doubt whether the conventional hard discount concept can appeal to a wide range of customers in the long term. Possibly as a niche format in cities. And how do you see the expansion of German discounters abroad? A discounter without growth is like an airplane without kerosene. I assume that we will see more acquisitions in the future than before. Both Lidl and Aldi have gained their experience in this area over the past few years. This not only applies to entering new markets, but also to acquisitions in existing foreign markets. For Aldi in particular, this offers a strategic opportunity in countries where market share has come under pressure. See here for more:

Discount Retail Consulting was featured in an interview on the German television program Galileo, which is produced and aired on the ProSieben network (at 5.28 minutes). The series highlighted Aldi's substantial growth in the USA and was broadcast nationally last week. Aldi, a prominent player in the grocery retail industry, has secured its position as one of the top 3 retailers in terms of store count, showcasing remarkable growth in recent years. Despite its rapid expansion, Aldi's market share currently hovers below the 5% mark, positioning them as a key player within the top 20 in the industry. The company's strategic approach to expansion and commitment to providing quality products at competitive prices have contributed to its swift ascent in the market. With a strong focus on customer satisfaction and innovation, Aldi continues to gain traction and solidify its presence in the highly competitive grocery retail landscape. Enjoy watching: https://youtu.be/1OpmTv28tm0?si=f6IDcP-10x6XB8hS #smartdiscount #usa #germany #tv #germantv #prosieben #galileo #series #epic #growth #aldi #drc #discount #retail #consulting #discountretail #retailconsulting #discountretailconsulting #google

DRC interview for German national TV SWR - ARD Discount Variety Retail Chain Action is a so-called non-food discounter - the offer ranges from DIY supplies and textiles to toys, sports and decorative items. Action attracts around 20 million customers every week. Action operates more than 3,000 stores in thirteen European countries. Each store offers around 6,000 products, a mix of brands and private labels as well as no-name products. What convinces action fans: Two-thirds of the items cost less than 2 euros. In addition, Action wins over its customers with the surprise effect. The discounter is constantly changing its offer. Every week, 150 new products are added to the stores. Where does the discounter Action come from? In 1993, the two Dutchmen Gerard Deen and Rob Wagemaker opened a non-food discounter in the small Dutch town of Enkhuizen and called it "Action". Four years later, 17-year-old Hajir Hajji started working in one of the then 12 Action stores, as a part-time job during her studies. In the meantime, she is the top boss of Action. Action opened its first store in Germany in 2009 in Schüttdorf, Lower Saxony. There are now over 600 stores in Germany, and 59 new stores were added last year alone. In 2011, the investor 3i joined the discounter and gradually took over most of the shares. With the investor's entry, Action's rapid expansion begins. Prices: How cheap is action really? Marc Houppermans works for a discounter giant in Germany and the Netherlands and now advises discounters worldwide. "Basically, Action has the goal of being the best and lowest in price," says the discount expert. That's how many customers perceive it. But is Action's image as a bargain discounter justified? In addition to many no-name products, Action's shelves also include numerous branded products. Balloon gas, for example, costs only 17.99 euros here. The same product can also be found at other providers - much more expensive everywhere. At Globus, for example, the product costs a whopping 12 euros more at the time of our research. Action offers some branded products at low prices, but mostly also private labels. According to the discounter, there are around 70 - including, for example, "Hotel Royal", "Saucee" or "Super Finn". According to Action, the first private labels were introduced a little more than 10 years ago. Toilet paper from Action versus Rewe, Aldi & dm The market research institute YouGov surveyed 20,000 Germans about their non-food purchases. Among other things, the product category "household" was particularly popular with Action. That's why we took a closer look at the price-performance ratio of toilet paper. Our result: The Action private label is significantly cheaper than Hakle's toilet paper. At first glance, Action also seems to beat the own-brand products of Rewe, Aldi and dm in terms of price. But since there is less paper on the roll with Action's own brand, Action loses this price advantage again and is ultimately on a par with toilet paper from Rewe, Aldi and dm. Action, Rossmann, Kaufland: Which shopping basket is the cheapest? For this check, Marktcheck compiles a shopping cart with private labels from various categories: from sunscreen to washing-up liquid to cleaning wipes. This shopping cart is compared with similar products from Rossmann and Kaufland. Differences in package sizes are converted. At Rossmann, you pay the most at 35.91 euros. At Kaufland, a little less. And at Action only 31.76 euros. Action is not the cheapest for every product, but it can still clearly win the shopping cart price check. How can action products be so cheap? Action says it buys 44% of its assortment in Europe. The rest comes from Asia. How does Action manage to offer its products so cheaply? Heiko Großner, General Manager of Action Germany, says: "The main reason for the low prices is, of course, the volume we buy. On the other hand, we are of course also very cost-oriented and we try to eliminate all unnecessary costs and really be able to offer the cost advantages to the customer. We are sometimes surprised ourselves that products are offered elsewhere at expensive prices." Chinese online platformTemu - bargain or junk? Discount expert Marc Houppermans explains: "You often find products that are slow sellers or whose companies have gone bankrupt, which can be taken over for very low prices." For example, you can buy Lego cheaply at Action, but it can be old products. Heiko Großner also admits that there are promotions and discounts at market participants where you can buy items cheaper for a certain period of time. "If we find that we are permanently unable to offer an item at the same price as others, we would not resell that item," he says. How safe are Action electrical appliances? Action offers electrical appliances such as toasters, kettles or hand blenders at reasonable prices – some even cost less than 10 euros. Hendrik Schäfer and Daniel Schädel from the German Electrical Engineering Association take a close look at five products from the company's own brand "Home Essentials". "We have often found safety defects in products in this price category and that's why it's worth taking another look here," says Hendrik Schäfer. There is a GS mark on all products. The authenticity of the mark can be checked in the online databases of the testing laboratories. The discounter's household appliances are therefore tested by German test laboratories. For the experts, this is a real selling point. "The GS mark not only confirms the electrical but also the chemical safety of the product. And this is actually not always the case with this category of entry-level devices," explains Hendrik Schäfer. This ensures the quality of action Jens Madinsky, Technical Manager of Quality Management at Action, explains that the GS mark at Action is a minimum requirement for all items that run on 230 volts. According to Action, all own-brand products must meet the minimum legal requirements of all 13 EU countries in which Action is active. The advantage for Action: a product can be produced in very large quantities and sold in all European stores. "If in any country the requirement is stricter, like the European directive, it becomes our minimum requirement. All our products are tested in accredited test laboratories," says Jens Madinsky. In addition to legal requirements, the discounter is also oriented towards competitors, according to Jens Madinsky: "In terms of quality standard, the item must be at least as good as the competition." Action advertising: Unpaid online marketing by brand fans Action hardly invests in classic advertising, but benefits greatly from social media. Influencers give tips on bargains at Action and talk about their latest discoveries. "Of course, that's the dream of every retailer, that there are people out there who recommend me without me paying them," says marketing expert Karsten Kilian. Virality is the best thing you can think of in marketing. "They are credible, more convincing than if I say myself, I'm great, I have great bargains. This is what third parties say about me. That's the best advertising you can have." Action is much more popular than other markets and reacts to the latest trends in social media, the expert suspects. Karsten Kilian explains that Action has an eye on what is being discussed on social media and obtains these articles very quickly. By advertising influencers online who are not paid by Action, the company can save on marketing. "There are only a few Europe-wide influencers that we consciously address. And of course, that makes us proud that we can grow so organically and thus certainly invest a little less than other companies in terms of marketing," says Heiko Großner. What are the working conditions like at Action? Action employs a total of around 80,000 people, 15,000 of whom say they are in Germany. So far, there are no works councils at Action in Germany. The employees earn at least 15 euros an hour. There is a small Christmas bonus and a company pension scheme. In addition, the employees are shown opportunities for advancement. Some employees criticize that they are under time pressure at Action. For example, the time for putting away the goods is specified to the second. "It is very important to know how much goods are coming and how much time I need to put them away. That's why it's an orientation and planning aid for us in the branch," says Heiko Großner about the criticism. Sustainability at Action: Just greenwashing? According to its own statements, Action is trying to become more sustainable. For example, the discounter relies on seals for some raw materials, such as wood or cotton, or uses partially recycled plastic. Moritz Jäger-Roschko is an expert on sustainability at Greenpeace. In his opinion, the labels that Action uses are a clear case of greenwashing: "They don't change the core business model. Action thrives on creating artificial incentives to buy through cheap prices and short availability. And that simply clashes with the basic idea of sustainability." Jens Madinsky counters that Action tries to produce every item sustainably as far as possible and makes sure to use sustainable materials. Due to the large purchase quantities, this is also possible at a discount price. However, it is admitted to Marktcheck that Action has not yet achieved 100 percent sustainability everywhere. Action: Expansion on a grand scale Every weekday, an action market opens throughout Europe. According to the discounter, at least 370 stores are to be added this year. Action's location policy is very successful, new branches are quickly refinanced. The general conditions are always similar: about 700-1100 square meters of retail space, at least 30,000 inhabitants, many parking spaces, rather rural location, low rent. Despite low prices and steady expansion, Action is making a lot of profits. The non-food discounter is able to increase its sales year after year. Action's formula for success consisting of inexpensive products and a rapidly changing assortment seems to be working - surprises at a bargain price. Read more: Action: Ein Discounter auf dem Vormarsch #smartdiscount #action #germany #expansion #growth #development #customer #quality #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

One thing is clear: the price increase is not solely due to increased production costs, crop failures, or energy prices. The four major food retailers control 80 percent of the market, half of which is accounted for by Rewe, Edeka and the discounters. What pricing power do they have vis-à-vis food manufacturers or consumers? The report follows the journey of food from the producer to the supermarket shelf. Conversations with farmers and a look behind the scenes of industrial food production. Where can producers achieve the highest sales, and with which products do supermarkets generate the highest profits? How do branded products compare with private labels? Why are there such high price increases at "Ja!" and other retailers? The film explores the question: What does the price war look like between manufacturers, supermarkets, discounters, and consumers? And what options consumers have to influence this price war. See the whole TV programme via this link: https://www.zdf.de/play/dokus/zdfzeit-106/rewe-edeka-und-co-100?q-rewe #smartdiscount #germany #lebensmittel #zdf #zeit #producers #retailers #supermarkets #fmcg #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #aldi #lidl #edeka #rewe #cocacola

Discount Retail Chain Bara accelerates. Not with stridency, but with consistent numbers. It went from 479 stores at the end of 2024 to 533 in mid-2025 and 573 in September of the same year, that is, a net expansion of 94 units in nine months. In addition, there are 14 additional openings in February 2026. At the same time, FEMSA has already announced regional investments such as Morelia, for more than 120 million pesos and the generation of 200 direct jobs, and Nuevo León for 250 million pesos. There is something deeper behind this movement. The hard discount is not just a commercial bet; it is a reading of the economic moment. Bara operates with a focused assortment, high share of private label and adjusted cost structure, key variables in an environment where the consumer prioritizes price. It is no coincidence that the format is integrated into Proximity Americas as one of the vehicles for growth. Unlike other projects within the FEMSA group, Bara has three measurable advantages: lower regulatory burden than a bank, lower capital requirements per unit compared to traditional formats and a replicable model that has already proven traction in more than 570 stores. In other words, it is a business that FEMSA can scale with discipline and visibility of return. Priority is measured in openings There is also a strategic factor: segmented proximity. Oxxo dominates convenience; Bara begins to capture the expense of replacing the home. They do not compete; they expand the total ticket of the ecosystem. But in times of adjustment, one of the two formats is growing at double digits in units, while the other – the financial one – enters into regulatory pause. The messages from the managers reinforce this reading. Bara is not only "closeness and development"; is already one of the growing formats recognized in FEMSA's own annual report, with a focus on territorial expansion, operational efficiency and strengthening of its own brand. This doesn't mean that Spin is off the map. It continues to operate — accounts, remittances, loyalty — and maintains its user base. But his pause contrasts with Bara's dynamism. And in retail, the contrast matters: where there are constant openings, assigned CAPEX and sustained growth of units, there is usually priority. FEMSA is not abandoning financial innovation; is sorting out your bets. And in this reorganization, everything points to Bara becoming the spoiled project: less visible than Oxxo, less ambitious than Spin in narrative, but today more aligned with the environment, with expanding numbers and with the group's operational DNA. Sometimes, a company's future isn't in what's new, it's in what it grows — store by store. Read more: BARA Wins Over FEMSA - Retailers - Business & Technology Innovation #smartdiscount #mexico #expansion #growth #development #stores #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #gemini #harddiscount #hd

Discount Retail Chain Lidl Germany has teamed up with avant-garde designer Nik Bentel to develop a handbag inspired by a standard shopping cart. Here is what the branded fashion accessory looks like and how you can get your hands on one. It’s no secret that Lidl has a knack for fashion; their limited collections have thrilled younger audiences in the recent past. One of the discounter's last fashion ventures was the 2024 "Croissant Bag," inspired by Lidl's butter croissant, which sold out in just two minutes. Now, the company is causing a stir once again with an original handbag: the "Trolley Bag." As with the "Croissant Bag," Lidl collaborated on the accessory with U.S. avant-garde designer Nik Bentel, whose creations regularly go viral. The discounter and Bentel presented the new bag at London Fashion Week, and it’s expected to draw even more attention. The "Trolley Bag" leans heavily into the design of a shopping cart, including a handle in the brand's signature yellow and blue. Additionally, the handbag features a coin-token keychain that actually fits into Lidl shopping carts. Strictly limited handbag in shopping cart design to be raffled off next week With this unusual "it-piece," Lidl aims to tap into the "Utilitarian Fashion" trend, which describes clothes and accessories that blur the lines between everyday objects and luxury items. "We couldn't resist the chance to collaborate with Lidl again," says Bentel. "It's incredibly exciting to transform the most unexpected objects into fashion statements—that’s our style through and through. The Lidl 'Trolley Bag' is our latest interpretation of the daily grocery run and the ultimate shopping companion. It's playful, practical, and designed to stand out, whether on the runway or in the checkout line." Is this for real or just a prank? I must admit, this thought spontaneously crossed my mind while looking at the fashion collections from Aldi and Lidl. But there is much more behind the fashion offensive and the textile "logo-fireworks" of the two German discount giants. It is an attempt to land a major brand coup, with fairly good prospects of success. Anyone hoping to snag one of the strictly limited "Trolley Bags" will need luck. The bags will be raffled off exclusively on Nik Bentel’s website starting February 26th. We can only wish all the high-fashionistas out there the best of luck. Read more: Fashion-Statement: Lidl verblüfft mit Handtasche im Einkaufswagen-Design - HORIZONT #smartdiscount #germany #lidl #trolleybag #inout #promotion #design #trend #designer #NikBentel #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd #avantgarde #itpiece

Discount Retail Chain ALDI China is hitting the "accelerator." From infrastructure upgrades to major retail milestones, the discounter is solidifying its footprint in the Chinese market through a three-pronged strategy: supply chain efficiency, store expansion, and localized product innovation. Strategic Expansion & Milestones ALDI recently hit several key growth markers that underscore its commitment to the region: Logistics Infrastructure: In February, the launch of the Wuxi Warehouse—ALDI’s second East China distribution center—enhanced supply chain reliability across Jiangsu. The 100-Store Mark: With two simultaneous openings in Zhenjiang this March, ALDI officially reached 100 stores in China, maintaining an impressive annual growth rate of over 40%. Partner Collaboration: The inaugural China Partner Conference in Suzhou brought together top-tier domestic suppliers to align on future growth and product standards. The "Product Power" Release: 200+ New Items On April 15, ALDI launched a massive wave of over 200 high-quality, budget-friendly products. Notably, 90% of these are ALDI private label brands, designed to offer premium quality without the "hype" markup. 1. Social Media "Viral" Flavors (9.9 RMB Price Point) ALDI is targeting trending snacks, ensuring stable quality at a fraction of the cost of proxy-shopper prices: Pretzel Bits (Sea Salt Caramel): Baked, 0 trans fats. Mature Vinegar Broad Beans: Featuring authentic Sichuan Baoning vinegar. Mixed Rice Crackers: The classic "international flight" snack favorite. Premium Sips: 100% Thai Coconut Water (19.9 RMB) and Blood Orange Juice (21.9 RMB). 2. Bold Innovations & Health Trends Collaborating with local suppliers, ALDI is introducing unique flavor profiles and health-conscious options: Gourmet Snacks: Black Truffle Crispy Rice Crust (13.9 RMB) and Spicy Crayfish Cashews with real meat (19.9 RMB). Unique Ice Creams: Wuchang Rice Milk and Yuzu Camellia flavors. "ALDI GOOD LIFE" Health Line: Modernizing Traditional Chinese Medicine (TCM) with Western Ginseng & Dendrobium tea and co-branded herbal drinks with heritage brands like Tung Hanh Chun. 3. Daily Essentials: "Three Meals a Day" The launch reinforces ALDI's role as a primary grocer with high-frequency fresh items: Protein: Australian grain-fed beef chuck and domestic Angus beef. "Diamond Bowls": Premium ready-to-eat meals like Black Tiger Shrimp & Slow-Stewed Beef (26.9 RMB). Local Comfort: Shanghai-style Scallion Oil Noodles and seasonal vegetables. Conclusion This massive product rollout signals a new chapter for ALDI in China. By staying "Rooted in the local, serving the community," ALDI aims to balance its rapid physical expansion with a steadfast commitment to quality, providing Chinese consumers with a shopping experience that is consistently time-saving, affordable, and worry-free. #smartdiscount #china #aldi #growth #expansion #business #assortment #stores #warehouse #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #gemini #harddiscount #hd

Discount Retail Chain Aldi Netherlands is now suddenly the fastest growing supermarket in the Netherlands. Renovated stores, a wider range of products and a smart response to low consumer confidence are at the basis. But whether this is the beginning of a real comeback, experts do not yet dare to say. The champagne – from Aldi's private label brand Veuve Durand, of course – will have opened at Aldi. Aldi is suddenly the fastest growing supermarket in the Netherlands, according to a recent report by market research agency Hiiper. The market share increased by 14 percent in 2025. This increase represents a jump in turnover of 300 to 350 million euros. Data from NielsenIQ point in the same direction. According to the market researcher, Aldi's market share grew from 5.3 percent in 2024 to 5.9 percent in 2025, a relative growth of more than 11 percent. At the number two, market leader Albert Heijn, the relative growth was a lot less. Although that also has to do with a larger market share. Lost lead The figures are striking, because Aldi lost market share for years. In the 90s, the supermarket was a phenomenon in the Netherlands, says food expert Peter Garstenveld, former editor-in-chief of trade magazine Distrifood. 'Aldi was the undisputed discount market leader. The golden combination of 'Aldi-Heijn' was very big at the time: the idea that you went to Aldi for the basic groceries and to Albert Heijn for the extra frills.' But after the turn of the millennium, Aldi began to slacken. Whereas in 2005 the supermarket still held almost 10 percent of the Dutch market (9.5 percent according to ACNielsen), the market share halved in the twenty years that followed. Over the past five years, it has fluctuated between 5 and 5.5 percent. 'Aldi lost its leading position because it more or less stood still,' says Garstenveld. 'Because why would you change a winning formula? The corporate culture was very conservative.' According to retail advisor Erik Hemmes of Retail Advies, this is especially true for Aldi Nord, which includes the Benelux. Aldi – which stands for Albrecht Diskont – was split in 1961 by the founders, the brothers Karl and Theo Albrecht. Aldi Süd is more progressive than its northern counterpart, says Hemmes. 'Many of the things that Aldi Nord is now introducing, Süd has already done years ago.' Garstenveld: 'In the meantime, Aldi Nord has also woken up and the company is catching up on some of that backlog.' No more cold box warehouses To begin with, the stores have been addressed. Under the name Aniko (Aldi Nord Instore Konzept), the stores have been modernized since 2016. This also includes innovations that, according to experts, are already the standard at other supermarkets. Garstenveld: 'Think of LED lighting instead of fluorescent tubes and the fruit and vegetable department at the entrance.' According to Hemmes, this is happening at an 'unprecedented pace'. Last year, 21 of the 481 stores in the Netherlands were renewed, and dozens more are scheduled for 2026. Stores that were not doing well have closed – although thirty new and relocations were done in 2025. In addition to more emphasis on fresh – fresh produce, fresh meat and fish, dairy and cheese – the new and renovated stores are equipped with wider aisles, lower racks for a better overview and more natural light. From a chilly box warehouse, Aldi had to become a fresh discount supermarket. We also know this strategy from that other German budget player: Lidl, which opened its first Dutch store in 1997. In recent years, the major competitor has cleverly repositioned itself from a price fighter to an affordable fresh food specialist, with a strong focus on vegetables, fruit and bread. With result: Lidl is now the third largest supermarket in the Netherlands with a market share of 11.6 percent (in 2024, since then the company no longer shares figures). With 440 stores, about 40 less than Aldi. Customers come more often and buy more This is possible because the store turnover at Lidl is much higher on average, explains Hiiper director Joep Smeets. "The range is larger: an average Lidl has a range at least twice as wide as Aldi." That works, Garstenveld adds. 'Discounters were traditionally intended to fill the pantry. With the focus on fresh, Lidl has increased the frequency of visitors enormously. Customers come there more often, and buy more.' Aldi also wants to become an one-stop supermarket where consumers can find everything they need. The company says that it has invested 'heavily' in the past two years in renewing and expanding its range, including private labels. More than 80 percent of the range was overhauled, and the basic range has also been expanded from about 800 products to more than 2,000. It is bearing fruit, Smeets sees. 'Aldi is not only growing because the supermarket attracts new customers, but lately people have also been spending more. In the third quarter of 2025, 9 percent more went into shopping baskets and in the fourth quarter 6 percent.' 'Fans of advantage' Yet you can still consider all this as a minimum lower limit to what modern discounters have to meet today. Aldi has put the basics in order, but also has the circumstances in place. According to Hiiper director Smeets, the growth spurt is mainly related to the 'persistently low consumer confidence'. 'Especially with groceries, the perception is that they have become very expensive. Consumers make price-conscious choices and then Aldi is one of the cheapest options.' That awareness is growing now that the discounter has started to make more noise about it. Aldi was always a closed stronghold. It is only in the past five years that the company has started to focus more on marketing and communication, and since 2024 – the year that Pieter Rozendaal, the new CEO of Aldi Netherlands, took office – the focus has been entirely on improving the price image. Garstenveld: 'For example, with the 'Fans of benefit' campaign that started last year.' Aldi even claimed to be the cheapest last year, because that was shown in price surveys by Kassa and the Consumers' Association in early 2025. Easy-to-understand story Only that was not the intention to advertise with it for a whole year. Aldi did, which earned the discounter a reprimand from the Consumers' Association. Aldi scrapped the claims, humbly promised improvement and donated 250,000 euros to the food banks to make up for it. But whether it is justified or not, consistent communication about the low prices does work, Smeets sees. 'Aldi has the image. The supermarket is benefiting enormously from consumer sentiment at the moment.' Aldi's brand new marketing and communication department wanted to say far too much at the start, Garstenveld sees. It was about assortment, about price, about sustainability – far too much for a chain where you can get your basic groceries cheaply. 'This story is easy to understand for consumers. You go to Aldi for the good price-quality ratio, period. And the range is also becoming broader and more modern. With products such as meal kits and fresh pizzas.' In that respect, Lidl has made it more difficult for itself, according to the food expert. 'Lidl is also sustainable and gives discounts – quite unique for a discounter – but then you have to have the Lidl app. Many customers think that's far too much hassle and not very transparant.' Not an immediate success The fact that Aldi was the biggest grower in the supermarket world last year is of course nice for the company. 'But that doesn't make it a success story,' says Hemmes. 'The real proof will only be provided in a year's time, when it becomes clear whether Aldi can maintain these growth figures.' Whether that will succeed, according to the experts, is 'coffee grounds'. Read more: Aldi is suddenly the fastest growing supermarket in the Netherlands #smartdiscount #aldi #netherlands #marketshare #growth #development #catchup #privatelabel #ownbrand #modern #aniko #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd

Discount Retail Chain A101's owner Yeni Mağazacılık A.Ş. has agreed with Sabancı Holding and Carrefour to take over CarrefourSA in Turkey. The Share Transfer Agreement transfer covers Sabancı Holding's 57.12 % stake in the company, as well as 32.16 % of Carrefour Nederland BV., a subsidiary of the Carrefour Group. With the completion of the transaction, the shares corresponding to a total of 89.28 percent of Carrefour sa's capital will be under the control of Yeni Mağazacılık A.Ş. Within the scope of the agreement signed between the parties, the transfer will be carried out based on the company value of 325 million dollars, based on the final share value to be calculated according to the net debt and working capital adjustments on the closing date. The transfer transactions will be completed subject to the fulfillment of all closing conditions, including obtaining the necessary approval by the Competition Board; thus, Sabancı Holding and Carrefour Group will not have any share in Carrefour sa. "WE AIM TO CREATE NEW GROWTH AREAS BY TRANSFERRING OUR EXPERIENCE" Underlining that the transaction in question is an important part of its long-term growth strategy, Erhan Bostan, a member of the Board of Directors of Yeni Mağazacılık A.Ş., said, "We prioritize creating sustainable value in the organized retail sector with our widespread store network throughout Turkey, strong supply chain and operational efficiency focus. This approach of ours; It includes not only expanding our existing operations, but also creating new growth areas through different business models and formats. In this context, we believe that the combination of Carrefoursa's deep-rooted history and strong store network with our group's retail experience offers significant potential. It is envisaged that A101 and Carrefour sa will continue their activities independently under different management structures, in separate segments and while preserving their own brand identities. In this direction, our main goal is to work together with all our stakeholders to ensure strong and sustainable growth in the business areas in which Carrefour sa operates and to create a diversified retail structure that reaches a wider customer base." "WE SHAPE OUR CAPITAL ALLOCATION ACCORDING TO THE PORTFOLIO STRUCTURE OF THE FUTURE" Sabancı Holding Strategic Investments President Gökhan Eyigünde underlined that they handle their portfolio with an understanding that goes beyond the traditional holding model, emphasizes agility in execution, and prioritizes creating sustainable value for its investors, and said, "This approach; It includes not only expanding existing assets, but also inflows and exits to the portfolio in line with our strategic priorities. In this context, within the scope of our evaluations and our strategic roadmap shared with all our stakeholders, we started the transfer process of Carrefour sa shares in the Sabancı Holding portfolio to Yeni Mağazacılık A.Ş. As part of our dynamic portfolio approach, this share transfer decision, which we took together with our 30-year-old partner Carrefour, is an important part of our vision to create a Sabancı that is much more focused on its future goals. In line with this vision, we shape our capital allocation not only according to today's needs but also according to the portfolio structure of the future. With the new steps we will take in the coming period, we will continue to strengthen our focus in areas where we see potential to create long-term value. Carrefoursa, which has broken new ground in Turkey since the first day it was founded, has also pioneered the development of organized food retail in our country. We have full faith that this flag, which we will deliver to Yeni Mağazacılık A.Ş., will be carried to much higher heights. In this context, we would like to thank all our colleagues, managers and stakeholders who have created value so far; We believe that this strong accumulation will continue to create value in the coming period." Read more: Yeni Mağazacılık Takes Over 89% Shares of CarrefourSA | PerakendeSektoru.com #smartdiscount #a101 #turkey #carrefourturkey #carrefoursa #acquisition #shares #yeni #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd