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  • Macedonia: KAM is proud to have brought low prices to Macedonia

    Discount Retail Chain KAM (owned by Kamchev) has contributed to increasing the purchasing power of our citizens and we consider this to be our most humane contribution in our existence. For 22 years, KAM has persistently remained with its foreign currency, quality products for low prices. Goce revealed in an exclusive interview for InStore trade magazine how the first Macedonian hard discount broke into the market in difficult market conditions and how it managed to gain and retain customers, because even today it is in the first place as a market where consumers most often buy and prefer it. Kamchev, owner and founder of the KAM discount chain. We also talked with him about investments in the new logistics center, the success of private labels, the attitude towards employees, the upcoming changes in the retail market ... The first KAM store was opened in 1999. How did you decide on the concept of hard discount at a time when that concept was unknown in our conditions? I started my business in the private sector as a distributor of imported food products. With Interkam, I was a distributor of many large companies such as Nestlé, Dr. Oetker, Thai Union from Thailand, Balzen, Scholer and others. I became a member of an international European distributor organization. There I learned that the largest distributor can have a turnover of 600 to 700 million euros (US$720-840 million), usually for specialties and special products that large retail chains sell in small quantities and it does not pay to import them themselves. Prospects for distributors in a small country like Macedonia were very slim. Then I decided to start a retail store. In a short time, about a year, I opened the most modern store Kamfud in the center of Skopje, on an area of ​​1100m2. During one of my trips to Germany, touring various markets, I entered Alda. Since I lived in Germany for four years and traveled frequently on business, I was familiar with this supermarket chain. But then I didn’t analyze it for business, only as a customer. Ten years later, I began to discover Aldi as a concept and began to study it. I was impressed by the very low prices, limited assortment, few sellers, products displayed in cardboard boxes, and some only on pallets. A concept based on low prices and everything is subordinated to that, except for product quality and employee salaries. It was a concept that suited my character rationality, modesty, thrift and quality. In Macedonia, we will open a new logistics and administrative building of 70,000 m2 and a building of 18,000 m2 in approximately 2 months. The center is based on the concepts of the most modern logistics centers in Europe. What changes did the first Macedonian discount chain bring to the market? What was crucial to your success? Initially, the concept was not accepted. The traffic was very low. Neither customers nor suppliers accepted us. Customers were confused looking at unknown brands, products in cardboard boxes, on pallets, shops were without any decorations, with a small number of products. It was important for customers to have a large selection, for example, five types of chocolate in different packages, the beautiful appearance of the market, quality was not the most important thing for them. In a word, they are not used to saving even though we are a poor country. Unlike us, in developed countries like Germany, customers compare quality, weight and price and measure every cent. We worked at a loss for three years. We have determined that if we want to succeed, we will have to work on changing the opinions of our customers and suppliers. But it was a long process. We were persistent and did not give up on the concept. We put up a sign everywhere in the markets: Compare the quality, composition and prices of the products. Below the product was a price per 100g or 1kg, to make customers aware of how much they are actually buying at what price. We wrote about the composition and quality of the product. We directly compared the quality and prices of our products with major brands. For example, we placed next to each other Milka of 80g and 100g of chocolate of our brand Alpiko, produced in Germany or Belgium, with exactly the same composition and 30% lower price. Over time, we realized that in our conditions, we could not completely replicate the Aldi concept. A good example of how to adapt to a market with different standards, mentality and infrastructure was the BIM chain from Turkey. The owner of BIM was from Turkey, but the creator was Dieter Brandes, a former CEO in the Aldi North chain. What challenges did you face at the beginning of your business in terms of price competitiveness and negotiations with suppliers? From the beginning, we had 20% lower prices than other classic retail chains. KAM customers received much more for the same amount of money. Gradually, other markets began to adjust prices. That is why we say that we have brought low prices to Macedonia and thus contributed to increasing the purchasing power of our citizens. We see this as our most humane contribution in our existence and we are extremely proud of it. Suppliers initially did not understand our concept. They couldn’t calculate how much they were saving by working with us. In the meantime, many things have changed, but we all have a lot of work to do in the field of modernizing cooperation, in order to have a safer, faster and more economical flow of goods. What is the best decision you think has brought a turnaround? Were there any wrong decisions and how did you deal with them? The best decision was that we were persistent. We must continue to expand our market network to other markets to ensure higher supply volumes and thus lower prices. In your experience, will the consumer struggle continue through price competition or will it be played on a different card? Does KAM plan to change the current way of working and introduce some innovations? The struggle for new customers is continuous. It's competition. But offers, marketing methods, items, market size, equipment will change ... You were the first to introduce private labels. What is their percentage in the total range of KAM? How's the sale going? Own private label brands are one of the most important principles of hard discounters, but in order to become part of the range, you need to be able to supply large quantities of certain products. The price also depends on that. 30% of KAM products are private labels, with a tendency to increase to 60% in the next two years. You expanded your business to Kosovo, and in 2016 you entered the Bulgarian market. Tell us a bit more about how KAM works in these markets? Can you compare those markets with the Macedonian ones? The Macedonian market is small and does not allow an increase in turnover. If there are no large quantities of products in the procurement, it is not possible to present your own brand (which means at a lower price), which is necessary for a large discount. We estimated that a market with a population of less than 5 million inhabitants cannot ensure competitiveness and realization of the concept. Therefore, we decided to expand to neighboring countries. Two markets, Kosovo and Bulgaria, differ from those in Macedonia. The large European chains Kaufland, Lidl, Bila, before that Penny, have been present in Bulgaria for 10 years and participate in the market with more than 60%. Hard discount shopping habits already existed. The assortment differs by about 20% compared to the Macedonian one. We currently have 17 markets in Bulgaria. Next month we will open 2 more markets, and by the end of the year we plan to have 28-30 markets. When deciding which of the neighboring markets we would expand to, Bulgaria was at the top of our priorities. Maybe great European competition would be a negative factor for someone in that decision, but we thought differently. We wanted to see how competitive we are in direct competition, and with our presence in a highly developed European market, but also by learning how they work on a daily basis. Kosovo is a completely different story. There is no significant European market chain in this market. There was no discount store, after entering the DEPPO discount stores started. Now we are in that market, as in the beginning in Macedonia, we are trying to explain to customers the concept of a hard discounter and its advantages. Many products differ due to religious differences, they are sold in larger packages, but we are still connected by habits derived from living in the former common state. One of the biggest problems is the border, which is an obstacle to easier trade in goods. Investments in a new logistics center have been announced, as well as in new stores within retail centers. Can you tell us something about them? Are you planning to expand your retail network in Macedonian and other markets? In Macedonia, we will open a new logistics and administrative building of 70,000 m2 and a building of 18,000 m2 in approximately 2 months. The center is based on the concepts of the most modern logistics centers in Europe. Own distribution is the heart of every supermarket chain, especially hard discounters. This allows for a drastic reduction in storage and transportation costs. More importantly, product quality in our own warehouse and distribution are in our hands. The flow of goods is completely under our control. Freshness, deadlines, cold chain, optimal quantities, regular delivery to stores - all this we can guarantee to our customers. With our logistics center we will finally be able to function fully in accordance with all the principles of the most modern discount stores in Europe. In the analysis of the Employment Agency, salesmen are among the most sought-after occupations. Is KAM still easy to find its staff? Will you continue to provide incentives to employees as at the start of the pandemic? All countries in the region face the problem of labor shortages. This is especially true for young and highly educated staff who migrate intensively to developed European and distant countries. This will be the most serious problem for the development of countries in the region. This also applies to our company. KAM is aware that the company is its employees. We think we have above-average salaries. We respect all legal provisions, and often exceed them. For example, in KAM, instead of the legal 50%, a bonus of 75% is paid for working on Sundays. Saturday is considered a day off and is compensated by an increased amount of 35%. We will soon present the concept of two days off for each employee, something that is extremely difficult to fully implement in our industry. Work-life balance is a topic we constantly pay attention to and make improvements. A satisfied and loyal employee is not only created with a salary. Modern and safe working conditions and tools, fast and thorough training, opportunity for personal development, flexibility in terms of private problems, respect and transparent rules - all this creates a long-term team that sees the company as its second home and security. KAM's revenues in 2019 amount to EUR 149 million - almost EUR 20 million more than in 2018, and the profit is 1.5 million higher than in 2018. What financial results does KAM record in 2020 compared to 2019? KAM's revenues in 2020 amount to 170 million euros (US$204 million). The difference in 2020 in relation to the second-placed chain amounts to EUR 73 million (US$88 million), ie its revenues amount to 57% of KAM's revenues. KAM is the number 1 market in the market. There are currently 74 markets across Macedonia. The German trade magazine Lebensmittel Zeitung called you a “Macedonian Aldi” in its analysis of Lidl’s entry into Macedonia. Do you think Lidl is your direct competitor? What, in your opinion, will change the announced entry of this chain into our country? The arrival of Lidl will change the market situation. After all, this happened every time a new chain appeared in our market. Domestic companies are quickly learning and starting to apply new methods of work. The market is modernizing, habits are changing, the dynamics of overall development are increasing, prices are falling, and customers are more satisfied. The share of hard discounters will increase at the expense of classic markets. Lidl is no longer a classic hard discount, and our concepts have additional differences. That is why we do not consider it the most direct competition for KAM. Of course, the competition will increase and will take part of our turnover, but our customers will also be convinced of the competitiveness of KAM. We expect small differences in prices compared to our offer, and our customers will also be convinced that their KAM now offers them most of the convenience of a bargain. Our market cannot be compared to the market situation in Serbia or Croatia when Lidl entered their market. Hard discounters are currently present in Macedonia. The concept of low prices and high quality is accepted and will not contribute to such big changes and turbulence. Is there room for foreign chains, when local retail chains are doing very well in this small market? Of course, famous foreign chains will also come. They need a new market, because in their countries it is completely covered and saturated and they no longer have room to expand. A big problem is customs, sanitary and other controls that make it difficult to move goods. In your experience, how will the Macedonian retail scene develop, are fragmentations or enlargements expected? Do you think the discounters will still be on the throne? There will be a consolidation of the retail network in the market. A large part of small markets will disappear, and a part of medium-sized markets will have the same fate. It is a law of concentration, which has been confirmed in all developed markets. Instead of the legal 50%, KAM pays 75% for work on Sundays. Saturday is considered a day off and is compensated by an increased amount of 35%. We will soon present the concept of two days off for each employee. See here for more: https://www.instore.hr/intervju/kam-ponosni-smo-sto-smo-donijeli-niske-cijene-u-makedoniju-19822.html

  • Germany: NORMA continues its expansion course with state-of-the-art cooling warehouse

    Discount Retail Chain NORMA (family owned) continues to invest in its logistics infrastructure. In the Saxon NORMA regional office in Rossau, a completely new refrigerated logistics centre is therefore now being built. The expansion of logistics capacity in Rossau became necessary due to the dynamic growth of the discounter. The ground-breaking ceremony of the new refrigerated logistics center has been set. With this investment, NORMA underlines its expansion strategy on the one hand and its commitment to the Saxon location on the other. Since the opening of the regional office there on November 1, 1993, the number of stores supplied from there has tripled. In the presence of the Prime Minister of Saxony, Michael Kretschmer, and the NORMA Chairman of the Board, Gerd Köber, the construction company was ceremonially launched with a groundbreaking ceremony. Other prominent guests were Veronika Bellmann (member of the Bundestag), Iris Firmenich (member of the Saxon State Parliament) and Matthias Damm (District Administrator of Central Saxony). Sustainable, energy-saving and economically efficient As in all NORMA regional offices and their associated logistics centers, only state-of-the-art technology is used in Rossau. At the ceremony, general manager Matthias Lehmann explained in detail to the guests from politics and the media that the entire refrigeration technology for the total of 4,610 m² usable area is operated exclusively with the natural, environmentally friendly refrigerant CO2. All building components in the new NORMA deep-freeze and cooling distribution center with its four state-of-the-art docking stations will also be sustainable, energy-saving and economically efficient. The roof area is equipped with an efficient PV system to cover a large part of the electricity consumption with solar energy. For the construction, a half-year construction period is planned. Thanks to the new building, the Rossau office can supply more than 150 stores and is therefore ideally positioned for further expansion in Saxony. With the commissioning of the new refrigerated logistics centre, around 20 additional jobs will be created at the Rossau site. See here for more: Fruchtportal.de - Nachrichten zum Thema Fruchthandel, Obst und Gemuese für die Fruchtbranche

  • Colombia: What is the secret behind D1's success and growth?

    Discount Retail Chain D1 (owned by KOBA) turns 11 years old and manages to enter the list of the 10 companies with the highest sales in the country, with $ 7.3 billion (US$150 million). Mrs. Tatiana Mejía, its president in charge, explains the formula for success. She believes that working around an attractive offering, efficient operation, and low costs has resulted in consumer loyalty. What does it mean for D1 to be in the "top" 10 of the largest companies? The first thing we evaluate is the consistency and soundness of the business model. When we started with a hard discount structure, we began to break the paradigms and what we did was work around the corporate values ​​that make us different. Customer orientation has been a fundamental pillar to understand what they need. 2020 was a challenging and challenging year in all aspects but it was one of consolidation of that value proposition and that is what we managed to capitalize on. It is a great satisfaction for us as managers, but also for all the collaborators of the organization, because this has been seeing a company grow where you have laid the bricks. Obviously, the important thing is not to arrive, the focus is now to see what to do to continue positioning ourselves. What are the expansion plans? We have around 1,770 stores and more than 15,000 employees, with a very young talent, adaptable to changes. In 2019 we had an opening of more than 390 stores in the country, in 2020 we did have a delay due to the pandemic but we are satisfied with more than 330 additional stores. We are in 371 municipalities. For this year we have a goal of between 350 and 380 more stores. Is an acquisition possible? For Tiendas D1 it is not on the table and it is not a path at this time. We have an organic growth plan. How much do they grow in sales thanks to the expansion and by existing stores? The expansion contributed 26% and on the other side is the 'like for like' growth (same stores) that has been sustained. Most of our stores, if not all, reach double digit levels. Where is the value added? There are two big variables. One is the development of the value proposition. Before the pandemic, we structured a more complete basket from the commercial area and increased the number of products, which supported us significantly because we saw that the consumption habit changed. Customers preferred to go to stores only once. What happened was that the frequency was reduced but the ticket was increased. And what we managed to capitalize on is that the number of units per ticket grew significantly. But that did not happen only because of the pandemic, but we generated product testing, we developed our brand umbrellas and the consumer began to generate loyalty towards D1. According to Kantar Worldpanel studies for 2020 we already have 10 leading own private label brands in homes. Is your own private label brand relevant? Understanding the hard discount, we speak that we have a very high inventory turnover, a very low cost structure and a search for efficiency. Due to these costs, our own privare label brands can be cheaper with a relevant quality and we win over the consumer to generate that loyalty. That has been the way to grow in a sustainable and guaranteed way this year. Do they respond in this way to the reality of greater poverty and lower spending capacity? From a consumer point of view, we have been very agile in adapting. We increase the references to complement the proposal and align with its disbursement capacity. In the face of quarantines and the pandemic, we created the website, the application and the addresses. We understand that in this basic family basket that is having a significant inflationary effect, we have to look for alternatives, for example, with presentations more in line with what you are willing to spend or with what can generate greater savings. And how do they get recognition at high levels as well? Since we started, the entire pyramid has been contemplated. In fact, today we have a 99% top of mind of consumers and it goes from top to bottom. That is why our proposal includes democratization. The consequence of this is that we are recognized as a well-known brand, and we are recognized by Colombians. There is another concept that we applied in the pandemic, which was to offer premium products and the introduction of concepts such as the healthy line. That made us closer. Will the "hard discount" be seen to outperform the big chains? In Germany you can see that. The discount completely revolutionized shopping habits. I would believe, and it is a personal opinion, that if capitalized, this business model has all the potential to be a market leader. Is it time to expand to other countries? At this time we must solidify leadership, strengthen the structure of our stores. I think it takes a couple of years to explore an international vision. The situation, the pandemic, the unemployment, makes us concentrate on the current business and show that really all these figures that show us solidity and sustainable growth are a reality for a long time to come. See here for more: https://www.mallyretail.com/actualidad/mall-y-retail-boletin-378-noticia-5

  • China: Hotmaxx grows fast

    Too thrifty to shop for pricy food? A new discount grocery retail chain began popping up all over Beijing over just the past few months after opening more than 50 stores in the Shanghai region, and when it comes to deals on groceries, they definitely have you covered. It’s called HotMaxx, and there are ten locations in greater Beijing, and luckily a few of them are settled into the central parts of the city, including Galaxy Soho, Wangjing Soho, and a small convenience-store version in Sanlitun Soho. To see what all the fuss is about, we went to check out the Chaowai Soho for ourselves. The concept is simple enough the brand is built on the idea that for many Beijingers, grocery bills can take up a large chunk of their household expenses. When shopping for necessities like rice, water and bread, many consumers simply feel they are running out of coupons for discounts. The solution that HotMaxx has offered takes aim at the fact that a large portion of foods are lost or dumped annually in China. According to a report by the South China Morning Post, about 18 billion kilograms of food is wasted every year in China’s urban catering industry. To counter this, HottMaxx specializes in selling near-expired items at a super discounted price is on a mission to solve those problems. For example, on our visit, we peeped deals like a bottle of Hoopos sparkling pear cider for only RMB 6.5 (US$1) and a bag of Indocafe Coffee mix for RMB 13.1 (US$2)! A bag of multi-flavored peanuts costs as low as RMB 2.9 (US$0.45). If you are someone who likes a fine twist of wine flavor to your beef bourguignon, you’ve definitely come to the right place. The store offers a wide selection of different kinds of dry red wine at great discounts. The luxurious Chateau Bordeaux wine costs a mere 33.8 RMB (US$5.2), while the already dirt-cheap Yellow Tail Merlot has been further discounted down to 15.5 RMB (US$2.4), about one-fourth of its original price. That’s all pretty amazing when you consider that wine doesn’t even expire! Even for those lazy souls who don’t want to deal with the hassle of cooking, the store provides instant snacks such as 螺蛳粉 Luósī fěn snail noodles, dry noodles, ready-to-eat stir-fry at affordable prices. These snacks are all great late-night pick-ups for people on their way home from work. Oh, and don’t forget about those classic chips that might bring back your childhood memories. What’s better than chewing on one of your favorite Pringle’s tomato-flavor potato chips that you nabbed for just RMB 7.8 (US$1.2)? While the store has already attracted devoted fans who get overly excited by the thrill of the hunt for the best deal, many shoppers have health concerns about the expiration dates, worrying if it is safe to eat those near-expired foods. For that, upon checking out, the sales clerk double-checks the expiration date of the products, making sure that customers are not purchasing anything that’s not fresh. In fact, most of the things the store is selling still have more than 3 months before they fully expired. Ultimately, it is consumers’ call on what they decide on what to purchase for themselves with the expiration date serving as a mere guiding mechanism. In other words, whether or not near-expired food is worth the discount is entirely up to you! Meanwhile, happy hunting, and may you save many a penny on your next grocery outing! Did You Know About This Discount Grocery Store? | jingkids international | Beijing | June 1st, 2021 | beijing-kids.com

  • Norway: Europris shattered expectations - best first quarter ever

    Discount Retail Chain Europris (Oslo stock listed) had to close ten percent of its stores in the first quarter. It did not stop them from delivering the best start to the year ever. The low-price chain Europris has had strong sales growth and delivered strong results through the corona pandemic. The company presented results for the first quarter of 2021. It was expected in advance that Europris would deliver a turnover of 1507 million kroner. Profit before tax was expected to be NOK 36 million. The result shows a turnover of 1718 million kroner, and a profit before tax of 104 million kroner, according to a stock exchange announcement on Thursday morning. In the same period in 2020, Europris had a turnover of NOK 1383 million, and a profit before tax of NOK 2 million. "We are very pleased to have delivered this result, especially in a period with several closed stores. The location of Easter, of course, has something to say when we compare speed. We have had a sales growth of 5.5 percent, at the same time as several of the stores have been closed", says CEO Espen Eldal to DN. The fact that ten percent of Europris' stores were closed due to infection control measures in the first quarter was not enough to stop them from delivering the best ever first quarter. Espedal points out a cold winter that has led to a high sale of seasonal equipment, the timing of Easter and the corona effect of people being more at home as important reasons. Europris, result per 1st quarter (in MNOK / US$) 2021 2020 Change Turnover 1708/200 1382/160 +23.6% Operating profit (ebit) 151/17.5 44/5.1 +243.2% Result before taxes 104/12 2/0.23 +5100% Europris, like several other grocery retailers, has experienced strong growth during the corona pandemic. See here for more: https://www.dn.no/handel/europris/handel/fredrikstad/europris-knuste-forventningene-beste-forste-kvartal-noensinne/2-1-1002226

  • Norway: Europris invests heavily in online toys

    Discount Retail Chain Europris puts half a billion kroner (US$58million) on the table and buys two thirds of Norway's largest online store for toys. The Norwegian discount chain Europris buys 67 percent of Lekekassen, Norway's largest online store for toys, for NOK 501 million (US$58 Million). The acquisition will be financed with cash. Europris has a pre-emptive right to purchase the remaining shares. "We are very enthusiastic about the acquisition of Norway's largest online toy store and its strong e-commerce organization", says top manager of Europris, Espen Eldal, in a statement. Turnover for over half a billion. The toy box was established in 1945 in Grimstad by the Skalleberg family, and consisted exclusively of physical store sales until 2013, when the online store lekekassen.no was launched. Last year, the company had a turnover of NOK 545 million (US$63 Million) and an operating profit before depreciation (ebitda) of NOK 94 million (US$ 11million). "We have been proud retailers for generations, but we recently started looking for an industrial partner who can support further development and expansion of our family business", says third generation top manager Andreas Skalleberg in Lekekassen in the report. He remains top manager of the toy company, and will continue to own 33 percent. Eldal becomes chairman of the board. The toy box has also entered the Swedish market, with the brand toyspace.se, where turnover reached around NOK 100 million (US$11.6 million) last year. Toys represent a clear growth category for Europris, and Lekekassen's products will contribute to higher growth and a better customer experience in our stores. In addition, we see the possibility of further synergies through joint purchases of goods and services, says Europris CEO Eldal. Europris is listed on the Oslo Stock Exchange with a market value of NOK 8.6 billion (US$1 billion). The company has seen a sharp rise in the stock market over the past year. Since the stock bottomed out after the corona crash last spring, it has risen over 100 percent. Last year, the share rose around 56 percent. See here for more: https://www.dn.no/marked/europris/lekekassen/espen-eldal/europris-satser-stort-pa-leketoy-pa-nett/2-1-1032732

  • Australia: ALDI becomes member of Slave-Free Alliance and publishes Modern Slavery Statement

    Discount Retail Chain ALDI Australia (German family owned) has published its annual Modern Slavery Statement outlining actions to mitigate modern slavery during a challenging year for the supply chain due to the COVID-19 pandemic. ALDI has become the first Australian member of Slave-Free Alliance and together the organisations will conduct a Human Rights Risk Assessment and roll out Modern Slavery Awareness Training for ALDI employees and business partners. The Modern Slavery Awareness Training Program will ensure all employees with sourcing responsibilities, as well as merchandise suppliers, are equipped with the skills they need to understand risks, identify the signs of modern slavery, and take action to address them. Slave-Free Alliance, part of the global anti-slavery charity Hope for Justice, is a social enterprise that supports businesses to protect their supply chains and operations from modern slavery. Lynnette Kay, Director at Slave-Free Alliance in Australia, said it is critical to take a holistic approach, and work closely with all parties in a supply chain to properly mitigate the risks of modern slavery. “We are delighted that ALDI Australia is leading the way in Australia’s fight against modern slavery, and we are looking forward to working together to achieve our shared goal; a slave-free supply chain. “As an international company with suppliers in Australia and across the globe it’s wonderful to see ALDI putting in place robust programs to prevent worker exploitation. We hope that other businesses will follow its example so that we can tackle modern slavery collectively,” said Ms Kay. ALDI’s Human Rights Risk Assessment will look into important local supply chains such as fresh produce, fresh meat and goods not for resale. Daniel Baker, Corporate Responsibility Director at ALDI Australia, says the partnership with Slave-Free Alliance will support ALDI’s proactive approach to prevent modern slavery and work towards ensuring fair and safe working conditions. “Modern slavery is a complex issue requiring thorough and progressive action. We understand the significant impact we can have on intercepting the exploitation of workers within our supply chain and our partnership with Slave-Free Alliance will help to ensure modern slavery continues to be identified and addressed,” said Mr Baker. See here for more: https://www.aldiunpacked.com.au/storage/2021/06/Modern-Slavery-Statement-2020.pdf

  • Netherlands: Action opens webshop, but doesn't sell the usual stuff there

    Discount Retail Chain Action (owned by 3i Group) has started a pilot with a webshop in the Netherlands, a spokesperson confirms after reporting by trade website RetailTrends. The chain offers five to seven products in its online store that are purchased especially for this purpose. There are also no plans to sell the items for sale in the store online. The trial is now in its third week and will run until the end of this year. Based on the results, the retail chain determines whether it wants to continue with the online formula. Action held off for a long time, because the small margins make it difficult to sell products at low prices and also deliver to home. But due to successful click-and-collect experiments during the corona crisis, where customers could order products online and pick them up in store, the discounter has reconsidered its online plans. And from that came the idea to start a webshop with products that you cannot find in the store. In any case, the products are delivered to your home for an extra amount of €3.99 (US$4.8). At the moment, however, there are temporary products for sale from the store, but only in large volumes. This is because not all ordered products have arrived yet, says the spokesperson. It is not the intention that the entire store range will be sold online, not even in the longer term. CEO Sander van der Laan said earlier in conversation with NU.nl that for Action it is "until now not necessary to sell stuff online". "It is also damn difficult to get a product that costs €1.50 (US$1.8) excluding VAT at the customer's home without loss."

  • UK: Lidl hits 860 stores milestone and remains on track to reach 1,000 by end of 2023

    Discount Retail Chain Lidl UK (owned by the German Schwarz Group) has reached the milestone of 860 stores in Great Britain and remains on track to have 1,000 stores in their portfolio by the end of 2023. This forms part of Lidl’s £1.3bn (US$1.8 billion) investment plans for 2021 and 2022, which includes opening 50 new stores this year, creating 2,000 new jobs. This comes as the discounter has published its annual list of desired locations across the country where it is interested in acquiring sites for potential store developments. Of particular focus this year includes town centre, edge of centre, retail park and metropolitan locations. The list of site requirements comes as Lidl’s store expansion continues at pace, despite the ongoing restrictions caused by the pandemic. So far this year Lidl has opened more than 20 new stores across the country. The list of desirable locations for new stores is aimed at landowners and freeholders with suitable sites who are interested in exploring opportunities with Lidl. Christian Härtnagel, CEO at Lidl GB said: “We are calling on developers and landlords up and down the country to help find potential sites for us to build Lidl stores, which demonstrates the continued ambition we have to further expand our store portfolio across the nation. Despite the challenges of the past year, we still managed to meet our ambitious target of opening, on average, one new store per week across Great Britain. “We are looking forward to opening more stores throughout the country and welcoming new colleagues in the coming months and years, so that more communities can access high quality food at the lowest prices on the market.” All stores will include Lidl’s famous Bakery, offering freshly baked bread, biscuits and pastries, created by the discounter’s in-store bakers throughout the day. In addition to offering quality food at great value, all new Lidl stores will feature solar panels on the exterior to provide renewable energy for the site, in addition to the installation of electric vehicle charging points. Each new store will also become part of Lidl’s food redistribution programme Feed It Back, which sees surplus food donated to those within local communities that need it the most, via food banks or partner charities. About Lidl UK Since establishing itself in Great Britain in 1994, Lidl has experienced continuous growth and today has over 25,000 employees, over 860 stores and 13 distribution centres in England, Scotland and Wales. As part of the Schwarz retail group, Lidl is one of Europe’s leading organisations in the food retail industry. With a presence in 32 countries around the world, the supermarket, which has more than 310,000 employees globally, currently operates approximately 11,200 stores and more than 200 warehouses and distribution centres. The family supermarket takes pride in providing its customers with the highest quality products at the lowest possible prices throughout Great Britain, from Kirkwall to the Isle of Wight. Social responsibility and sustainability are at the core of the company's daily operations, with the company placing a strong emphasis on its responsibility for people, society and the environment. Lidl GB is passionate about working with British producers and sources two thirds of its products from British suppliers. The Schwarz Group, which operates worldwide as a retail group, generated a turnover of €113.3 billion (US$136 billion) in the financial year 2019. See here for more: https://corporate.lidl.co.uk/media-centre/pressreleases/2021/2021-site-requirements-brochure?mkt_tok=ODk3LU1CQy0yMDcAAAF94grLKyZ06YNFMo2Z_vEp9Dr6pd1ZpJRRxBp2OqPiDlyBR5GqZEgOQ7VeIEKNlWXNORts4W1f-Tx7zYwqZOS7x6-R4HZ_JLlwIDw7GinpcrI

  • Denmark: Lidl helps its suppliers to get sustainable

    A strong focus on Danish manufacturers and a willingness to in certain cases pay a little more than some of the competitors provides high quality and flexibility for discount retail chain Lidl Denmark (owned by the German Schwarz Group). This is what the chain's purchasing director says, who hopes to help push for a change so that all Danish greenhouses can be heated with green energy. Purchasing Director at Lidl Denmark Rasmus Pape is naturally pleased that Lidl is highlighted by several Danish food producers as a frontrunner in the climate area among the large retail chains. A number of Danish food producers of fruit and vegetables are frustrated by the experience that the country's large retail groups talk loud and clear about climate and sustainability abroad, but largely only focus on price when they buy goods for their shelves. For a profession like the few remaining Danish tomato farmers, the problem is a key challenge for both being able to run a financially sustainable business from day to day while having to invest in a constantly greener production. Something that will ultimately benefit both the climate and the individual Danish tomato grower, who is expected to look into a future with high taxes on CO2 emissions, while especially Dutch, Spanish and Moroccan tomatoes are knocking on the door. However, several of the food producers the Danish newspaper Berlingske has spoken to point to the German discount retail giant Lidl as being by far the most serious in the climate field. As a chain where great demands are made on the manufacturers and things are checked up. And as a place where it is to a greater extent than with most others possible to talk about things, if you as a Danish producer need to get a little more for your goods to make things stick together. According to Rasmus Pape, Purchasing Director at Lidl Denmark, Lidl's side is very much about running a business with "common sense". He says that Lidl gets both great quality and flexibility again from its suppliers by focusing a lot on buying Danish goods. "It means a lot to us that we can call and say, 'We have to have this tomorrow.' Or the day after tomorrow. Or you can come NOW, because your tomatoes have sold mega well this week. We can not do it in the same way at all if we get them from Spain, and they are four days in the making, "says Rasmus Pape and elaborates: “So there are many different parameters that come into play when we shop, also in addition to price, environment and climate. The quality is simply better. I may pay a little extra for that, but it gives us satisfied customers and suppliers in the end. " Lidl Denmark currently has 13 different tomatoes in its range. The eight of them are Danish, while the remaining five come primarily from the Netherlands. During the winter months, Spain plays a major role. At the same time, the director states that Lidl's shame is also tough on prices, as the margins in the retail trade are relatively small. “We are aware of what things cost at all levels. We know what it costs to drive a truck from Spain to Denmark or from Nørre Snede to Køge, where we have our warehouse. We know what the packaging costs. We know pretty much what it costs to grow a tomato. But we also know what it costs to invest, and we know what it takes for a supplier to have some more security. For both the quality and the flexibility," says Rasmus Pape. Eight times Denmark The proportion of Danish tomatoes at Lidl varies from season to season. Lidl Denmark currently has 13 tomatoes in its range. Of these, three are organic and five are conventional from Denmark. The last five varieties are currently primarily from the Netherlands. »It is somewhat seasonal in fruit and vegetables, where, for example, Spain covers a different period than the Danish tomatoes. I have no problem taking goods from Spain, where they are just as motivated and passionate about their tomatoes as the Danish growers. But our focus is, among other things, on the fact that we can be more involved in product development at Danish growers, and that the products are not that long in the making. There is significantly higher flexibility, which means a lot to us," says Rasmus Pape. See here for more: https://www.berlingske.dk/berlingske-redder-tomaten/lidl-direktoer-taenk-hvis-vi-kunne-vaere-med-til-at-faa

  • France: B&M discount store replaces Babou

    The French discount retail Babou brand is now replaced by discount variety retail chain B&M, an English brand specializing in the distribution of home and personal equipment products at discount prices. Located in the commercial area of ​​Coignières, the store opened its doors on Wednesday 23 June. An area of ​​2,890 m² Throughout the 2,890 m², you can find food products (except fresh), textiles, decorative objects, furniture, toys… “It's a big, very nice, big and clean“ bazaar ”. », Testifies Chloé, who came especially for the opening. “Right from the start, we have a corridor of good deals, renewed every four weeks and then moving forward, a seasonal space. Then the visitor can find whatever he needs. We even have something new, a section of solidarity concept with a few products where the dates have passed, ”explains Stéphane Saron, director of the B&M network. The brand has stores in England, Scotland, Wales, Northern Ireland and France. “Following the takeover of the Babou group, B&M continues its transformation in France. We are planning two store openings per week until the beginning of October,” reveals the director of the B&M chain. “We transformed the store in nine days. We worked day and night. It's a performance! Our customers were waiting for it", testify Séverine and Jérôme Gullung, the managers who joined the Babou group in 2010. "Affordable prices" In the aisles, the baskets are filling up. "I think it's good value for the money. For example, I bought a 750 ml dish soap for 1.49 euro (US$1.8). Wipes for children at 0.99 € (US$1.2) and juices for my son at 2.99 € (US$3.6)”, details Sarah, from Maurepas. A little further on, a customer falls for a wicker basket at € 3 (US$3.6). In the furniture department, Aurélie is looking at a desk displayed at € 39.99 (US$48). "These are affordable prices", testifies this resident of Coignières. “Labels and prices are displayed on the shelves. We cultivate this concept of "pricing", there is a real dramatization. This is very important for the customer journey ", explains the network manager. A "100% winning" game for the opening The B&M store in Coignières is located in a commercial area with many furniture, decoration and household appliances brands. However, the brand is not afraid of competition. “B&M brings together around thirty own brands, with quality products. They are not the same suppliers. Unlike other brands, we have the particularity of offering textiles for women, men and children,” emphasizes Stéphane Saron. For the opening, B&M is offering a "100% winning" game to its visitors for four days. A free raffle is offered to win prizes instantly. Three of the participants will also be drawn to win three prizes. See here for more: https://actu-fr.cdn.ampproject.org/c/s/actu.fr/ile-de-france/coignieres_78168/yvelines-ouverture-du-magasin-b-amp-m-a-coignieres-remplacant-de-babou_42894156.html/amp

  • Germany: No more cheap meat at Aldi

    Discount Retail Chain (family owned) Aldi Nord and Süd announce as the first food retailer to only offer meat from fresh air and organic farming from husbandry levels 3 and 4 by 2030. Aldi Nord and Süd want to forego all cheap meat at level 1 by 2025. The largest discounter in Germany announced this to journalists. By 2030, the food retailer intends to consistently switch its fresh meat range to the higher animal welfare forms 3 and 4. This means that Aldi is so far the first large grocer - and above all the only discounter to switch completely to fresh meat from outdoor and organic farming, which corresponds to farming methods 3 and 4. The livestock groups beef, pork, chicken and turkey are said to be affected, with the exception of (international) specialties and frozen products. This year, 15 percent of fresh meat sales should come from husbandry forms 3 and 4, up to now it has been around twelve percent. By 2026, the share of sales from this segment should be increased to 33 percent. Aldi is not yet able to predict whether the end consumer prices will become more expensive as a result, as the market is very complex and subject to many fluctuations. Therefore, no price forecast can currently be given until 2025 and 2030. It is to be expected, however, that it will be “a few cents more” than the cheap meat of level 1. "We want animal welfare to be affordable for everyone and that every customer can afford good meat that is produced as sustainably as possible," said Lars Klein, Head of Purchasing at Aldi Süd on Friday. Aldi believes that the customer is ready for change and refers to a study by the Bund Ökologische Lebensmittelwirtschaft (BÖLW), according to which Germans opted for organic meat much more often in 2020 than in the previous year. Aldi is already the largest organic retailer in Germany. "We are also taking a considerable economic risk," says Klein, but Aldi is taking the step from "Conviction to do the right thing." Together with politicians, manufacturers and farmers, Aldi wants to initiate a change in the entire value chain towards more animal welfare . The move comes only a few months after the ongoing farmer protests, which are demonstrating for better conditions on the part of politicians, producers and retailers. In some cases, the farmers even blocked the central warehouses of the discounters Lidl and Aldi. However, as it is said in the press conference, Aldi had been preparing this project for a long time, "long before the farmers' protests". German Animal Welfare Association welcomes Aldi's step The President of the German Animal Welfare Association, Thomas Schröder, welcomes Aldi's change of attitude: “From our point of view, the currently applicable legal basis for keeping animals in agriculture is not sufficient to ensure animal welfare in the stables. It is therefore only logical to forego meat from conventional husbandry with husbandry level 1. "Aldi's announcement also brings planning security for farmers who are now facing investments in the construction of stables and want to create more animal welfare, according to Schröder. He also sees Aldi as obliged to support higher standards with corresponding contracts and prices. An Aldi spokesman assured in the press conference: "For higher performance and more sustainably produced products, farmers with us naturally also receive more money." Aldi does not carry out this change of attitude on the farmers' backs, according to the spokesman. The move is a signal, also to other competitors in the food retail sector. As Schröder also comments, it will now be crucial that other retail companies follow Aldi’s step “and that politicians do everything to actively support the transformation of animal husbandry.” Because only around 25 percent of all pork produced in Germany ends up in the retail trade. The rest will be exported. Many farmers are dependent on selling their meat abroad at dumping prices. The conditions of competition are usually even tougher than in retail. Around 90 percent of German farmers currently produce in the conventional way, i.e. without organic standards or access to fresh air for the animals. Ultimately, however, the responsibility also rests with consumers to choose products with higher animal welfare standards. See here for more: https://www.businessinsider.de/wirtschaft/handel/kein-billigfleisch-mehr-bei-aldi-ab-2030-soll-es-beim-discounter-nur-noch-fleisch-aus-bio-und-frischlufthaltung-geben/?

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