Discount Retail Chain Profi (owned by Polish Enterprise Fund) recently inaugurated a new store format in Romania, a small-format urban store type under the name Profi City, and plans to continue expansion with this format by offering a franchise option. The first such stores were opened in Cluj, Napoca, where Profi had bought five supermarkets from Alimrom, and re-branded them as Profi City. “Tradesmen who wish to run their own business but do not have the money and all the right knowledge to do so will get support from Profi that, in turn, for the success of the business, will benefit from their experience and commercial skills,” said Profi Rom Food General Manager Pawel Musial. Unlike the standard Profi stores, those in the City category will have a more restricted, yet better adapted range of products to meet the needs of proximity clients. “Just the same, in proportion with the size of their sales area, the number of employees of such stores will be smaller, approximately 12 people, often relatives, will give the stores more of a family-feel,” according to the retailer. Profi's move is similar to Metro's neighborhood stores LaDoiPasi and comes after a neighborhood shop operator, which was also running under franchise, Dinu Patriciu's Mic.ro went bankrupt. Crunching the numbers: Can Ovechkin catch Gretzky? With these openings, Profi's network grew to 162 stores in 88 localities in 36 counties, becoming the the second largest network on the modern retail market in Romania, according to the company. According to previous information, Profi plans to invest some EUR 18 million in expansion projects in 2013 in Romania, including inauguration of new stores and potential acquisitions of other retail chains on the local market. This is Profi’s third acquisition in Romania so far, after buying Albinuta in 2007 and Alcomsib in Sibiu in 2012. See here for more: https://www.romania-insider.com/discounter-profi-launches-smaller-city-format-in-romania-plans-franchise-based-expansion

Discount Retail Chain Lidl Spain (owned by the German Schwarz Group) continues the growth path of recent years in Spain and at the same time underpins its future plans in the country by announcing the expansion of its headquarters, located in the town of Montcada i Reixac (Barcelona). The project will involve a total investment of 19 million euro (US$23million) and will allow the addition of more than 12,000 m2 of facilities to the company's national headquarters, practically doubling its current surface (from 15,000 m2 to 27,000 m2) once the works are completed in summer 2022. Lidl estimates that the new office will have the capacity to accommodate more than 1,000 employees of its workforce. "As a company, we are demonstrating with facts our firm and decided commitment to the Spanish market, being the deployment of our ambitious expansion plan an example of this. In recent years we have significantly improved and expanded our network of stores and warehouses in Spain and we will continue to do so, so we need to adapt our organizational capacity to this new and demanding reality", says Imanol Zabala, general director of Expansion and Real Estate at Lidl Spain. Investment of 1,500 million in four years Lidl currently has more than 630 points of sale and 11 logistics warehouses in Spain, a structure that makes it possible for the company to gain more and more presence throughout the territory and bring its offer closer to the Spanish consumer. Far from stopping here, Lidl will continue to generate wealth and promote the economic reactivation of the country with an accumulated investment of 1.5 billion euro (US$1.8 billion) in the period 2021-2024, which will lead to the opening of the doors of some 120 stores and four warehouses (or whatever it is). same, between 30 and 40 stores and a logistics center each year). Montcada i Reixac, paradigm of contribution to local development Montcada i Reixac is the paradigm of Lidl's contribution to economic development and the generation of wealth and employment at the local level. Since its arrival in the municipality in 2003, the discount chain has invested around 150 million euro (US$ 180million) in the construction of its central head offices (from where it manages all its activity in Spain), a logistics center (which mainly serves its commercial store network in Catalonia) and a store (opened at the end of 2020 after an investment of 3.6 million euro (US$ 4.3million) for its construction and equipment and the creation of 18 new jobs). With this investment, the company has also undertaken actions to urbanize the environment in which it operates (the 'La Granja' industrial estate), thus contributing decisively to the revitalization of the productive fabric of the municipality. See here for more: https://www-eleconomista-es.cdn.ampproject.org/c/s/www.eleconomista.es/empresas-finanzas/amp/11334570/Lidl-invertira-19-millones-en-la-ampliacion-de-sus-oficinas-centrales

Discount Retail Chain Aldi Polska's (German family owned) assortment includes over 1,200 products marked with a white and red Polish flag logo, purchased next door from local Polish producers. 'For years we have been buying in the neighborhood, from local farmers. We do it because we know how important it is for customers to find variety and quality on store shelves,' says Przemysław Nowak, director of the category management department at ALDI Polska. Thanks to cooperation with local suppliers, ALDI stores regularly receive products with certificates such as: Quality and Tradition or Culinary Heritage. The chain cares about clear and accurate marking of the country of origin of the offered products, therefore the labels include: EAN code or PLU code, information about the supplier and the country of origin of the product. Products of Polish origin are additionally marked with a special symbol, Polish Product. See here for more: Aldi: Ponad 1200 produktów od lokalnych producentów - Detal (dlahandlu.pl)

Discount Retail Chain Netto Polska (owned by danish Salling) continues the process of dynamic conversion of stores. 85,500 customers were present at store openings, 23 new cities whose residents can visit stores in the Netto 3.0 format, 3,000 products in a permanent offer, including 1,000 own private label brands, whose products are on the shelves of newly opened stores, these are just some of the numbers describing the ongoing from May this year. The process of reopening Netto stores in Tesco stores Netto is an exhibitor of the Shopping Center Forum 2021 CEE Since the approval of the Polish part of Tesco by the Salling Group by UOKiK in March this year, the Danish capital group has been conducting advanced preparations for the conversion of the acquired outlets into modern Netto 3.0 stores. The format, characteristic of Netto stores, is inspired by the Scandinavian style, the main features of which are, among others, functionality, minimalism and a reference to nature. It manifests itself in wide alleys, unique lighting or wooden elements of the decor, which provide buyers with a friendly atmosphere for shopping. Net exceeds the total of 50 stores opened in the conversion process From the end of May, as a result of the conversion, six more Netto stores are opened in Poland every Thursday on Thursday. This process started on May 27, when six stores were opened, including one located at ul. Duńska in Szczecin 400. Netto store in the country. In turn, on Thursday, July 29, Netto opened its stores in Inowrocław, Żarów, Rybnik, Kamionki, Tuszyn and Biskupiec, thus exceeding the total number of 50 stores opened in the conversion process. This is a milestone on the way to the planned opening of over 150 Netto stores by the end of 2021. 'We assess the course of the process of opening new stores with great satisfaction as a success. It should be emphasized that enabling customers to visit our stores in a timely manner in other cities is a joint success of Netto and a number of co-workers, as the transformation of each store requires enormous amounts of work, mobilization and team cooperation. Many subcontractors are involved in the conversion, including so far no less than 20 construction companies, thanks to the efficiency of which we have expanded the Netto retail space by as much as 44,600 sqm within two months.' says Krzysztof Kamiński, operating director of Netto. The involvement of all participants in the process is invaluable. 'We deserve a huge thank you to all employees, both administrative and operational, serving the Netto stores. Netto celebrates each weekly inauguration together with its customers. Both on the opening day and on the following days, customers can count on special attractions and special promotions, under which prices are lower by up to several dozen percent. One of our competitive advantages is the concept of Netto 3.0, which is synonymous with a modern grocery discount, being close to the customer, offering a wide range of products at affordable prices and an atmosphere not available in other discount stores. After crossing the threshold of each Netto 3.0 store, you can immediately notice that it offers a unique shopping experience', adds Kamiński. Net in 3.0 format Netto 3.0 provides a wide selection of fresh fruit and vegetables (over 150 species), gluten-free, lactose-free and sugar-free products, as well as BIO certified products. Netto also does not forget about people who choose convenient and quick solutions, the TO GO zone was created with them in mind, where customers will find a wide range of ready meals. A characteristic feature of each Netto is a wide range of products (including many Netto private label products) at attractive prices. Netto is a discount retail chain which has developed the position of one of the largest retailers in our country over the past 25 years of its presence on the Polish market. The company has about 400 stores in Poland and three distribution warehouses, employs over 5.5 thousand. people. This ownership status gives the retailer the third position on the Polish discount market. The concept of Netto Polska is to be close to your customers. Stores are located near housing estates. The assortment includes the vast majority of products from Polish suppliers. Outside of Poland, the network is present in Denmark and Germany.

Owner of Discount Retail Chain Biedronka (Poland) and ARA (Colombia) Jerónimo Martins closed the first half with a net profit of 186.1 million euros, a growth of 78.9% compared to the same period in 2020. The net profit per share was 0.30 euros, a value that compares with the 0.17 euros from the same period of the previous year. “Our performance in these first six months shows the strength and competitiveness of our business models in all countries where we have operations. Leading discounter Biedronka in Poland continued to guarantee consumer preference, showing that it is able to maintain momentum and create differentiating commercial opportunities in difficult times”, says Pedro Soares dos Santos, CEO and president of the company, quoted in a statement sent to the CMVM. The company's sales stood at 9,902 million euros, a year-on-year increase of 6.3%. EBITDA grew 12.6% to 715 million euros. Operating results grew 25.7% to 343 million euros. The investment was 200 million euros, a value that compares with the 142 million euros for the same period in 2020. Investment that was divided into 120 million euros by Biedronka, 43 million euros for distribution in Portugal, 19 million euros by Ara, with 18 million being channeled to other investments. In the business in Portugal, supermarket chain Pingo Doce achieved sales of 1.9 billion euros, an increase of 4.6% compared to the same period of the previous year. Despite the growth, the company emphasizes that the banner continued to feel the effects of the limitation on the number of people inside the store. On the other hand, Pingo Doce opened three stores and renovated seven. In the case of Recheio, sales remained in line with the first half of 2020, amounting to 398 million euros. Growth in Poland was more pronounced. Biedronka registered an increase in sales, in local currency, of 9.8%. In euros, sales were 7.0 billion, 6.8% above the first six months of 2020. In the case of Ara, a brand that operates in Colombia, sales rose 11.9% to 473 million euros. See here for more: https://www.hipersuper.pt/2021/07/28/lucros-da-jeronimo-martins-aumentam-789-no-primeiro-semestre/

Discount Frozen Foods Retail Chain Iceland latest moves have the potential to save 96 tonnes of plastic a year. It has extended its efforts with plastic-free and ‘reduced plastic packaging’, using paper and cartonboard for potatoes and fish. The frozen discounter food specialist has begun selling British White Potatoes in paper bags, replacing a plastic version. Meanwhile packs of four Atlantic Cod Fillets and eight other fish lines have been moved to a cartonboard box, still using some plastic but 90% less than the old version. The new potato packaging has launched in 33 stores in London while the fish packaging is being trialled in 17 stores in the Manchester area. Iceland has been experimenting with plastic-free and “reduced plastic packaging” alternatives since the start of last year, when it came up with new solutions for 38 fruit & veg lines such as paper bands for spring onions. In April this year, the retailer moved Pink Lady Apples from plastic to a cardboard tray with a paper band in all stores. The latest moves on potatoes and fish have the potential to save 96 tonnes of plastic a year, according to Iceland, which is monitoring customer feedback. The new solution for fish could alone save a claimed 84 tonnes of the material a year in the 17-store trial. “Removing and reducing plastic from our new potato and fish packaging formats will help our customers have a more sustainable fish and chips dinner whilst helping us to reduce our plastic footprint,” said Iceland MD Richard Walker. “If successful, this trial will continue to support the permanent introduction of plastic-free and reduced plastic packaging alternatives, taking us another step closer towards meeting our commitment.” Since early 2018, Iceland has been committed to eliminating plastic packaging from own label lines by the end of 2023. In an update in 2019, the business said it had so far removed 3,794 tonnes. In a blog in June this year, Walker warned meeting the 2023 deadline was looking “increasingly challenging” after a surge in demand for packaged goods in stores during the pandemic. See here for more: https://www.thegrocer.co.uk/iceland/iceland-trials-plastic-free-and-reduced-plastic-packaging-for-potatoes-and-fish/657929.article?utm_source=Special%20Edition%20(The%20Grocer)&utm_medium=email&utm_campaign=2021-07-27&c=&cid=DM973229&bid=1661534201

Discount Retail Chain Lidl Germany (owned by the Schwarz Group) is campaigning for climate protection as part of the Schwarz Group's group-wide climate strategy. The retailing company officially joined the Science Based Targets Initiative in August 2020. In a second step, the Schwarz Group has now defined climate targets based on the methodology of the Science Based Targets Initiative. With its climate strategy as part of the sustainability strategy, the Schwarz Group supports the Paris Climate Agreement and makes a measurable contribution to limiting global warming to 1.5 degrees Celsius. The entire Schwarz Group will reduce its operational greenhouse gas emissions (Scope 1 and 2) by 55 percent by 2030 compared to 2019. Discounter Lidl and supermarket chain Kaufland have set themselves the goal of reducing their operational greenhouse gas emissions by 80 percent over the same period. Suppliers, who are responsible for 78 percent of product-related emissions, are encouraged by the Schwarz Group to define their own climate target according to the criteria of the Science Based Targets Initiative by 2026. Various measures to reduce, avoid or compensate for CO2 emissions in operation and in the supply chain serve to achieve these goals. See here for more: Klimaschutz: Schwarz Gruppe verkündet internationale Klimastrategie - Lidl Deutschland

Discount Retail Chains Dollar General and Dollar Tree are expanding new store concepts, and shares of both companies reached their 52-week high near the end of 2020. To put their growth in context, COVID-19 layoffs and furloughs forced consumers to focus on Value more than ever, while simultaneously consumers experienced out-of-stock issues, long lines, or felt unsafe at bigger retailers like mass or grocery stores. Dollar stores met the customer's need at a crucial time, and they continue to grow rapidly as a result. Although the Dollar channel comprises a small sliver of the overall market, capturing about 1% share of spend among food retailers and restaurants, they are seeing double-digit year over year growth. The Dollar channel as a whole is up 15% year over year in consumer spending, while some of its bigger retail counterparts like Club, Mass and Supermarket are only up 5% year over year. What's driving sales growth? Growth is being fueled by both more shoppers as well as higher spend per shopper. Early on in the pandemic, during March and April, consumer panic was setting in and there was a lot of stock-up behavior across all food retail channels. As grocery stores ran out of toilet paper and consumers rushed to look for alternatives, the Dollar channel saw a huge spike in basket size and a dip in transaction volume, indicating that consumers were doing big stock-up trips and preparing to hunker down at home. After April and May, panic started fading and consumer behavior began to stabilize. However, Dollar retained a large amount of its newfound customers; transaction volume and basket size both stabilized at around +10% year over year from June onward. Dollar was well-positioned as a Value-centric alternative to other retailers, and its new shoppers stuck around even after the wave of stock-ups ended. Which Dollar stores are winning? Dollar General is leading the pack, followed by Dollar Tree at a close second. At Dollar General, spend per panelist was up by 31% year over year during August-November. And at Dollar Tree, spend per panelist was up by 22% during the same period. However, Dollar Tree’s momentum has been bigger than Dollar General’s; there was a +12 ppt increase in Dollar Tree's growth rate compared to earlier months of the pandemic. If they maintain this momentum, Dollar Tree will be a major growth story to watch. Which customers are driving growth at Dollar Tree? While New customers (those who haven't a purchase in 6+ months or ever) comprise a fairly small portion of Dollar Tree's customer base, there was a +21% year over year increase in spend among those New customers from March-September. A bigger proportion of Dollar Tree's growth is coming from Existing customers. Low-frequency customers have increased their spend by +18% and high-frequency customers have increased their spend by +42%, which is the biggest driver of increased sales. As the chart on the right shows, over 60% of Dollar Tree's customers have a household income below $60k/year, although the chain is improving its performance with higher-income shoppers. Which competitors is Dollar Tree stealing visits from? We examined our foot traffic panel for situations in which Dollar Tree is within one mile of its competitors to see how often Dollar Tree wins the visit. For example, when head-to-head against Family Dollar, Dollar Tree wins the visit 53% of the time. When up against other dollar stores, Dollar Tree only slightly outperforms them. When head-to-head against Mass retailers like Target and Walmart, Dollar Tree only wins the visit 16% and 10% of the time, respectively. But what's important to note is the change in momentum of Dollar Tree's head-to-head win rate against Mass retailers. In the latter half of the pandemic, Dollar Tree has seen a +6ppt increase in its win rate against Target and a +9ppt increase in its win rate against Walmart. This is another indicator that dollar stores, and in particular Dollar Tree, have positioned themselves as an attractive alternative to other types of retailers. What could the future hold? While Dollar Stores enjoyed double-digit increases in transactions and basket size throughout most of the pandemic, these dipped closer to flat year over year in the months of November and December. This could be due to changing priorities during the holiday shopping months, or because there were fewer unemployed/furloughed people than during the summer months. Along with this improving trend in employment, consumers' priorities are shifting when it comes to drivers of choice. "Best Prices" remains the most common reason for choosing a given retailer, but it is declining in importance. Meanwhile, other attributes like Quality and Exclusivity are increasing in importance. It remains to be seen whether these changing priorities were just a reflection of the holiday gift shopping months, or if this trend will continue as stimulus checks get released and the economy recovers. See here for more: https://blog.sense360.com/why-are-dollar-stores-growing-so-quickly

Discount retail is doing very well today, the pandemic has not inhibited its dynamic development. "This format worked well in times of economic downturn, when it was most important for the consumer to look for savings. The value of Action's shopping cart has increased. This is a good time for us to develop", says Sławomir Nitek, CEO of the Discount variety Retail Chain Action Polska (owned by 3i group), dlahandlu.pl portal in an interview with the portal. How do you view the situation of fixed trade? What phenomena will favor it, what harm will it cause? Stationary trading, despite the restrictions resulting from the pandemic and increasing e-commerce competition, is doing well. According to a report by the Polish Council of Shopping Centres, in May 2021 the visitation rate of the centers was at 92% in May 2019, that is, before the pandemic. This confirms our belief that customers just like this form of shopping. We believe that a stationary store is not only a place to make a transaction, but an important part of social life, and even entertainment when viewing new products, giving us a sense of normality and security. Of course, we ensure that all sanitary and epidemiological standards regarding the width of the avenues, disinfectants or guards for employees are met. What technological changes can most closely remodel the way we shop in physical stores? We are currently conducting piloting in Poland related to the introduction of self-service checkouts. For now, such devices can be used in four stores. The first conclusions we have drawn from the analyses indicate that this solution is more popular in large cities. In smaller ones, customers are slowly convinced that this is a great way to speed up trading. We are open to searching for and implementing technical capabilities that strengthen customer engagement. His contact with Action's offer increasingly begins online on our website and on social media, and later transforms into regular visits to our stores. Regardless of the development of technology, the most important for us are people, great, motivated and constantly developing employees. We offer them a good working environment and many opportunities for learning and development, soft skills training, leadership training and more. We try to make sure that every employee finds an understanding and support in Action that positively influences the atmosphere. This is also confirmed by the figures. According to the "Voice of Action" survey, which involved 92% of all employees, 88% of them feel involved in the life of the company. An important number is also more than 2,000 people employed in Action in Poland. See here for more: Director of Action Polska: This is a good time for us to develop - Detal (dlahandlu.pl)

Discount Retail Chain Aldi Netherlands (German family owned) presents new fan collection for the summer. The collection, which is available in all branches of the discounter, will be released a week after Sylvie Meis presented her fashion line for the discount chain. The concept and production comes from the hat of 'Blauw Gras' (blue grass). 'Iconic fashion items' The originally German discounter brand itself lacks superlatives to describe its summer clothing range: "The collection includes iconic fashion items and accessories that will make fans shine this summer." According to the Aldi brand, the arsenal of fashion items consists of bathing suits, swimming trunks, training jackets, shorts, t-shirt dresses and 'the well-known socks'. It is already the third Aldi fan collection that has now even been expanded with a matching cooler bag for 6 cans and a picnic blanket. Good luck Just as presenter Meis cited the success of her previous fashion collection as the reason for launching a new lingerie and pajamas line, so is Aldi's argument for launching this summer collection. According to the discount store chain, the fan can choose from Aldi or Schultenbrau (Aldi's cult private label beer brand) prints and emphasizes that the unique items should not be missing in the wardrobe of the real Aldi fan. In total, the collection consists of 18 items in sizes S to XL. The indicated prices are between € 2.99 (US$3.6) and € 12.99 (US$15.6). See here for more: Discountsuper Aldi presenteert zomerse fancollectie (adformatie.nl)

Discounter Retail Chain Lidl Romania (owned by the German Schwarz Group) names Marco Giudici as its new CEO, after Frank Wagner left the company. Marco Giudici will take over the position of CEO of Lidl Romania starting with November 1, 2021, following the departure of Frank Wagner, who led the company for the last five years. Frank Wagner has led the Romanian subsidiary of Lidl since the end of 2015, and during his tenure, the discounter became the leader of local food retail in the 2020 pandemic year. Discount Lidl dethroned its sister company Kaufland in the ranking of the largest Romanian food retailers in 2020, after reporting a turnover of 12.8 billion lei (US$3.06 billion), only 27 million lei (US$6.5million) more than its sister. The discount opened 33 new stores last year recorded a spectacular 31% increase in business, while Kaufland's turnover increased by almost 1 billion lei (US$240million). Lidl, part of the Schwarz group, headquartered in Neckarsulm, is one of the companies on the food retail market in Europe. Lidl is present in 32 countries around the world and currently operates approximately 10,800 stores and more than 160 logistics centers in 29 countries worldwide. Currently, Lidl has approximately 287,000 employees, of which more than 7,500 in Romania, where the German retailer has opened over 270 stores and 5 logistics centers. See here for more: Marco Giudici, noul CEO al Lidl România, după plecare lui Frank Wagner (retail.ro)

Discount Retail Chain Lidl GB (owned by the German Schwarz Group) is aiming to radically increase the amount of fresh fruit and veg it sells in Britain as part of a major new healthy eating initiatlve. The discounter has unveiled a new healthy food commitment that will see it aim to increase sales of healthy and healthier products to at least 85 per cent of total sales, based on tonnage volume, by 2025. The move includes a target to increase fruit and veg sales by 35 per cent in the next five years. Lidl’s specialist nutrition teams have developed a bespoke nutrient profiling system (NPS) based on Public Health England’s nutrient criteria for front-of-pack traffic light labelling, focusing on fat, saturated fat, sugar and salt, which ranks all products as healthy, healthier or least healthy. As part of the commitment, its teams will assess over 200 lines each year that can be improved to meet the healthy or healthier criteria. The retailer said it will also be engaging with suppliers to ensure it boosts its portfolio of healthier products. The move comes as the discounter continues to invest in its ‘Get Fresh’ initiative, which aims to increase the range of fresh healthy products, like fresh meat, fruit and vegetables, available to customers in store to offer even more healthy choices. Stores continue to be upgraded with larger, energy-efficient chillers, it explained, which can stock more than 100 new products on shelves. Lidl said it is prioritising placing fresh, healthy products at the heart of customers' store journey, with new products located prominently at the front of store. The programme will be complete by September this year. Christian Härtnagel, chief executive at Lidl GB, said: “At Lidl, we prove that eating healthy does not need to break the bank. Our competitive low prices across all our ranges, particularly fruit and vegetables, are market leading and ensure customers can access healthy food all year round. “Our Healthy Eating Pledge is our most ambitious healthy eating target yet and is focused on helping families make healthier choices when they shop with us, without compromising on price.” Rebecca Tobi, Peas Please project manager at the Food Foundation, added: “Ahead of the National Food Strategy’s release later this week it’s fantastic to see Lidl making such strong commitments to increasing sales of healthier foods, particularly an ambitious 35 per cent increase in sales of fruit and veg. "This really places Lidl in a leadership position when it comes to retailers championing fruit and veg, and is exactly the sort of bold action that is required if we are to support the nation’s health and wellbeing, and create a food environment that actually supports healthier eating instead of making it challenging.” See here for more: Lidl GB makes major fruit and veg pledge (fruitnet.com)