Discount Retail Chains in Italy: 50 YEARS OF ASCENT What was the first discount store to open in Italy? What are the marketing strategies that discounters have adopted to make their customers feel less? Why have LIDL shoes been so successful? HOW DISCOUNTS ARE BORN The history of discount stores begins in Germany , after World War II , when the brothers Karl and Theo Albrecht seized the main need of German consumers at a time of great economic difficulty : low-cost products . Thus, starting from their father's small grocery store, the brothers founded ALDI (Albrecht-Discount). ALDI quickly became a supermarket chain known for its spartan atmosphere and affordable prices, mainly due to the brothers' negotiating skills. In the 1970s, following the example of ALDI, LIDL was born in Germany. The concept is the same: confined spaces in the stores, little choice of products, no mood music. In short, zero frills and reduced costs to the bone. One of the first Aldi stores in Germany. LIDL is the first discount to arrive in Italy in 1992. Its success, however, at least at the beginning, is not comparable to that achieved in Germany. This LIDL had all the characteristics of the first German discount stores: narrow aisles made of pallets one on top of the other, neon lights, goods of unknown brands with minimal and unattractive packaging inside the boxes. It was, in short, sad and ugly. Historical collage of vintage photos depicting the first Lidl stores in Italy. Image credits: Lidl Italy Shopping in such a place was mortifying for the Italian consumer. For Italians, in fact, going to the supermarket is not just a necessity: shopping is a beautiful moment, a prelude to the convivial ritual of the table , of tradition and of all those beautiful things that certainly cannot be born between the depressing aisles, the poor lights, and the atmosphere of misery, then typical of the Teutonic discount stores. Understanding this limit is the key to the success of another discount store, all Italian, which was born in response to LIDL only one year after its arrival in Italy: Eurospin. Eurospin copies the model of the German discount, as regards the convenience of prices , but adapts it to the needs and gastronomic habits of the Italian consumer. In particular, Eurospin focuses on the higher purchase frequency of the Italian consumer compared to the German one, including in its assortment fresh and very fresh products , lacking in the first discount stores, such as fresh bread, quality fruit and vegetables. Furthermore, Eurospin is characterized by a cleaner and more elegant environment, in which the Italian consumer can feel a little more at ease, and includes products with a more attractive packaging , which conveys an idea of ​​quality. One year after Eurospin, MD, another 100% Italian discount store opens . Other brands followed in the following years, and ALDI, the first in the history of discount stores, also arrived in Italy in 2018. HOW DISCOUNTS WORK What unites all discounters is their business model, based on two fundamental distinctive features. First of these is the reduced assortment of products: we are around 2,000 references against those of traditional supermarkets, which reach 40,000. The advantage of this strategy, in addition to avoiding the paralysis of the consumer during the purchase in the face of an excess of supply, is above all the savings on management costs, due to the presence of few products in stock. Another feature of discounters is that the vast majority of their products are not from well-known brands, but from the discounter's own brands, the so-called “private labels”. Although they have different invented names depending on the product sector, the private labels all belong to the discount store and therefore involve considerably lower marketing and distribution costs than those of traditional supermarkets. While maintaining these cornerstones, over the years the discounters have transformed to intercept a wider range of consumers. To do this, they tried to raise their positioning, to the sound of marketing and advertising, by adopting some precise communication strategies. DISCOUNT MARKETING The discounter in its beginnings, in the collective imagination, was associated, especially in Italy, with a category of low-income consumers , who are satisfied with lower quality products in the name of saving . Given this perception, the social stigma of those who cannot afford decent spending weighed on discount shoppers. Therefore, those who feared feeling judged in these terms avoided discount stores or went there reluctantly. To attract this clientele, discounters had to implement a real repositioning , in terms of stores and products, and psychological , in the minds of consumers. In terms of layout, discounters have become more similar to supermarkets: larger, more beautiful, they have begun to locate themselves even within urban centers, to arrange the goods in a more orderly way, and to take care of the lights more, thus making the consumer shopping experience is more enjoyable. Products from the ITALIAMO line by LIDL At the product level, the fresh departments have increased and some branded products have appeared . Have been inserted, in addition, private label of high-end (such as the Deluxe line LIDL or Premium MD), as well as organic products , vegans, but also products for intolerant to gluten and lactose. In addition to the interventions at the store and product level, among the marketing strategies adopted by the discounters to reposition themselves, those of Eurospin, LIDL and MD represent winning examples. EUROSPIN: YOU ARE NOT POOR, YOU ARE INTELLIGENT Since its inception, Eurospin has embraced the claim: “ Smart shopping ”, adopting a repositioning strategy based on the perception of the consumer who goes to the discount store. What we intend to communicate is that the discount customer is not less wealthy , but intelligent because he knows how to choose the right relationship between quality and price. In 2020, Eurospin emphasizes this claim through a TV commercial, which takes up an advertising trend that began a few months earlier, in which Eurospin customers are so intelligent that they all turn into Einstein, a symbol of human genius, when they enter the store. In reality, in the commercial, the transformation of consumers, men, women and children, concerns hair and mustaches, which want to resemble the iconic ones of the German genius. The advertisement ends with a little girl who, after leaving the discount store, repeats the slogan: “Smart shopping” and sticks her tongue out, like Einstein in his famous photograph. LIDL: WE ARE VERY ITALIAN Unlike Eurospin, which relies above all on savings, LIDL's repositioning strategy focuses on the consumer's sense of belonging. The advent of the crisis in Italy had forced many middle-class families to review their consumption habits, often to the detriment of the quality of purchases. LIDL's "Italiamo" line was born in 2010 precisely to intercept this target: it is a private label that covers typical local products, such as DOP and IGP cured meats and cheeses, including products made in co-branding with Gambero Rosso, a guarantee of excellence and quality. Through its range of Italian regional products, LIDL reposition itself by solving the concrete problem of the consumers it was trying to intercept: by going to LIDL they can find a sense of belonging to the local tradition and, while saving money, they do not have the feeling of giving up quality. The presence of the Italian flag in the logo is certainly no coincidence. LIDL Italia logo LIDL's choice to partner with the men's national football team, the popular emblem of national unity, goes in the same direction. In the dedicated spot, the decision to rely on LIDL for the supply of fruit and vegetables is definitely approved even by Mancini. To seal its repositioning, in 2013 LIDL launched the advertising campaign "Anch'io", an eloquent name that suggests the idea of ​​a LIDL suitable for everyone's needs, because, as promised by the spot "LIDL is for you". The campaign appears in all the major media, focusing on the concepts of quality, freshness and Italian style, and ends with the payoff: “Don't change your lifestyle: change the supermarket”. The spot is directed by Luca Lucini, director of "Three meters above the sky" and the soundtrack is "Aria" by Gianna Nannini. Among the repositioning efforts by LIDL, attention to environmental sustainability emerges. In 2006, LIDL discount store is the first Italian to take the mark of the trade fair Fair Globe. His subsequent social responsibility initiatives are manifold: from the promotion of renewable energy sources to anti-waste campaigns. On the digital level, LIDL has recently activated a completely digital loyalty program , through the LIDL Plus app. Furthermore, among the social activities of Italian supermarkets, that of LIDL, entrusted to the Plan. Post from the FB page of LIDL Italia In 2020, in full pandemic, LIDL becomes the protagonist of a particularly resonant marketing initiative: it launches a line of clothing signed with its own brand and with the colors of its logo (blue, yellow and red). To advertise it, in Germany, LIDL implements an effective advertising campaign: for customers who go to a store, wearing sneakers from the LIDL line and share a selfie in which they wear them on social networks, there is a pair of limited edition footwear. Shoes are selling like hot cakes and the campaign is a success: almost at the price of production costs alone, LIDL manages to generate traffic in the points of sale, giving the consumer the role of influencer . Before the launch in Italy, a well-known influencer appears on IG wearing LIDL shoes: it is Federico Lucia, aka Fedez. The shoes, whose original price was 12.99 euros (US$15.6), are soon unavailable. LIDL sneakers Numerous analyzes have been carried out on the phenomenon of LIDL sneakers. An interesting reflection traces its success in their being a "statement piece", that is an object whose value is not found in quality or aesthetics, but in the provocation it offers: an economic product, of a discount, which becomes high fashion. LIDL has played precisely on this dichotomy through the collaboration with well-known influencers, such as Fedez, instilling in consumers the desire to have sneakers to appear on social media by wearing them: in this way a product accessible to all becomes a niche product, sold on ebay by the thousands of Euro. MD: HOUSEHOLD EXPENDITURE Unlike Eurospin and LIDL, MD's strategy has focused above all on the use of testimonials , faces known and loved by the Italian public, to give an idea of familiarity and trust, removing from MD the image of "discount with prices at good market ”to favor that of a“ reliable and convenient local supermarket”. One of the most successful collaborations was the one with Antonella Clerici , testimonial of MD since 2017. In 2019, to celebrate the 25th anniversary of the sign, MD launches a radio campaign in which Paolo Iannacci readjusts his father's famous song, “Vengo me too". In the commercial, the zoo becomes the discount store: the reasons why “you could go to MD to do the shopping” are listed, and the refrain becomes “I'm coming too! Yes you yes. But why? Because he is MD”, Antonella Clerici replies. This is precisely the soundtrack of the television commercial, signed by the Sunny Milano agency which sees the testimonial protagonist of a sort of musical inside an MD, in which customers and employees sing happily, showing how the discount is a pleasant place. open, well-kept and informal where you can shop with joy. The spot ends with the claim: "Good shopping, Italy!" In the following commercials, Antonella Clerici's familiar smile is flanked by patron Patrizio Podini, founder and president of MD. His presence, the "putting your face" is functional to underline the reliability of the discount store and the quality of its products. In 2020, MD also begins a new digital communication project, created by the Deltastudio agency called Casa MD: in twelve videos, Antonella Clerici appears together with one of the chefs of La prova del Cuoco in a home kitchen, welcoming and familiar, preparing recipes made with MD products. In addition to the blog, the video recipes can also be found on MD's YouTube channel. MD's communication on social media is noteworthy. On Facebook, MD actively engages its large community through nice polls, and posts with funny and ironic copy. Post from the MD FB page Among other social initiatives, MD promotes the video pills of "Vitaliano chooses Italian", in which the comedian Giovanni D'Angella di Zelig discovers that from MD you can "go around the world in ten lanes", showing the numerous products of Italian tradition proposed by the sign. In his hilarious gags, Vitaliano will also be able to enjoy a beach holiday thanks to travel offers from the website www.md-viaggi.it, a travel agency similar to the one already started by LIDL. Since the first LIDL in the 90s, Italian discounters have evolved, changed and transformed to get closer to the needs of consumers. While becoming more similar to supermarkets, they have retained their identity, and have launched effective communication strategies in step with the times. However, now LIDL shoes are also available for less than 1000 euros (US$1,200). This is precisely the soundtrack of the television commercial, signed by the Sunny Milano agency which sees the testimonial protagonist of a sort of musical inside an MD, in which customers and employees sing happily, showing how the discount is a pleasant place. open, well-kept and informal where you can shop with joy. The spot ends with the claim: "Good shopping, Italy!" In the following commercials, Antonella Clerici's familiar smile is flanked by patron Patrizio Podini, founder and president of MD. His presence, the "putting your face" is functional to underline the reliability of the discount store and the quality of its products. In 2020, MD also begins a new digital communication project, created by the Deltastudio agency called Casa MD: in twelve videos, Antonella Clerici appears together with one of the chefs of La prova del Cuoco in a home kitchen, welcoming and familiar, preparing recipes made with MD products. In addition to the blog, the video recipes can also be found on MD's YouTube channel. MD's communication on social media is noteworthy. On Facebook, MD actively engages its large community through nice polls, and posts with funny and ironic copy. See here for more: https://lagazzettadelpubblicitario.it/casi-di-successo/discount-marketing/

Discount Retail Chain Aldi Poland (German family owned) will open a warehouse near Bydgoszcz (Aldi Polska). The discounter will open an additional distribution center. The warehouse with an area of ​​43,300 sq m will be located near Bydgoszcz. Aldi will employ around 200 people for the new distribution center. This is an important step to accelerate the development of the store network on the Polish market. The creation of the new warehouse is a natural consequence of the chain development in this region. The facility will perform warehouse and distribution functions and will serve Aldi stores in the northern part of the country. The brand, so far present mainly in western, central and southern Poland, is now appearing in all provinces this year. The region where Aldi develops the fastest is Pomerania, where a total of 13 stores will be built over the course of a year. "We are systematically developing the chain of stores so that our offer can be appreciated by new customers. Locations in the Pomorskie, Mazowieckie, Wielkopolskie and Zachodniopomorskie voivodships are particularly important for the network. This year alone, we are opening a total of over 40 stores, and in the coming years this number will continue to grow. The new distribution center will ensure efficient supply of stores in the northern and central part of Poland, where the largest number of Aldi facilities are being built. The existing warehouse in Chorzów will continue to supply stores in southern Poland", says Wojciech Łubieński, p.o. President of Aldi Polska. And he adds: "We want to be as close to customers as possible, and a properly selected store location and warehouse facilities are the key to success." The new warehouse will be BREEAM certified at the Very Good level. The building will also be equipped with a photovoltaic installation with a capacity of up to 500 kWp. The construction of the warehouse for the Aldi chain of stores will start at the beginning of October this year. The warehouse will have a total area of ​​43,300 sq m, of which offices will occupy 2,263 sq m. Aldi in Poland has 183 stores and employs nearly 3,500 employees. Aldi Polska is part of the Aldi Nord group of companies. The company offers customers in nine European countries high-quality products at the lowest possible price. The key to the Aldi Nord group's success is a team of over 77,000 employees in Belgium, Denmark, France, Germany, Luxembourg, the Netherlands, Poland, Portugal and Spain. See here for more: https://www.wiadomoscihandlowe.pl/artykul/aldi-otwiera-nowe-centrum-dystrybucyjne-to-wazny-krok-w-przyspieszeniu-rozwoju-sieci-sklepow-w-polsce

Discount Retail Chain DIA's (listed ad owned by LetterOne) global CEO of the Spanish discounter chain, Stephan DuCharme, will invest US $ 115 million in over the next three years. What is his strategy, in a context of inflation, falling consumption and price controls. And he says: "We have been in the country for 25 years: we have gone through everything" "We have been in Argentina for 25 years: we have already gone through everything," says the executive, about the disbursement that the company will make in the country in the next three years. At the national level, the Spanish chain plans to disburse US $ 115 million until 2023 and generate 3,000 new jobs, between direct and indirect jobs. With super low prices, the expansion of its own brand portfolio, more fresh food and personalized discount coupons, DIA seeks to become the neighborhood store where consumers can make all their purchases in one place. "We aim to create proximity spaces that bring together fresh and warehouse products in the same place, as is already the case in several of our points of sale. We want to replicate the concept in more stores," explains DuCharme, who assumed this position in May 2020 . To this end, the capital injection will be used, mainly, to open 263 proximity stores (which will be added to the current 904) and the remodeling of 370 existing ones, an initiative that it launched at the beginning of the year to expand its presence local and differentiate itself from the competition in the seven provinces in which it operates: Buenos Aires, Entre Ríos, Corrientes, Santa Fe, Chaco, Jujuy and Salta. For now, the next stores that will open will be franchises, a system that the brand relaunched in November 2020, with the aim of improving its service and attention. In this sense, it plans to end 2021 with 60 openings, double the number originally planned. There are already five in operation with the new scheme and the remaining 55 will be inaugurated before the end of the year. They represent 70% of the network of stores in Argentina. "Franchisees play a fundamental role in our growth. We want them to be merchants who live in the area where the stores open. They know their neighbors and their needs better than anyone. The intention is to focus on the opportunities that the plazas present. where we are present to take advantage of geographic concentration, and thus make logistics more efficient ", explains the CEO Stephan DuCharme. This commercial format implies a structural change, not only in the image, which includes the refresh of the façades and the gondola equipment. In an inflationary and regulated economy like Argentina, cost control and process efficiency are key to ensuring low prices. "It is about making the operation more efficient with a simple model that optimizes costs and an assortment based on what the customer demands, working together with suppliers to maintain quality", sums up the essence of the new axis. "We optimize", he replies, when asked how he deploys his strategy in a context of inflation and price controls, fundamentally, in basic necessities, such as those sold in his stores. That, however, also opens up opportunities. In a context of falling consumption and loss of purchasing power, more and more customers are looking for alternatives to lower their purchases. Attentive to this, in the next two years, DIA will increase its own brand portfolio by 50%, which has a key weight in its sales: it represents 35% of its tickets. The offer includes more than 1000 sweet and savory products, frozen, drinks, perfumery and cleaning; and more than 75 without TACC, suitable for celiacs. They are manufactured by 200 SMEs, mostly from the province of Buenos Aires, with which the development is jointly defined. He plans to add around 500 items. In line with the new eating habits, the differential will be in healthy categories at accessible values, driven by a 50% growth in sales of fresh products registered by the chain in the last year. "We will launch everyday foods, salads and other ready-to-serve dishes, as well as personal care and household items. We will work with suppliers to ensure low prices," anticipates DuChamre, who has more than 30 years of experience leading organizations. of the financial and industrial sector. To supply the stores with the new products, the chain will need to adapt its logistics network. That is why part of the announced investment will go to the construction of a new distribution center of approximately 400 square meters, the location of which has not yet been defined. "A higher delivery frequency and commensurate cooling is required," DuCharme clarified. Another point on which the company will emphasize will be the acquisition of customers through Club DIA, its loyalty program. 80% of sales are made through it, in a situation in which discounts often determine the purchase decision. In the last year, he gained 5% more partners. In total, it already has more than 3.8 million members. New members must download the mobile app to access the benefits. Although the printed card can still be used, supermarkets no longer offer it in this format for adherents. By digitizing the system, benefits were added. "Now, customers have their DIA card on their cell phone. In the aisles of the stores, we put up posters for them to join. They can download the app at the moment and use it immediately at the checkout lines," explained the executive. In the last year, Club DIA gained 5% more members. In total, it already has more than 3.8 million members. Thus, the mobile version of Club DIA offers exclusive discounts that are not available with the physical card, as well as the possibility of checking the offers brochure digitally, making savings calculations and preparing a shopping list. "Through the app, we offer additional coupons with personalized discounts, depending on the brands and product categories our consumers choose. We will expand services," he anticipated. Although the digital channel still represents a low portion of DIA's transactions in Argentina, electronic sales are on the rise. "With the pandemic, they went from practically 0 to 4%, with more than 10,000 unique users per month," DuCharme said. Club DIA went digital Faced with the rise of electronic commerce, DIA will bet on the integration of its channels. "The digital purchase does not replace the physical purchase. We are going towards a mix. In Argentina, we see that the preference for pick & collect is still stronger than for delivery. This is explained by the proximity of the stores by population density. We have 350 stores with withdrawal points. The idea is to bring the modality to all the branches, "he analyzes. DIA landed in Argentina in 1997 with its first location, located in Villa Devoto. In 1999, it opened its first distribution center in Vicente López. Today, it has five more: two in Tortuguitas, and the rest in Burzaco, Salta and Paraná. It employs 3,600 people. THE DAY NUMBERS In May 2019, the majority stake in DIA was acquired by the Letterone group, owned by Russian magnate Mikhail Fridman. Since then, and after years of numbers in the red, it began to reformulate its business model, with a focus on the most profitable formats. A strategy that it first launched in Spain and then extended to the other markets where it operates (in addition to Argentina, Brazil and Portugal), with 6,000 stores globally. Already in 2020, the company adjusted its numbers: it reduced its losses globally and recorded profits of almost 20 million euros in Argentina (approximately $ 2,294 million, according to the current exchange rate). In the country, net sales represented 813.8 million euros (around $ 93,374 million), according to the accounting balance corresponding to last year. DIA will open 263 stores But the results of the first half of this year (latest data available) showed a global loss of 104 million euros (translated into local currency, approximately $ 11,932), which, likewise, is 44% lower than the deficit of the first half of 2020 , "thanks to the reduction of financial losses, benefited by an active management of exchange rate risk". Net sales were down 9% year-on-year, according to the same financial results report. In Argentina, they plummeted 7%: they amounted to 426 million euros (around $ 48,878 million). If only the second quarter is observed, the country was the only one that managed to sustain a positive performance, since they rose by 2.7% measured in constant currency. They went to US $ 228 million (about $ 26,170) in this period. On the other hand, in Spain, they fell by 13.2%. The same happened in Portugal (-8.7%) and in Brazil (-13%). DuCharme attributes this difference to the local devaluation and to the "exponential growth of stocks in other markets during the first months of 2020, even greater than that experienced by Argentina at the beginning of the quarantine." Asked about how the end of the year is shaping up for the group, the executive prefers not to make projections, but anticipates that the company is heading towards "an improvement in the balance sheet" in its businesses in all countries, after concluding the expansion process in September. of capital and the refinancing of its liabilities, with a reduction of its net indebtedness in 1028 million euros (about $ 118,000 million). See here for more: https://www.cronista.com/apertura-negocio/empresas/el-millonario-plan-de-dia-precios-super-bajos-mas-productos-de-marca-propia-y-descuentos/?utm_term=Autofeed&utm_medium=Social&utm_source=LinkedIn

Discount Retail Chain Aldi UK (German family owned) said it plans to invest £1.3 billion (US$1.8 billion) over the next two years, opening 100 new stores. Aldi, Britain's fifth largest supermarket group with an 8% market share, said 2020 sales in the UK and Ireland rose 10.2% to £13.5 billion (US$ 15.8 billion) but operating profit fell 1.2% to £287.7 million (€US$400 million) due to the costs of the pandemic. Giles Hurley, chief executive officer for Aldi UK and Ireland, said, “As well as delivering record sales, we continued to invest for growth, deploying over £600 million (US$720 million) in stores and distribution centres across the UK. This helped to create thousands of much-needed jobs and support for British farmers and manufacturers. “Whilst the cost of responding to the pandemic dampened profits, our decision to return business rate relief was the right thing to do.” Hurley also praised Aldi employees for their outstanding efforts during the pandemic saying, "Despite some of the most difficult conditions our sector has ever seen, our people underlined the strength, success and spirit of our business." Investment Highlights The investment will see the creation of more than 2,000 new jobs next year, adding to the 7,000 permanent roles already created over the past two years. The company will also expand its logistics infrastructure, including a new 1.3 million square-foot site in Leicestershire. It will also invest in developing its click and collect service and other technological initiatives. This includes the pilot of a new Aldi checkout-free concept store in Greenwich, London, which will use a system of cameras, sensors and artificial intelligence to identify the items customers take from shelves, eliminating the need to go through a checkout. Last year, the discounter invested an additional £1 billion (US$ 1.35billion) in UK companies to source British goods, taking the total to £9 billion (US$ 12.2billion). It also reaffirmed its commitment to buy British wherever possible. 'Redefining The Discount Supermarket' Hurley added, “We’re continuing to gain even more customers – with over 60% of households shopping with Aldi in the last year. By redefining the discount supermarket in the UK, creating more places and more ways to shop with us, we are excited to provide millions of new customers with access to Aldi’s award-winning quality and unbeatable value.” The discounter has pledged to halve the volume of plastic packaging in its operations by 2025 by removing over two billion pieces of plastic from circulation. In April, it launched a trial at its Ulverston store in Cumbria to sell packaging-free products to help customers shop more sustainably. See here for more: https://www.esmmagazine.com/retail/aldi-uk-sees-sales-up-in-2020-announces-investment-of-1-3bn-147692

Initially, only one test is planned in a shop in the Netherlands. But the discounter has significantly greater ambitions with the new technology. The new store in Utrecht Customers can check in at the new branch using their mobile phones. The purchases will be settled automatically later. More and more German supermarket chains and discounters are experimenting with supermarkets without cash registers, where customers check in via mobile phone and the purchases are automatically billed later. Now Aldi Nord has also announced such a store. A new Aldi store in the city center of Utrecht in the Netherlands is expected to have no cash register at all from the beginning of 2022. Customers check in and out using a QR code using an app. The queue at the cash register is no longer necessary. Sensors on the shelves and special camera technology record which goods customers put in their shopping carts. In this way, all purchasing movements in the store should be reliably assigned to the correct customers. When they leave the store, all purchases are billed automatically and contactlessly. The goods are paid for using the payment method that the customer has previously selected in the app. Aldi Nord is not the first retailer to test such concepts. For example, the discount sister company Aldi Süd is testing a similar technology in a shop in the Greenwich district of London. So far, however, only company employees have been allowed to shop there. When the test will also be opened for customers, Aldi Süd does not say when asked. Rewe, too, has now set up a store called “Pick and go” where customers can pay automatically via the app. The supermarket chain also first tested the concept with employees. In the Rewe store, however, it should be possible at the same time to shop both cashless and traditionally via the till. Amazon is a pioneer in this area. The online giant is already using its self-developed “Amazon Go” technology in numerous stationary stores in the USA. Amazon has recently opened its own cash register in London. However, the Amazon Go shops in London are not full-fledged supermarkets, but convenience shops that have a limited range in a small area. They mainly offer goods for direct consumption, such as drinks, sandwiches or pre-made salads. For its test in Utrecht, Aldi Nord does not use its own technology, but has entered into a partnership with the Israeli start-up Trigo. The company has developed an infrastructure for retail stores that uses artificial intelligence to ensure a high level of reliability when assigning purchases to customers. Rewe also uses Trigo technology in its test shop in Cologne In order to bind this coveted start-up even closer to itself, Rewe even took a minority stake in Trigo. However, there is no exclusive agreement so that Trigo can also work with competitors. “We are very proud to work with Aldi because the brand stands for innovation in food retailing. Thanks to the technology used in the store, customers can shop comfortably, while Aldi has a better overview of the availability of goods, ”explains Michael Gabay, co-founder and CEO of Trigo. Reordering of products In fact, the discounter is not only expecting better service for its customers from the new technology. The automatic recording of purchases in real time can also make processes in the store more efficient and help to better organize replenishment. For example, the reordering of goods for the shops could then be completely automated and accelerated. However, the app offers customers even more options than cash-free shopping: Customers can use the app to manage their purchase histories, request reimbursements or provide feedback on their purchases. In this way, they also receive an electronic receipt, which saves the otherwise legally required printout of a receipt. Aldi expects a lot from the technology. The test in Utrecht, which is initially scheduled for twelve months, is intended to provide “important insights into future possible uses of the technology in discount stores”, as the company reports. The city center location is ideal to be able to test the system with high customer frequency during the day. In order to prevent possible worries for customers, the discounter emphasizes at the same time that all data protection standards are of course adhered to. "The intelligent technology ensures, for example, that facial data is filtered out directly and not processed," says the message. See here for more: https://www.handelsblatt.com/unternehmen/handel-konsumgueter/discounter-einkaufen-mit-qr-code-und-kamera-auch-aldi-nord-eroeffnet-einen-laden-ohne-kasse/27667762.html?ticket=ST-5487302-zHT3NLPdIRWsPY6Af7ug-ap6

Discount wholesale retail chain Costco’s fourth quarter and full year results and the challenges it is seeing with higher costs, shipping capacity and labour shortages. Fourth quarter and full year key numbers Q4 total revenue up 14.8% to $62.7bn, with full year revenue up 17.5% to $196.0bn Comparable sales for the quarter (ex-fuel and currency impacts) up 9.4%, including up 10.3% in the US, 6.7% in Canada and 7.3% in other international markets Q4 ecommerce comp sales up 8.9%, up 42.6% for the full year Operating income for the quarter up 15.2%, and for the full year up 23.4% to $6.7bn, representing 3.4% of revenue Net income up 16.8% for the quarter and up 25.1% for the full year Curbside test discontinued In the fourth quarter, traffic increased 9.2% globally, with average basket up 5.8%. Ecommerce also continued to grow, building on a strong performance from last year. Sales through Costco Logistics, it’s delivery service for big and bulky items that was brought in-house last year, were up 130% and represented 24% of US ecommerce sales, up from 11% last year. However, its curbside test in New Mexico has been discontinued, with the company noting that it did not see much traction with it. This is surprising given the success that Sam's Club is having with its club pickup programme. We expect Costco to look at this again, possibly in higher density markets. Rolling-out digital payments The retailer is also testing several other digital programmes. These include digital payments within the Costco app. This is in pilot across several locations, with full roll-out expected by the end of October. It is also introducing the capability for members to view their receipts online and has improved its mobile site with a new look and feel and enhanced information. Grown revenue by more than $43bn over last two years Not only are these an outstanding set of results from Costco for the last 12 months but follow a strong performance in the previous year. Over the last two years, Costco has increased its revenue by more than $43bn, up 28.3%. During 2021, the strong performance was broad based across all its global markets. Delaying price increases improving its value proposition As with the wider industry, the retailer is facing into with cost, supply chain and labour challenges. Inflationary factors are broad based, but is seeing major increases in shipping costs, pulp and paper goods, resin and plastic products and metals. Products such as plastic cups, plates and wraps are up in the 5-11% range. Oil, coffee and nuts are at five-year highs. It estimates inflation on the products it sells to be running at 3.5-4.5%, up from its third quarter estimate of 2.5-3.5%. With Costco typically among the last of its peer group to raise prices in an inflationary environment, its value proposition could resonate even more strongly given the dynamics of the market. Supply chain issues expected to continue into 2022 Within the supply chain, it is experiencing port delays, container shortages, COVID-19 disruptions, and shortages on various components, raw materials and ingredients. This is leading the company to sell-out quickly of items. Labour cost pressures are being driven by driver shortages. Several suppliers have requested longer lead times, especially on ingredients and packaging. It expects the issues will extend into 2022. Three ocean vessels chartered for next year Consequently, Costco has also chartered three ocean vessels for the next year to transport containers between Asia and the US and Canada. It’s leased several thousand containers for use on these ships. Every ship can carry 800 to 1,000 containers, with plans to make approximately 10 deliveries next year. This highlights the scale of current industry challenges; not every retailer will be able to do this. First club set to open in New Zealand In the year ahead, the company plans to open around 25 new clubs, including its second units in Chain and France and its first store in New Zealand. Capital expenditure is expected to be in line with last year’s $3.6bn spend. See here for more: https://retailanalysis.igd.com/news/news-article/t/costcos-revenue-soars-175-to-196bn-in-2021/i/28813?utm_source=linkedin&utm_medium=post&utm_campaign=retail_analysis&utm_content=Stewart

Rumors are circulating in the market that the German retail company SIA Lidl Latvija has already placed orders for suppliers waiting for a signal on the opening of the first stores in Riga, Liepaja, Tukums, Jelgava, Jēkabpils, Rēzekne, Valmiera, Daugavpils and other Latvian cities. Lidl enters Latvia later than originally planned, the opening of the first stores was postponed due to the pandemic. On January 25, 2021, the logistics center of the Lidl retail chain was opened in Riga. SIA Lidl Latvija announced that the opening of the Lidl Latvija logistics center is the basis for starting the company's operations in Latvia and Estonia. After the opening of the logistics center, a chain of stores will also start operating. Lidl Latvija logistics center at 131 Dzelzavas Street, Riga, was put into operation in 2020. In July, construction works started in 2018, more than EUR 55 million was invested. The logistics center covers an area of ​​51,000 square meters and is also the headquarters of Lidl Latvija. As early as 2021. At the beginning of the year, LIDL Latvija brought together the teams of all future stores and logistics centers, and the company employed more than a thousand people throughout Latvia. The first store of the German retail chain Lidl in the Latvian capital Riga was completed in August 2019 . Currently, more than 12 Lidl store buildings have been built in Latvia - more than six of them are in Riga, and the rest are in Liepaja, Tukums, Jelgava, Jēkabpils, Rēzekne, Valmiera, Daugavpils. Lidl Latvija was registered in October 2016 and has a share capital of EUR 251.5 million. The sole owner of the company is the German CE - Beteiligungs-GmbH. Board of SIA Lidl Latvija: Karl Ragnar Jakob Josefsson, Chairman of the Board, CEO Lidl Latvia and Lidl Estonia Gennady Denisjuk, Member of the Board, CFO in Latvia and Estonia Arunas Dzikas, Member of the Board, Director of Real Estate Development in Latvia and Estonia Alexandru Mag, Member of the Board, Vice President of Purchasing and Marketing in Latvia and Estonia The first store of the German retail chain Lidl in the Estonian capital Tallinn was completed in June 2020 . Estonian job advertisements show that Lidl is looking for employees for stores in Tallinn, Tartu, Pärnu, Narva and Jõhvi. Lidl has acquired more than 10 plots for future stores in Estonia. Preparations for the construction of the sites owned by Lidl and the construction of stores are underway. The company LIDL EESTI OU was registered in October 2016, the main activity of the company so far has been the purchase of real estate and the construction of stores. The sole owner of the company is the German CE - Beteiligungs-GmbH. What's next? We can already see the speeches from separate networks in Latvia and Estonia and action to emphasize low prices, private label goods, talk of local buyers ’love of local products, intensive work with small producers (although those small ones don’t think so), the fact that Lidl is a“ discounter ”for customers with a certain level of income, that there are no places that evolve the classic Jan-Benedict Steenkamp model is going to be ignored, underestimated, and despised. We have already written that using Lidl's "killer advertising" - dominance on the air, local celebrities, the consumer will quickly become a "local", "defender of the little ones", "quality". And the general offer of the service - a bakery, interesting food offers from various countries, relevant seasonal goods will be placed next to the hypermarkets - the consumer will not feel that he is visiting a "computer". Local suppliers in both Latvia and Estonia will give Lidl the prices they need - “we sell, like everyone else - because of the good supply conditions and short settlements, and the hope of entering wider European waters (whether it happens philosophically). trades at a loss ’. Yes, Latvia and Estonia had a unique opportunity to replicate Norwegian history when local Norwegian networks managed to drive Lidl out of the country, but homework had already to be done. Discounter Lidl will systematically increase its market share as they have no format competitors in both Latvia and Estonia. The market capacity for low-price format stores, according to Germany and Poland, is about 30 percent and so far only Lidl is claiming this share. Lidl paid special attention to safe shopping and compliance with stricter requirements. On the opening day, additional security staff was used to regulate the flow of customers, trolley handles and shop surfaces were additionally disinfected, and customers were informed about compliance with security requirements. Protective face masks are also distributed free of charge. Currently, there are a total of 58 retail chain stores in Lithuania in 23 cities of the country - Vilnius, Kaunas, Klaipėda, Šiauliai, Alytus, Marijampolė, Kėdainiai, Telšiai, Kretinga, Mažeikiai, Tauragė, Jonava, Panevėžys, Ukmergė, Utena, Plungė, Palanga, In Elektrėnai, Visaginas, Šilutė, Radviliškis, Vilkaviškis and Druskininkai. Characteristics of Lidl stores: ~ 3,200 range of food and industrial goods, store area ~ 1,400 sq. M. meters, the shops have ~ 12 checkouts (standard checkouts + self-service checkouts), the usual opening hours of the shops are from 8 am to 10 pm. Lithuanian buyers quickly fell in love with Lidl stores, allowing Lidl Lietuva to break into the TOP 3 of the largest retailers in terms of turnover and overtake the market's former Rimi and Norfa. See here for more: https://pricer.lt/posts/445-lidl-skaiciuoja-paskutines-dienas-iki-ekspansijos-i-latvija-ir-estija-pradzios-dublis-2

Système U's private label selection is the most eco-friendly in France, a new study has shown, with some 27.2% of the retailer's own private label branded products boasting an Eco-Score 'A' rating. (see here for more on DRC's Private Label Brand development services) As journalist Olivier Dauvers revealed on his blog, domestic retailers perform relatively strongly when it comes to the eco-friendly qualities of their private label selection, with 25.3% of Casino's products, 24.2% of Leclerc's products, 24.1% if Auchan's products, 24.4% of Intermarché's products and 23.9% of Carrefour's products receiving an Eco-Score 'A' rating. At Lidl, however, the number of products earning an 'A' rating stands at 17.6%, while at Aldi, it's 15.9%. Lidl and Aldi also boast the highest percentage of products to earn an Eco-Score 'E' rating, of 17.0% and 17.6% respectively. The study was carried out by ScanUp, which developed the Eco-Score ranking to assess the environmental impact of food products, with 'A' ranked products having the lowest impact and 'E' ranked products boasting the highest. The Eco-Score is calculated on the basis of the Life Cycle Analysis (LCA) of each product from the ADEME Agribalyse database. Consumers can scan use the ScanUp application to scan the barcode of a product and obtain information on its nutritional quality and environmental impact. The Eco-Score is the result of collaborative work between 10 independent players: ScanUp, Eco2 Initiatives, Etiquettable, Yuka, Open Food Facts, Frigo Magic, La Fourche, Marmiton, Food Chéri and Seazon. See here for more: https://www.esmmagazine.com/private-label/systeme-u-boasts-eco-friendly-private-label-range-france-study-finds-147261?preview=1

The main purpose of deodorants is to prevent the smell of sweat. However, not all products keep their promises. The German independent testing institute and magazine Stiftung Warentest tested 19 deodorant sprays. You can find out here which are the best and which products you can safely keep your hands off of. In the 5/2021 magazine, Stiftung Warentest tested a total of 19 deodorants, ten "women" products and nine unisex deodorants. It was noticeable that only a few of the pump and aerosol sprays were able to prevent sweat odor for 24 hours. Only six deodorants received the grade "good", including a unisex product from Sebamed and five deodorant sprays for women from Edeka, Netto Marken-Discount, Garnier, Nivea and Fa. The prices per 100 milliliters were for the well-rated deodorants between EUR 0.48 and EUR 2.19. The test winner among the unisex deodorant sprays is the Sebamed Fresh Deodorant Fresh (on offer) Among the deodorants for women, the Tropic deodorant from Edeka's own private label brand Elkos secured first place with the rating "good" (grade 2.3). (see here for more on DRC's Private Label Brand development services) Natural cosmetics with disappointing results In the deodorant spray test by Stiftung Warentest, natural cosmetics products performed significantly worse. The testers also examined five natural cosmetic sprays. Two of them received the grade "satisfactory" and three the grade "poor". These products could not produce a great difference in odor between an underarm sprayed with deodorant and an untreated armpit. So expensive doesn't always mean better. The detailed test report can be found on test.de. See here for more: https://www.chip.de/news/Billig-Deo-ist-Testsieger-Bei-Stiftung-Warentest-fallen-bekannte-Marken-durch_183668129.html

The prices for fruit and vegetables rose sharply in some cases in August. Hartz IV recipients should only get three euros more per month from January. That is not enough to eat healthily, warns the social association VdK. Social associations and nutrition experts warn of the social and health consequences of the sharp rise in prices for healthy food. "For low-wage earners and people with basic security, fruit and vegetables are finally becoming a luxury item that they can no longer afford because of the price increases," said the president of the social association VdK, Verena Bentele, the "Tagesspiegel". According to the Federal Statistical Office, food prices rose by 4.6 percent year-on-year in August. In the end, consumers had to pay nine percent more for vegetables than a year ago, and lettuce was almost 38 percent more expensive. The price increase for fruit was 2.5 percent. "Government ignores vital needs" In the Hartz IV standard rate, just five euros a day are earmarked for food, criticized Bentele. "That was not enough for a balanced diet, as studies have shown," said the VdK President. "The fact that the standard rate has now been increased by a ridiculous three euros confirms how consistently the government ignores the vital needs of people with basic social security." The Hartz IV standard rate for single adults is to increase by three to 449 euros (US$540) a month in January. The cabinet had initiated a corresponding ordinance from the Federal Ministry of Social Affairs last week. Overall, recipients of unemployment benefit II, social assistance and basic security in old age and in the case of reduced earning capacity receive 0.76 percent more money. The currently significantly increasing consumer prices have not yet been included in the calculation of the rates; they should only be taken into account for 2023. No VAT on healthy foods The German Diabetes Society (DDG) and the German Alliance for Noncommunicable Diseases (DANK) demanded that healthy foods such as fruit, vegetables and nuts be exempt from VAT. In return, unhealthy, high-sugar products, such as soft drinks, should be subject to a higher tax of 29 percent. "Families with a weak socio-economic background will also benefit from this, as the access to fresh fruit and vegetables is made easier for them financially," said DDG managing director Barbara Bitzer to the "Tagesspiegel". Healthy eating should not be a luxury. See here for more: https://www.tagesschau.de/inland/vdk-obst-101.html?xing_share=news

Discount Retail Chain Lidl Spain (owned by the German Schwarz Group) will make a record investment in Spain of 1.5 billion euros (US$1.8billion) in the period 2021-2024, in which it plans to open more than 150 stores and four logistics platforms to accelerate its expansion in the national market. "We want to promote and accelerate the growth of the company in Spain through a sustainable and continued expansion. We want to position ourselves as the first purchase option for the Spanish consumer", said the general director of expansion & real estate of Lidl Spain, Imanol Zabala. In this way, the strategic plan of the supermarket chain foresees the opening of 150 establishments and the start-up of four new stores in these four years that will be located in Nanclares de la Oca (Vitoria), which will be inaugurated in October, Escúzar (Granada), Martorell (Barcelona) and Parla (Madrid). In addition, Lidl foresees the opening of 40 new supermarkets with a record investment of 400 million euros and creating 1,000 new jobs in the national market in the remainder of the year. The supermarket chain in its acceleration in Spain will seek "always the best location" with metropolitan stores with flexible constructions adapted to a greater available space, in emblematic locations and boost its presence in markets or shopping centers. "We are energizers and we promote the area in which we are because we believe in the neighborhood," Zabala stressed. In this way, the supermarket chain finalizes the opening of new supermarkets in Spanish markets and does not rule out going hand in hand with promoters to accelerate its growth in the national market or to expand its business beyond 'retail' such as housing developments as the firm has done in other countries. In their 'roadmap' for the next four years they will focus on growing in the Community of Madrid, since they consider that they have room for growth. "We are committed to all of Spain, but we emphasize Madrid because we see that we have more growth potential here as we are not as well established as in other areas," said the company's general director of expansion. However, the directors of the firm have made clear the will of the company not to sell any assets despite the interest of funds. "The sale of any of our supermarkets or logistics center assets is not on our horizon. The funds show interest in anything that is reliable," stressed the regional director of Expansión & Inmuebles de Lidl in the Community of Madrid, Albert Lavin. For his part, Zabala has stressed that the company does not put a ceiling on its growth, which a few years ago had reached 800 stores, a record that it will reach when this strategic plan ends. "We do not have a specific figure set, because we see that we have a lot of growth potential throughout Spain and we will see to what extent the client continues to accept us," he reiterated. WANTS TO BE THE NUMBER 1 PARTNER OF THE REAL ESTATE SECTOR IN MADRID In this way, the Community of Madrid is Lidl's great bet for its expansion in Spain, where it will open 11 new stores this year, of which six are still pending to open in the remainder of the year and will be located in San Sebastián de los Reyes, Valdemoro, Torrejón de Ardoz, in the Parque Oasis shopping center, Guzmán el Bueno and Marcelo Usera, after making an investment of more than 50 million euros (US$60million). The regional director of Expansión & Inmuebles of Lidl in the Community of Madrid, Albert Lavin, has specified that in the chain's strategic plan it is planned to launch more than 50 new establishments with an investment of more than 200 million euros (US$240million). In addition, the construction of a new warehouse in Parla, thus creating 1,200 jobs by 2024 only in the Spanish capital. "As a company we are a guarantee of reliability and solvency for our partners and that is how we want to transmit it to the real estate community of Madrid. We want to be their number one partner and we are looking for long-term partners to help us develop our projects throughout the region", has stressed. Lavin has specified that the chain is looking for plots from 1,800 square meters and that they adapt to all styles. "We can be partners of people who want to develop a building too and do not know how to develop the ground floor or be partners of developers. In this way, Lidl will continue to generate wealth and employment in Madrid, where its activity already generates some 12,500 jobs, between direct, indirect and induced, according to a study by the consulting firm PwC. This volume of activity also translates into an impact on the Community's GDP of more than 575 million euros (US$690 million) per year, which represents 0.27% of its total GDP. The impact generated by Lidl's activity in the Community of Madrid is also transferred to the national level. According to the PwC report, the company contributes more than 5.8 billion euros to GDP each year, which already represents 0.52% of the country's total, and is responsible for some 125,000 jobs, between direct, indirect and induced, a figure that represents 0.63% of the total for Spain. See here for more: https://amp-europapress-es.cdn.ampproject.org/c/s/amp.europapress.es/economia/noticia-lidl-realizara-inversion-record-1500-millones-cuatro-anos-acelerar-expansion-espana-20210923133042.html

Discount Retail Chain Lidl Spain (owned by the German Schwarz Group) offers apples and pears of national origin throughout the year in its more than 630 stores in Spain, thus putting in value the quality of the fruits produced in the territory in a context where imports from other countries such as Italy, France or Portugal have more and more weight in the sector. "Our commitment to Spanish apples and pears is a new example of Lidl's firm commitment to the garden of our country, of which we have been its main customer for years, promoting its development through our purchases", said the General Director of Purchasing of Lidl Spain, Miguel Paradela. "Regarding these two fruits, we work with suppliers from a large part of Catalonia, but also from other regions such as Castilla y León in the case of apples or the Region of Murcia in the case of pears, progressively bringing fresh products and of proximity to our clients ", has specified Paradela. Depending on the time of year, Lidl markets different varieties of Spanish apples and pears, with Golden, Granny and Fuji being the most common in the first case and Conference, Blanquilla, Ercolina and Limonera the most common in the second case. In 2020, Lidl acquired more than 1.6 million tons of fruit and vegetables in the country, exporting 84% to some thirty countries. These data consolidate it as the first client of the Spanish garden and its main export platform. According to a study by the consulting firm PwC, the supermarket chain already buys more than 16% of all the fruit and vegetables produced in Spain, also concentrating up to 14% of all its exports. According to the report, currently a total of 45,000 indirect and induced jobs in the sector are already linked to the company's activity. See here for more: https://amp-europapress-es.cdn.ampproject.org/c/s/amp.europapress.es/economia/noticia-lidl-incrementa-17-compras-manzanas-peras-espanolas-dos-anos-20210916104220.html