Discount Variety Retail Chain Dollar Tree store, famous for selling products for US$ 1, reported that it will raise its prices for the first time in 35 years to $ 1.25 for the first time. According to CNN, the retail brand specified that this decision is not due to "temporary or short-term market conditions" and the increase is permanent. The Chesapeake, Virginia-based chain, which operates similarly to the Prichos brand in Mexico, was one of the last remaining “dollar stores”. "Dollar Tree believes the time is ripe to move away from the $ 1 price constraints in order to continue to deliver extraordinary value to customers," the company said in a statement. He noted that this price increase will allow him to face increases in the costs of merchandise and higher operating expenses. The new booth will roll out to more than 2,000 new Dollar Tree locations beginning in December and the remainder throughout 2022. For 35 years, the company had managed to keep its prices low during inflationary periods. Although some items in its stores cost more than a dollar, Dollar Tree is mainly known for its products that sell for 21.58 pesos. The United States is experiencing a period of inflation amid the growth of its economy that has affected low-cost retailers. During October, inflation in the United States rose again beyond expectations and set new highs not seen in a long time. See here for more: https://www.entrepreneur.com/article/399220

Discount Retail Chain Aldi Germany (German family owned) had some bargains in store for Black Friday 2021. The top deals in the stores and in the online shop at a glance. Black Friday 2021 took place last Friday (November 26th, 2021). The day is now also one of the biggest discount days of the year in Germany. Cyber ​​Monday follows shortly afterwards. Shortly before Christmas, it is worthwhile for bargain hunters to keep their eyes open, because retailers such as Amazon, Media Markt, Saturn and Co. offer discounts. But the discounters Aldi and Lidl are now also involved. Many retailers not only have a number of offers on Black Friday, but also in the week before Black Week. Even with Aldi, there are some Firecracker offers. We provide an overview of the best deals in the online shop and in the stores. The discounter Aldi has some Black Friday deals in its stores and online shop. The Aldi online shop started with offers on Thursday, and on Friday there will also be Black Friday deals in the stores of Aldi Süd and Aldi Nord. These are the best deals in the Aldi Nord and Aldi Süd online shop : Medion Life Ultra HD Smart TV P16510 (4K Ultra HD, 65 inches) for 599 euros, on Amazon the television costs 699 euros LA Sports foosball table 5 'Liverpool for 179 euros instead of 349.99 euros (RRP), at Tchibo the product currently costs 199 euros Wellactive barbell bar, 10 kg, 180 cm for 39.99 euros instead of 59.90 euros (RRP) Source: aldi-onlineshop.de, idealo.de Black Friday offers in the stores of Aldi Süd and Aldi Nord: These are the best deals In the stores of Aldi Nord and Aldi Süd, there will be mainly kitchen appliances and other small electrical appliances on Black Friday, according to the discounters' brochures. The information in the brochures differ slightly. These deals are available on Black Friday at Aldi Süd and Aldi Nord: Tefal Raclette & Grill RE4588 for 49.99 euros instead of 129.99 euros (RRP), -61%, at Saturn the product costs 69.99 euros Tefal OptiGrill GC705D for 87.99 euros instead of 249.99 euros (RRP), -64%, at Lidl the product is currently available for 84.99 euros JBL Wave 100TWS in-ear headphones for 39.99 euros instead of 59.99 euros (RRP), -33% Blaupunkt Bluetooth speaker BT214 for 16.99 euros instead of 49.95 euros (RRP), -65% Source: prospekt.aldi-sued.de, idealo.de At Aldi Süd, other Black Friday offers are advertised that could be of interest to bargain hunters: Tefal ActiFry hot air fryer for 89.99 euros instead of 259.99 euros (RRP), -65%, at Amazon the model FZ7100 costs 199 euros AEG kettle, toaster or smoothie maker for 24.99 euros instead of prices from 54.95 euros (RRP), from -54% Source: prospekt.aldi-sued.de Aldi Süd also has a cordless hammer drill HP488DWE from Mikita for 119 euros. This is advertised without specifying the discount. According to Idealo, the cheapest comparable price on Thursday is 137.99 euros, at Amazon it costs 145.89 euros. Before customers strike on Black Friday, they should check the supposed offers more and more closely and compare the prices. Because on Black Friday there are some fake deals and discount traps that consumers can avoid. See here for more: https://www-hna-de.cdn.ampproject.org/c/s/www.hna.de/verbraucher/black-friday-2021-aldi-angebote-deals-schnaeppchen-heute-91140247.amp.html

Discount Retail Chain Lidl GB (owned by the Schwarz Group) has unveiled plans for 58 new store sites in Scotland as part of a push to create 4,000 jobs across the UK including hundreds north of the Border over the next three years. Executives said they expect to reach the target of having 1,000 stores by 2023 and set a new ambition for 1,100 sites by 2025. The move comes as the grocer published its accounts for the year to end of February at Companies House, showing how it benefitted during the pandemic from its position as an “essential” retailer. Sales jumped 12 per cent to £7.7 billion (US$10.2Bn) and pre-tax profits hit £9.8 million (US$13m) after a £25.2m loss a year earlier, according to the accounts. Despite the strong sales during the financial year, it also revealed Brexit has had a detrimental impact on the business. The accounts state since the end of the transition period at the end of 2020 there has been an increase in administration for importing and exporting and warned customs agents are being stretched, which is limiting their ability to process goods more efficiently. Lidl added it had suffered from delays at the UK border due to missing Government guidelines for some shipping lines, and seen costs rise on an item-by-item and shipment-by-shipment basis due to customs duties and import costs. Executives also said they opened 55 stores and during the first year of the pandemic and spent £17.5m (US23.4m) on boosting staff pay, including £8m on hourly wage hikes and £9.5m (US12.7m) on bonuses during the Covid-19 crisis. It will reduce plastic in its own-brand packaging by 40% by 2025 and cut the total amount of own-label packaging by 25% in the same year. Christian Hartnagel, Lidl GB chief executive, said: “We delivered an impressive trading performance in the period which was supported by our continued investment in new and existing stores, product innovation and our people.” See here for more: https://www.heraldscotland.com/business_hq/19739521.lidl-scotland-potential-new-sites-full-list/

Discount Retail Chain ALDI USA (German family owned) is preparing with the arrival of new celebratory items. The low-cost chain releases new own private label branded items each week, and this week's "ALDI Finds" includes all kinds of traditional holiday favorites. 1. Beaumont Cocoa Hot Cocoa Cup Sampler Pack Entertaining a crowd can be hard sometimes when everyone has different tastes—but ALDI's upcoming hot cocoa selection was made with variety in mind. This box of 24 Kcups features six mocha, six Irish creme, six salted caramel, and six peppermint options for $7.99. That's only about $0.33 a cup. 2 Chobani Holiday Inspired Oat Creamer Gone are the days of having half and half as the only coffee creamer option—seasonal flavors are officially on grocery store shelves. This one will be at ALDI on Nov. 24 and allows you to turn your daily morning cup of joe into a peppermint mocha without needing to dust any snow off the car. In true ALDI fashion, it's also cheap. One jug is $3.49. 3 ChocoSecco Sparkling Chocolate Wine This wine is making its way from Germany to an ALDI store near you soon, and it was too unique not to include it on this list. "Enjoy the unique and sensational flavors of ChocoSecco," ALDI describes this wine as on its website. "The taste of tenderly melting chocolate and a touch of delicious cocoa for the sparkling moments in your life!" The low-cost chain does note that this wine is not available in every location, and you'll have to check yours to see the exact price. 4 Park Street Deli Cranberry Jalapeno Dip ALDI isn't just putting traditional holiday favorites on sale soon, it's also adding unique takes on flavors we know and love. The Park Street Deli Cranberry Jalapeno dip is $3.99 and gives cranberry sauce a new competitor. 5 Benton's Pre-Built Gingerbread House Kit Between decorating, cooking, baking, and gift buying, it may be difficult to have enough time to properly construct a gingerbread house this holiday season. ALDI's Pre-Built Gingerbread House will be on sale soon for $9.99 and will save you some time to fill the stockings with cheer and to go dashing through the snow. 6 Buddy The Elf Cereal This cereal is definitely part of the elves' four main food groups—candy, candy canes, candy corns, and syrup—since the corn puffs inside are flavored with maple syrup. Included are also little red and green Christmas tree marshmallows, which can be considered part of the candy group. Get this Buddy-approved holiday breakfast treat for $2.49 at ALDI soon. See here for more: https://www.eatthis.com/news-aldi-holiday-items-on-sale/

Discount Retail Chain Penny (owned by the REWE Group) is celebrating 25 years in Hungary. How has the business changed in that time? Florian Naegele, CEO of Penny Hungary: The first Penny Market opened its doors 25 years ago in Szentes, 156 km southeast of Budapest by road. The chain has grown into one of Hungary’s leading retail companies in that quarter-century, with 226 stores nationwide and three logistics centers, employing nearly 4,700 people. Twenty-five years ago, the most important thing for our customers was price, not the assortment or ingredients. Today, consumers are more quality and health-conscious, besides expecting the best value for money. We have a great selection of high-quality products that can cater to those with food allergies or the health-conscious. How are you marking this silver jubilee? To mark the 25th anniversary, we asked our oldest members of the “Penny family” why they love working for the company. We received hundreds of very heart-warming comments. We produced posters with these and are placing them on our intranet and our Team Penny app. We are a committed partner to our employees, striving to know and understand their needs while offering them individual personal and professional development opportunities. It is no wonder that the company has many employees who have been with Penny for more than 20 years, and some since the beginning. Our “25 Years Together” birthday campaign ran through September for 25 days. Every day, 25 lucky winners per store received 25% of the value of their purchase back. On top of that, 25 Penny customers who presented their digital or plastic loyalty card when paying could win a gift card worth HUF 25,000 (US$77). The cherries on the cake were 25 Citroën C3 cars drawn from among all the customers who shopped during those 25 special birthday days at Penny. For our employees, we organized an online celebration, where we spoke about the past, about our commitment to the Hungarian team, our mutual achievements, and our future goals. We had some great hosts who made the program truly enjoyable, including a performance created especially for us by the dance group Urban Verbunk. We honored employees who have been with us for 25 years with a celebration on stage. After the show, all the teams could celebrate with a slice of cake and a glass of non-alcoholic champagne. Every employee received a special birthday present as well. We also had some games for our employees before and after the celebration. We will continue working in this festive atmosphere till Christmas. Last year’s retail figures were boosted by how shoppers responded to the pandemic. Has that been maintained this year, or are things reverting to “normal?” Last year, the shopping habits changed, and these changes are still more or less valid. The average basket value has significantly increased, and the frequency of purchasing has declined. People are more careful and buy only when they need something; price sensitivity has increased substantially. Customers prefer our own private label products, and we have noticed a shift towards packaged products that are considered safer. They buy more own-brands, bulk-packaged and thus more affordable goods than before the crisis. Shoppers buy products needed for home cooking and baking more than previously. The importance of some categories related to spending time at home became much more significant. Another change is the higher significance of the online stores. Many of those who were averse in the past tried it during the pandemic. We currently offer online shopping via Food Panda in selected locations. People are still hesitant to shop online in Hungary, especially the older generations; they prefer to come and shop in person. So, we need to make sure that we can offer them safe shopping and an enjoyable experience. Paying by bank card is favored over paying with cash. We suspect that Christmas shopping will be somewhat different this year again. Due to the significantly higher inflation, people will not have money for expensive gifts and huge food bills. We think that they will focus on the necessities and will be looking for good value deals. Thanks to our renewed assortment, we can cater to our customers in these new, challenging circumstances as well. BBJ: Are you using more local suppliers to shorten supply chains in the wake of the pandemic? What proportion of goods on the shelves are of Hungarian origin? FN: We have been advocating for Hungarian producers for many years. We have very strong cooperation with Magyar Termék Kft. (Hungarian Products Ltd.) and have applied their logo on our Hungarian products for a long time. Since the beginning of last year, we have increased the number of our Hungarian suppliers in every segment, not necessarily because of the pandemic. We are keen to offer Hungarian products due to the efficiency of the supply chain and the taste preference of our customers. In some segments, like meats or spring and summers fruits and vegetables, for example, the share of Hungarian products is more than 90%. In general, approximately two-thirds of our selection comes from Hungary. We introduced an advertising and PR campaign to inform shoppers about the direction of selection development and supply management: More local products and more efficient supply management. What are you doing to boost brand recognition in Hungary? We are renewing and refreshing our stores. Penny Market is becoming Penny. We have a fresher look with a new logo and color scheme. In our communications, we focus a lot on the local, high-quality products, wider assortment, and our offer for the health-conscious; a more extensive selection of products that are low in sugar and fat or that do not contain various allergens. We pay attention to the vegetarian shopper as well, offering some great non-meat options. What do you think will be the greatest challenge for the company in the near- to mid-term? A great challenge for all retailers, I think, will be to work based on a fluent supply chain. We can see what is happening worldwide with the supply chain slowing down and even broken at some phases. We trust we will be able to serve our customers so that they will not see too many of these issues. We are extending our logistics center in Karcag (172 km east of Budapest); it will be ready in March 2022. This development will increase the area by 30,000 sqm and employ 40 new staff. It will supply many more stores in its vicinity, shortening the transport time of our goods from warehouse to shop. We can react to any change in demand in a much shorter time. And what of the future? Important tasks for the coming years will include strengthening the brand image on the Hungarian market, building on the solid base that we have, making it more widely known and relevant, gaining new target groups to expand our customer base in an extended store network. And of course, we wish to improve our relationships with our suppliers and partners further. We put serious efforts into maintaining our status as a reliable employer. We plan to grow our team and improve their performance through developmental programs, team coaching, offering higher educational programs, and graduate internship programs. Regarding SCR, we will continue to support the Children with Cancer Foundation, the Hungarian Emergency Services Foundation OMSZA, and many local schools and nurseries. We also support the Hungarian Food Bank every month and its annual Food Convoy initiative, organized with the Food and Agriculture Organization of the United Nations. This marks World Food Day and was held for the 16th time this October. People and families in Hungary are more in need of financial or material support due to the social changes following the health crisis that is now becoming economically and socially challenging. We want to put a greater emphasis on sustainability too. We see this as an essential topic to which large corporations need to pay more attention. We will improve our material use and systems, saving money for us and beneficial to our local environment. See here for more: https://bbj.hu/business/people/interview/25-years-of-serving-the-market-and-building-trust?fbclid=IwAR0eIxisMw8awQhAz3ZO7ZAznWY1BNNVA-0cs1AzL-FfHUq4Vg8kIq2_iu4

Discount Retail Chain ALDI France (German family owned) draws a positive balance: since the beginning of this year, the discount retailer in France has integrated around 500 stores and three central warehouses of the Casino Group into its sales network. More than 5,000 employees were integrated into the teams. With this, ALDI France is significantly expanding its market position and is continuing its dynamic growth path. In a remarkably short time since the project started in January, ALDI France has implemented the most comprehensive integration process in the company's history to date. The teams needed around four weeks for the complete renovation of each branch; The central warehouse was reopened within just four months. The integration was accompanied by a training program lasting several weeks for the new employees. With them, the total workforce of the discount retailer in France has grown to more than 15,000 employees. The fact that this integration process, as well as the conversion of stores and central warehouses, could be carried out smoothly in just a few months is evidence of ALDI France's strength in implementation. The integration of the stores and central warehouses, which were previously managed under the Leader Price brand, marks an important step in ALDI France's expansion strategy. "Our aim is that all customers can reach an ALDI store anywhere in the country within fifteen minutes. By merging the employees and markets of Leader Price and ALDI, we have reached an important milestone on the way to this goal," says Philip Demeulemeester, who is responsible for the discounter's business in France. The company continues to expand with the aim of becoming the market leader in the French discount market. "In the coming year we are planning to open more than 100 new sales outlets in order to strengthen our presence as a basic supplier and thus further improve accessibility for customers throughout France," said Philip Demeulemeester. ALDI France is thus sending a positive signal in terms of the long-term growth strategy of the ALDI North Group. See here for more: https://www.fruchtportal.de/artikel/meilenstein-fr-aldi-frankreich-erfolgreiche-integration-von-rund-500-filialen-und-drei-zentrallagern/052326?i=a9f8dfdc

Discount Retail Chain Lidl Spain (owned by the German Schwarz Group)l has presented its assortment of the "Deluxe" range for Christmas. In it, it is possible to find up to 180 product novelties compared to 2020 with the addition that 75% of the references are of Spanish origin. In this way, Lidl already has more than 600 seasonal and in&out products available for this Christmas. Of these, three out of four have been produced by small and medium national suppliers. Among them are internationally awarded products for their high quality such as cheeses: goat roll with chocolate and nougat; Sheep cheese cured with jalapeños; and Sheep cheese cured with mojo picón. An assortment that seeks to merge tradition and innovation. Other novel products that stand out in this year's offer are clam caprices with wine at 1.99 euros (US$2.25), honeyed veal and foie croquettes at 3.99 euros (US$4.50), scallop au gratin with clams or crab at 2.19 euros (US$2.50), Premium gyozas at 2.99 euros (US$3.40) and fresh Christmas stock at 1.99 (US$2.25), among others. Exports In addition to betting on Spanish producers and suppliers, Lidl also exports Christmas gastronomy to Spain every year. Thus, in the last ten years, the chain has exported Christmas products made in Spain for its brands worth more than 50 million euros to 30 countries and more than 10,000 stores in which it is present. Only in nougat, Lidl has exported more than 25 million tablets to the rest of the countries in which it operates in the last ten years, bringing the products with the best quality-price Made in Spain to the rest of Europe. According to the Director of Public Relations of Lidl Spain, Arantxa Conde, "Christmas is the time of year when the population most wants high quality products, in addition to traditional flavors. To be able to make a selection of products available to our customers selected of such a high level at the best possible price, it is not only the result of the brand's commitment to small and medium-sized national suppliers, but also does not make us feel particularly proud that our collaborators can take their proposals with a Spanish seal to customers from Lidl in many European countries ". Support for the national economy Lidl is a firm defender of Spanish products, as evidenced by the fact that it is the supermarket chain with the highest volume of purchases from small suppliers and that it has a large number of regional references. Currently, the company works with more than 750 Spanish suppliers that Lidl supports by acting as an international platform: 55% of the volume of purchases from national suppliers is exported to other European markets in which the company operates. See here for more: https://www-eleconomista-es.cdn.ampproject.org/c/s/www.eleconomista.es/retail/amp/11492421/El-surtido-de-Lidl-para-Navidad-180-novedades-y-un-75-de-productos-espanoles

The Schwarz Group (owner of discount retail chain Lidl and supermarket chain Kaufland) and the Israeli IT security company XM Cyber ​​have today agreed on a framework for a close partnership. This goes hand in hand with the acquisition of a majority stake by the Schwarz Group in the cyber security specialist. With the partnership, the Schwarz Group is preparing itself for future challenges in IT security. New growth opportunities are opening up for XM Cyber. Security plays an important role in the advancement of digitization. Cyber ​​attacks such as the smuggling of ransomware into a company's IT infrastructure can cause major damage. XM Cyber ​​supports you with innovative approaches to protection against cyber attacks. The company simulates attack paths in vulnerable parts of the IT system in order to close them. For the Schwarz Group, the extensive know-how in relation to securing complex hybrid cloud systems is an important aspect of the partnership. "The XM Cyber ​​team with a deep technical understanding and innovative strength optimally complements our portfolio for IT security", says Christian Müller, CEO of Schwarz IT. "The approach of finding ways into the company and closing them from the attacker's point of view is a future-oriented, additional component with which we protect our customers, partners and ourselves as a company." See here for more: https://www.fruchtportal.de/artikel/schwarz-gruppe-bernimmt-cyber-security-spezialisten/052251?i=224f9a6e

Discount Retail Chain Pepkor (owned by Steinhoff International) has begun working on sourcing its products locally following supply chain issues that are set to hurt consumers’ pockets in 2022. The company, which owns brands like Pep, Ackermans, Russells and Incredible Connection, has been impacted by global supply chain challenges that have resulted in higher shipping and freight costs, port congestion and some product shortages. Although Pepkor’s customers have not yet seen the impact of the supply chain issues on their wallets, Pepkor’s CEO Leon Lourens warned that they can expect price hikes from winter next year - if the problem persists. Lourens explained that in the past year, customers had been cushioned by the strong rand, which meant that the company was able to buy products overseas at a lower price and invest what it saved in the supply chain. But the rand has since strengthened against the dollar. "It looks like going forward … winter next year and beyond … the additional shipping cost will obviously be carried by us, we will put that into the cost price of our product and unfortunately there will be inflation then," Lourens said. This means that the cost will, unfortunately, have to be carried by consumers. However, Pepkor is joining a growing list of retailers who are now turning to local manufacturing, not just as a solution to the current problem, but as a long-term plan - which bodes well for South Africa’s manufacturing industry. Lourens said the company imports between 65% and 75% of the clothing it sells and the balance is produced locally. But the company has begun working with local manufacturers to develop more local products. "Because we believe in the longer term, that will be to the benefit of not only our business, but also, to the country as a whole. Our objective is to work with local manufacturers locally that will make them competitive, that’s the secret," he said. With regards to whether he anticipates shortages over the festive season, the CEO said consumers have nothing to worry about. "There has been supply chain impact on stock supply, it goes up and down and we’ve had some delays, but I can assure you, we have more than enough stock for the festive season," he said. On Friday, Lourens presented the group’s results for the year ended 30 September 2021. In that period, Pepkor’s earnings grew by 115% to R5 billion (US$0.3Bn), its revenue increased by 9.2% to R77 billion (US$4.9Bn) and its operation profit rose by 40% to R9 billion (US$0.6Bn). The group managed to open 247 stores during the year, bringing its total stores across 10 countries to 5,470. And its goal is open 300 stores per year for the next five years. See here for more: https://www.news24.com/fin24/companies/retail/pep-owner-sets-its-sights-on-local-manufacturing-as-supply-chain-woes-continue-20211119

Food and consumables accounted for 77% of Discount Variety Retail Chain Dollar General’s annual sales last year of US$33.7 billion. The expansion of cooler and freezer capacity at new and remodeled stores has for several years been described as the Goodlettsville, Tenn.-based company’s most impactful merchandising initiative. Dollar General began selling fresh produce at select stores last year, expanded the program to 2,000 locations this year, and its current plan is to add produce in up to 10,000 stores. Dollar General now self-distributes frozen and refrigerated products from a network of 12 facilities after completing a multiyear rollout of its DG Fresh supply chain initiative ahead of schedule during a pandemic. Dollar General now sells more food in more places than ever before, thanks to its massive base of 18,000 stores, and will increasingly do so in the future as the company projects that opportunities exist for thousands of more stores. Dollar General’s sales mix and strategic actions are the hallmarks of a grocer, and a successful one at that, but “grocer” isn’t a term that CEO Todd Vasos uses to describe the business. “We don’t consider ourselves a grocer. We have for many years considered ourselves to be more of a general store,” Vasos tells Progressive Grocer in an exclusive interview. “If you think about our stores and where they’re located, about 75% are in rural or small-town America. From that standpoint, we’re much more than just a grocer by a long shot, because we carry a full array of consumables and nonconsumable-type items.” The distinction between a grocer and a general store can be subtle, but it’s a view also held by Emily Taylor, Dollar General’s EVP and chief merchandising officer. She views the general store moniker as a way to describe “the magic of the box,” where customers are able to meet a broad range of needs: “Everything from everyday basics, whether it be in household, family needs, all the way over to more discretionary-type purchases, including all health and beauty care. “But at the same time, we also meet [the shopper’s] needs when it comes to food and feeding her family,” Taylor continues. “That really is the magic of the box, and to do that in such a small footprint, so that it’s convenient for the customer, is really what we work to be.” Fresh produce will roll out to 10,000 Dollar General stores in coming years. Charting the Course When Vasos arrived at the company in 2008, a decade after Taylor joined in an investor relations role, he brought a background from Longs Drugs, Phar-Mor and Eckerd. He initially served a head merchant and brought the perspective of what was possible with food and consumables, because Long’s and Phar-Mor were nontraditional chain drug operators with expanded food and consumable sets that would later become the norm in the channel. “What we set our sights on in 2008, as we went through and transformed the company to what you see today, we wanted to make sure that we didn’t turn Dollar General into a 7,500-square-foot grocery store,” Vasos says. However, retail is about listening to customers, and over the years, Dollar General’s customers wanted more perishable products. “One of our biggest initiatives, and it has been for many years, has been the cooler initiative, both on the frozen as well as the deli and dairy side of the business, because the consumer is looking for more and more of those type of goods from Dollar General,” he notes. The same is true of fresh products. Just a few years ago, the notion of Dollar General selling produce seemed a stretch, given the operational complexities of the category and Dollar General’s lean operating model. However, the company decided to leverage its experience with its roughly 120 larger-format Dollar General Market stores and add a limited assortment of produce to select stores. The focus is on the 20% of the produce SKUs that generate 80% of the volume, while steering clear of items prone to rapid spoilage. “Over the next few years, we’ll have probably upwards of 10,000 or more stores with produce,” Vasos says. “It will be a combination of ambient as well as refrigerated produce, and depending on the size of the store and the competitive set around it, it could be anywhere from 12 feet up to 28 feet.” The expansion focus early on is on food desert-type locations in smaller towns or rural areas, where the closest conventional grocers may be 20 miles away, he explains. “It is not our intent right away to go into all of our stores, but I would tell you that if the consumer continues to ask us for fresh produce, even in our more metro-type settings, we'll take a look at it obviously,” Vasos says. Dollar General's major expansion of freezer/ cooler doors proved to be the company's most impactful merchandising initiative for several years. Getting to 35,000 Stores? Think a company with more than 18,000 stores must be close to exhausting its expansion opportunities? Guess again. Dollar General has been defying skeptics for a long time, whether the milestone was the opening of its 5,000th store in 2001, the 10,000th store in 2010 or the 15,000th store in 2018. The company recently crossed the threshold of 18,000 locations, but it keeps finding new expansion opportunities, thanks to a flexible format strategy and a willingness to introduce new concepts. “Within the last year, we updated what we believe our total number of opportunities to be, and it’s another 17,000 locations,” Vasos notes. Embedded in that figure are 3,000 locations of pOpShelf, a new concept focused on nonconsumable products. The first locations opened last fall, and by the end of this year, there could be as many as 50 pOpShelf stores selling a variety of attractively priced beauty, seasonal, home décor, and arts and crafts products. The pOpShelf concept, along with format experimentation of the flagship Dollar General banner, is why the company continues to defy gravity when it comes to store count. The retailer has DGX stores as small as 6,000 square feet that are designed for urban areas, and its conventional Dollar General stores range in size from the classic 7,300-square-foot units, to the newer 8,500- and 9,500-square-foot locations. Dollar General Market locations can range from 15,000 to 18,000 square feet, with that space allowing for the creation of a combination format featuring pOpShelf departments, which were recently added at two locations. The company doesn’t have a one-size-fits-all approach. “It opened a tremendous amount of white space for us across America to be able to put a different size box in, depending on the location and demographics of the areas, and what the consumer needs,” Vasos says. “We will continue to innovate, and that 17,000 square feet will continue to morph. I think it could get even bigger than that, but we’re not prepared yet to put the stake in the ground.” A focus on nonconsumables led Dollar General to develop its new pOpshelf concept with the potential for 3,000 locations. Putting the ‘General’ in Dollar General Dollar General has been crushing it with food and consumables for several years, and recent initiatives regarding the supply chain, increased capacity in stores and growing fresh assortments indicate that will continue to be the case. But general merchandise is a key aspect of the overall appeal of the Dollar General experience, which is why Taylor and her merchant team have for several years been focused on the uniquely Dollar General acronym of NCI. “We were very proud of the growth rate that we had achieved in the consumable categories over years, but had not attacked the nonconsumable area and tried to grow that in the same way,” Taylor notes. “We had an opportunity to launch our nonconsumable initiative (NCI) and really, for the first time, reconsider the space in our store dedicated to nonconsumable product and reposition it in the mind of the customer.” The changes involved basic retail techniques like adjusting assortments, fixturing, adjacencies and signing, and the changes worked in ways that also benefited food and consumables. “We were able to reverse the trend of the negative mix shift that we had been seeing, and are pleased with the growth of nonconsumable categories,” Taylor says. “When we put the NCI initiative in stores, we grow the whole store, and that reiterates the fact that this broader shopping experience is what customers are looking for out of our stores. The entire box becomes more appealing.” Expanded assortments of health and beauty products fit with Dollar General's long-term vision of playing a greater role in health care. Reimagining the Box and Beyond Serving others is a phrase used often at Dollar General. It guides the company’s philosophy of delivering convenience and value to lower-income shoppers. It’s also a mindset that causes Vasos and other leaders to look around and question where else the “serving others” philosophy can be put into action. That led Dollar General to the world of health care, and the intriguing possibilities of how the company can leverage its footprint and technology to help customers live healthier and gain easier access to such services when needed. "More and more, our consumer is telling us they want some basic health care opportunities in rural America especially, and small-town America, where, again, I use the word ‘desert’ a lot, but there’s a lot of health care deserts out there,” Vasos observes. He points to new technologies that could make vision checkups and other optometry services possible in a small footprint inside Dollar General’s larger prototype. The same could be possible with basic doctor visits conducted over the internet. “Telehealth is here to stay, but in rural America, having a wifi connection can be as hard as finding a grocery store,” Vasos says. “We have that ability in our stores so we can deliver that to the consumer where they can feel comfortable to come to us. Think of prescription drugs. Not that we’re going to have a pharmacist on staff, but what if in certain states, we’re able to have a central fill delivered into our stores once a day for the consumer to pick up? In rural America, I think it will be a big advantage and could cut off as much as two to three days on a prescription.” Dollar General plans to move fast with health care, which is a core component of many grocers’ value proposition, but Vasos cautions that it will take time to find the right approach. “This is a real long-term initiative, but one I believe will benefit not only our core consumer, but also the shareholders and our employees,” he asserts. The company has already taken steps from a product standpoint, bolstering assortments of health and beauty care items in advance of introducing more service-oriented offerings. “We know health care is an opportunity for our customer to be better served, with better access and more affordable solutions,” explained Taylor, “and because of our extensive footprint in a lot of areas that are underserved today, it puts us in a great position to help our customers. That's very exciting as it relates to merchandising within the store.” The major DG Fresh supply chain initiative, completed ahead of schedule this year, gave the company self-distribution capabilities from 12 facilities. Don’t Doubt Dollar General For much of its history, at every turn, Dollar General has proved skeptics wrong and delivered results. Last year was the company’s 31st consecutive year of same-store sales growth as it reported a pandemic-fueled comp increase of 16.3%. The company’s record of consistency is in jeopardy this year as it laps record gains, but that doesn’t change Dollar General’s long-term trajectory, which is poised to benefit from multiple drivers such as the growing relevance of its stores due to food and consumables and nonconsumables, forays into health care, supply chain efficiencies, and digital capabilities, which are surprisingly sophisticated but often overlooked. “We’re a company that’s going to deliver on the promise of serving others every day, and across our core consumer, as well as the consumer base in general,” Vasos says. “We get told all the time from not only our core consumer who makes less than $40,000 annually, but consumers who make $50,000 to $75,000 and are adjacent to our core consumers, that our box is becoming more and more relevant to them. We are becoming more and more relevant to a larger subset of Americans than ever before.” That is especially true as inflation eats into the purchasing power of Americans, and rising fuel costs erode discretionary spending for lower-income consumers. That combination of economic forces has proved beneficial to Dollar General in the past, enabling the company to grow during good times and bad, and overcome doubters along the way who would question the company’s growth prospects. Taylor recalls having many of those conversations back in 1998, when she joined the company’s investors relations department and there were 3,169 stores. “We spent a lot of time explaining why people needed a store like Dollar General, because it wasn’t well understood by those who might not live in some of the communities we traditionally serve,” Taylor recounts. “We also answered questions about ‘Have you reached the point of saturation?’ We absolutely didn’t believe that at the time, and it turns out we were right.”

Twenty years ago, on January 25 2001, a virtually unknown German supermarket chain quietly opened its first stores in Australia. The two stores, one in Sydney’s inner-west suburb of Marrickville, the other in the outer south-west, near Bankstown Airport, were small, about a quarter the size of a mainstream supermarket. Each stocked just 900 products, 90% of which were unknown brands. Shoppers had to bring and pack their own bags themselves. To use a trolley required a “gold coin”. They didn’t seek to entice customers with “loyalty” rewards or other gimmicks. Few Australian supermarket executives at the time would have considered them models for success. They couldn’t imagine the impact Aldi would have on Australia’s retail sector and shopping habits. Aldi’s history Aldi’s story began in 1913, when Anna Albrecht opened a small grocery store in 1913 in the city of Essen, western Germany. Her two sons, Karl and Theo, took over the business after World War II. In the impoverished conditions that followed Germany’s defeat, they focused on keeping costs, and prices, low. Among their strategies were to stock only the most popular items and avoid perishable items. By the end of the decade they had more than a dozen stores, and by the end of the 1950s more than 300. One of Karl Albrecht’s stores in Essen, 1958. The brothers adopted the the name Aldi, combining the first two syllables of Albrecht Diskont (“discount” in German) in 1961 (though accounts differ on the year). At about the same time (again, accounts differ on the year) they had a major disagreement over whether to sell cigarettes. They resolved the dispute by splitting the business into two geographic entities: Aldi Nord (“North”), run by Theo (and selling cigarettes), and Aldi Süd (“South”), run by Karl. The split was amicable, and they managed the two divisions collaboratively. From the late 1960s Aldi began to expand across Europe, beginning with the acquisition of Austrian grocery chain Hofer. It opened its its first US store, in Iowa City, in 1976, and its first British store, in Birmingham), in 1990. So by the time Aldi opened its first stores in Australia, it was a booming multinational. It now has more than 10,000 stores in 20 countries, including China. Aldi stores worldwide. Aldi Nord territory is in blue, Aldi Süd in orange. Growth in Australia In coming to Australia, Aldi pounced on a gap in the grocery retail market. The “food discounter” model had been dominated by now defunct Franklins and Bi-Lo (owned by Coles). By the late 1990s, however, these chains had messed with their “no-frills” model through attempts to go upmarket. It proved disastrous. Franklins went into terminal decline. Coles abandoned the Bi-Lo brand in 2006. Aldi expanded quickly. By mid-2003 it had 38 stores in New South Wales and six in Victoria. By 2011, it had 251 stores. By early 2013, more than 280, and had expanded to Canberra. It overtook the IGA group to become the third-biggest player in Australia’s supermarket sector by the end of 2013 – taking 10.3% of all grocery dollars (with Coles having 33.5% and Woolworths 39%). Its first stores in South Australia and Western Australia came in 2016. It now has more than 500 stores and a 12.4% share of Australia’s A$110 billion food and grocery sector (according to the most recent data from Roy Morgan). In 2020 Aldi was named Australia’s best supermarket by consumer review website Canstar Blue (the seventh time in a decade), and second-most trusted brand (after Bunnings) by Roy Morgan. Its practices have influenced how the other supermarkets do business. In particular it has forced competitors to increase their own “private label” (or home-brand) products, introduce “phantom brands”, and promote ever-changing “special buy” general merchandise ranges. Private and phantom labels In 2004 private labels comprised an estimated 9% of the products Coles and Woolworths stocked. By 2019 they made up 30% of Coles’ sales. Woolworths has similarly increased its private-label range, due explicitly to pressure from Aldi’s arrival and expansion. Notably, Aldi sells no “ALDI” branded products. Instead it trades in phantom brands, such as “Belmont” ice cream, “Radiance” cleaning product and “Lacura” skin care. These brands are intended overcome perceptions of private label items being lower quality. In 2016, Woolworths launched its own range of phantom brands. Coles followed suit in 2020 with brands including “Wild Tides” tuna and “KOI” toiletries. Cheap over choice is key to the Aldi business model. Special buys The bigger supermarkets have also been forced to emulate Aldi’s drawcard of bi-weekly “special buys” – heavily discounted items not normally sold in supermarkets. These have included televisions, lawn mowers, vacuum cleaners, motorcycle jackets, luggage and (curiously for a country like Australia) ski gear. There are always limited quantities and shoppers regularly experience disappointment. Despite this, indeed because of this shoppers will queue and keep coming back. These quirky, seasonal, limited-stock items create excitement and FOMO fear of missing out. Shoppers queue for bargains at Aldi’s store in Heidleberg West, Melbourne. Unapologetically Aldi While its competitors have emulated Aldi in several ways, the German chain remains a very different no-frills operation. It hasn’t bothered with investing in the self-service checkouts that are now ubiquitous in other stores. It continues to offer only long conveyer belts and seated register operators. Nor does Aldi have plans to facilitate online deliveries, in which the two supermarket giants have invested heavily. It never had to cope with customer backlash over phasing out free single-use plastic bags either. Because it never offered free shopping bags, always charging 15 cents for them. So Aldi continues to be an exception to the rule in Australian supermarket retailing. It history suggests that’s a recipe for continued success. See here for more: https://insidefmcg.com.au/2021/01/25/how-aldi-has-changed-the-face-of-grocery-retailing-and-the-way-we-shop/

Discount Variety Retail Chain Action Poland (owned by 3iGroup) sees Poland as an important market, we see a great potential for further development of Action. As you can see from our weekly openings of new outlets, we do not assume "either or or". We are developing both in smaller towns and larger cities, declares Sławomir Nitek, CEO of Action Polska, in an interview with the portal Wiadomościhandlowe.pl. Action launched an advertising and promotional campaign some time ago, it seems that it was the first such large action on the Polish market? Does this mean that the scale and coverage of the network are so large that such investments are beginning to pay off? Action has already run advertising and promotional campaigns in Poland, for example last year before Christmas. Each time we carefully examine the effectiveness of such activities and draw conclusions for the future. As our network is constantly expanding, and we should be present in all provinces by the end of October, we do not rule out further advertising activities in the future. What is the network's marketing and promotional strategy for the coming months? Will Action be more active in this area? What kind of communication will the company focus on? What differentiators will it emphasize? We are constantly focusing on our distinguishing features, i.e. good quality products at the lowest possible price. These are well-known own brands or recognized suppliers, we have the ambition to offer them at a lower price than the competition. In addition, there is the aspect of an increasing number of stores, and therefore the availability of our offer to Polish residents. As for future actions, we do not want to reveal any further plans. Our focus is on the present - Every week, Action offers selected products as part of the "Weekly Promotion". This means that some of the products in our offer are in the spotlight, on the first shelves just behind the entrance to the stores. These articles are also promoted in flyers, on the website, on our social media and in the newsletter. The decision to invest in marketing is the result of the dynamic development of the network on the Polish market. What are the territorial expansion plans for this and next year? Which local markets will be in Action's focus now? Poland is an important market for us, we see a great potential for further development of Action here. As you can see from our weekly openings of new outlets, we do not assume "either or or". We are developing both in smaller towns and larger cities. Soon we will open the sixth store in Warsaw and more in Wrocław and Kraków. We want our stores to be close to customers, regardless of their place of residence. I am very happy that we are entering the Lubelskie Province, the last one where our facilities have not yet been located. This development will be helped by the opening of another distribution center, and in the future possibly more. Where does Action want to be in Poland in the next 5 years? Which agglomerations will be Action's targets for the next 2-3 years? All of them, because we want as many Polish citizens as possible to have access to our offer. What are the development plans for Warsaw? How capacious is the market for a concept like Action? Warsaw is a large agglomeration, but also individual districts and housing estates. We treat our stores as local establishments, which you visit at the same time as at the bazaar or at the grocery store. In this respect, we see great potential for Warsaw, where we already have five stores, but also for other agglomerations. However, I would like to emphasize that we are equally enthusiastic about opening our stores in smaller towns. What does the average shopping cart look like in Action stores today? Is its value growing? How do you want to work on increasing not only the value but also the sales volume? Our clients like a wide selection of products from as many as 14 categories, promotions and a constantly changing assortment. This interest is reflected in their shopping cart and we can see that its value is increasing compared to when our first stores opened. It is also due to the increasing awareness of our offer among Poles. I would like to ask you to summarize the development of the Action network during the 9 months of this year. and a few words about the plans for the last three months of this year? How many stores does the company want to end this year? According to Action's report (based on the National Court Register), in 2021 the company planned to open 70 stores in new locations, will the plan be implemented? This year, we have already opened 40 stores, and we are planning more. Every week, there are from 1 to 4 Action outlets all over Poland. We have exceeded 2,000 employees, which is growing with every store we open. In the middle of the year, we presented our development plans and we will consistently strive to implement them. Unfortunately, we have no influence on the epidemiological situation and possible restrictions introduced for common security that may affect our future actions. See here for more: https://www.wiadomoscihandlowe.pl/artykul/slawomir-nitek-dyrektor-generalny-action-polska-ciagle-jeszcze-jestesmy-na-poczatku-naszej-ekspansji-wywiad