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- UK: Pepco Group posts increase in first half sales and profit
Pepco Group, the owner of the Discount Variety and Textile Retail Chains Pepco and Dealz brands in Europe and Poundland in the UK, saw its revenue climb by 9% at constant currency in the first half of its financial year. In the six months to 31 March, trading store like-for-like sales growth was 5%, although group like-for-like sales declined by 2.1% due to around 15% of trading weeks being lost due to Covid-19 related store closures across the group. Pepco Group said all its stores are now trading, although some still face restrictions with regard to customer footfall. Underlying EBITDA increased by 16.8% to €324 million (US$ 387 million)while underlying pre-tax profit climbed by 47.2% to £112 million (US$ 156 million). During the period, the group continued its store expansion programme with 129 net new Pepco stores and 27 new Dealz shops. In addition, the Poundland store portfolio was boosted by the acquisition of 80 Fultons Frozen Foods stores in the period. Looking ahead, Andy Bond, chief executive of Pepco Group, said: “We anticipate that the environment in which we operate will remain changeable and challenging in the short term but over time as consumer behaviour returns to more normal patterns, as any Covid related restrictions that impact our customers confidence to shop are further relaxed. “However, as these results show, we have a clear and winning customer offer, a long-term growth strategy delivering stores in existing and exciting new markets, as well as a number of key initiatives to drive our sales and margin. As such, we remain confident about our prospects for continued profitable growth in the balance of the financial year and beyond.” See here for more: https://www.theretailbulletin.com/general-merchandise/pepco-group-posts-increase-in-first-half-sales-and-profit-24-06-2021/
- Poland: HalfPrice plans large-scale expansion
The preparation of the first discount variety retail chain HalfPrice (owned by the CCC Group) stores required the involvement of the entire team and took us almost a year. Everything had to be created from scratch from the idea, through adapting the space, to stocking up large stores, etc. Please remember that this year was needed to prepare the opening of as many as 60 stores. The pace is therefore express, says Karol Semik, Expansion Director, in an interview with Retailnet. Where did the idea for the HalfPrice brand come from? The off-price sales model came to us from the United States and Western Europe, where it is very popular. After the first openings of our stores, we can see that they delight consumers and encourage them to shop. We can see that this concept has been very well received in Poland, that is why we are planning its extensive expansion in the entire region of Central and Eastern Europe. Before we move on to the plans and new openings, please tell us about the stores that are already in operation? In one and a half months, we launched a total of 14 stores. Today, customers can shop in two stores under the HalfPrice brand in Warsaw, in the flagship newly opened in Wars Sawa Junior department store at Marszałkowska Street and in Galeria Północna. In addition, there are showrooms in Wrocław in Lower Silesia, Galaxy in Szczecin, M1 in Kraków, Galeria Korona in Kielce, Solaris in Opole, Galeria Platan in Zabrze, Galeria Warmińska in Olsztyn, Galeria Sarni Stok in Bielsko-Biała, Galeria Łódzka, Gemini Park in Tychy, Retail Park in Polkowice and Pogoria in Dąbrowa Górnicza. All stores operate under the sanitary regime. And the wider expansion is ...? We are planning a wide-ranging expansion. Apart from Poland, other regions of Central Europe are also at stake. The brand is interesting and we are convinced that it will also be well received in other markets. We will be present in the Czech Republic, Austria and Hungary by the end of the year. 60 stores only in Poland alone are ambitious plans? 60 stores is just the beginning and the plan is to be completed by the end of this year. Our plans are ambitious, but we believe that we will manage to implement them - incl. thanks to cooperation with landlords who support us in the process of starting a new network. The format is indeed impressive in some cases the stores even have two floors? It also makes us different. We plan to open stores with an area from 1 thousand up to 2.5 thousand sqm We choose attractive locations. HalfPrice stores are characterized by a clear and transparent layout that favors satisfactory shopping. They are very similar to TK Maxx? The company mentioned by you actually operates in the same segment as HalfPrice. However, we focus on the uniqueness of our project and our clients. We are building a coherent business plan, we have presented a new concept and we want consumers to feel good about it and be satisfied with their purchases from us. The concept made its debut just after the lifting of the next lockdown. How was it received? Can we talk about the footfall results? I can confirm that the concept is well received. One and a half months after the opening, we were visited by over 500,000. people! It is worth mentioning that we work in a strict sanitary regime, which means that a limited number of people can stay in the salon at a time. Therefore, we are all the more pleased with this result. Do the landlords like this format too? Definitely. We receive congratulations from landlords for creating such an original and unique concept from scratch in such a short time. How long did the preparations for launching the brand take? The preparation of the first stores required the involvement of the entire team and took us almost a year. Everything had to be created from scratch - from the idea, through adapting the space, to stocking up large stores, etc. Please remember that this year was needed to prepare the opening of as many as 60 stores. So the pace is express. How did these negotiations go? Is it easy to introduce a new brand in such a difficult time for trading? The talks were demanding, but invariably carried out with respect for the interests of both parties. At this difficult time, when galleries are badly damaged after the pandemic period, we came up with a new concept. We showed that we see development opportunities and we are open to cooperation. We want to support and build retail trade. We value our current relations with galleries. The relationships built by the CCC Group over the years have now paid off. Landlords trusted us because they knew that if we do something, it will be done right. In addition, HalfPrice is a modern concept that certainly makes the offer of shopping malls more attractive. All sides of the project benefit from the trafficked by the brand. HalfPrice is a brand created for these times? This is an idea for those times, but also the introduction of another segment in the CCC Group. This is the beginning of a new chapter for us. We have a creative Chairman of the Supervisory Board, Dariusz Miłek, who created this brand, and we, together with the entire team of the CCC Group, can implement a new, interesting idea. It motivates us to continue our work. In HalfPrice stores, customers will find clothing, footwear, toys, accessories and cosmetics, as well as decorations and home accessories. Is such a wide offer an idea for a stock? The offprice model is about uniqueness, a variety of offers that changes every day, this also applies to the brand portfolio. Thanks to the scale of the undertaking, which is the opening of several dozen HalfPrice stores, customers can count on a very diverse offer, it will be supplemented several times a week. Of course, we want to use synergies within our Group, but the products from these stores will not dominate the offer, and accounted for approx. 5-10% of the range. See here for more: https://retailnet.pl/2021/06/22/87863-wywiad-karol-semik-halfprice-planujemy-szeroko-zakrojona-ekspansje/
- Denmark: Discount chain beats expensive competitors
Here are Denmark's best supermarket bakers: Discount chain beats expensive grocery competitors. It happens about once a week that Fie Sørensen from Viborg makes his way past one of the supermarkets' bakery departments and buys a ready-baked bun, a foccacia bread or maybe even a few warm sausage horns. "It makes everyday life a little easier," says 21-year-old Fie Sørensen from Viborg and elaborates: »I usually shop at discounter Lidl, because they have the widest selection, and their bakeoff just tastes best. I also shop in discounter Netto and discounter Rema 1000, for example, but their bakery departments are not as good at all. " Fie is in several ways on wavelength with a fairly large proportion of Danes. 21-year-old Fie Sørensen is happy to be able to get baked bread at friendly prices. The supermarkets 'freshly baked goods are so popular that almost four out of ten Danes, like Fie, shop in the supermarkets' bakery departments at least once a week. As many as 54 percent answer that they shop for baked goods in the supermarket at least every 14 days, a YouGov survey for B.T. That's the one. The second is the question of Fie's favorite supermarket baker. BT.dk has checked the customer satisfaction at the bakery departments of the various supermarket chains. With YouGov's help, we have asked the customers who have bought baked goods in the various supermarkets within the last two months to assess the chains' departments on three parameters: Quality, selection and the customers' general impression of the bakery department. And at the top, Lidl ends up with the best overall score. It achieves the German discount retail giant via a second place in 'general impression', a second place in 'selection' and a clear first place in 'quality'. Lidl's bread department ends up as the top scorer. Lidl's bread department ends up as the top scorer. "That Lidl is at the top does not surprise me," says Bruno Christensen, expert in retail: »The bakery department has been a clear commitment from Lidl for a long time, and they are leaders in several categories of fresh food throughout Europe. Although it is a chain in the cheaper segment, I am not surprised. " Lidl's victory also means that the discount chain, among other things, comes out of the survey a little better than, for example, SuperBrugsen, which ends right after Lidl, and chains such as Føtex and Bilka. Common to the three chains is that they unlike Lidl, which serves bakeoff often stand and bake the goods in the store. This is expressed, for example, by the fact that a cinnamon snail in Bilka, Føtex or SuperBrugsen is twice as expensive as a cinnamon snail from Lidl. ‘There can be no two opinions that the more expensive chains should end up better than Lidl in such a study. Of course, they will not be satisfied with that, "says Bruno Christensen. And then to the supermarket chains that customers have been hardest on. At least price does not mean everything. Because even though it is a discount chain that ends up at the top, it is also four discount chains that occupy the bottom four positions. The heaviest are the results at Fakta and Netto, which occupy the two lowest positions in the overall position. “It’s certainly not good for any of them, but it’s also about prioritization. They have not prioritized their bakery departments in the same way as Lidl has, and you can read that here," says Bruno Christensen. Back at Fie Sørensen in Viborg, she is happy that she can get baked goods for a little lower than at the classic bakeries. ‘Walking into Lidl is almost like walking into a bakery. These are always fresh items, and the prices are SU-friendly. I am a student, so it has to be connected financially, "she says. How the supermarkets are ranked: 1st place - Lidl 2nd place - Kvickly 3rd place - Bilka 4th place - SuperBrugsen 5th place - Føtex 6th place - Aldi 7th place - Rema 1000 8th place - Netto 9th place - Facts Click here for more: https://www.bt.dk/forbrug/her-er-danmarks-bedste-supermarkeds-bagere-billig-kaede-slaar-dyre-konkurrenter
- Austria: The antithesis to online shopping, discount retail, is booming
Constantly new stores and long queues in front of the shops: discount chains such as Action and Tedi are continuing their expansion course in Austria. The coronavirus pandemic, including lockdown, was apparently only able to slow them down for a short time. The next discounters are also in the starting blocks. The German chain Tedi now has 168 shops in Austria, and the trend is rising. And the chain Action, which was originally founded in the Netherlands, is opening its 74th store in Austria these days in Vienna's Lugner-City, thus also its tenth bstore in Vienna. Tedi mainly focuses on housewares and decor, garden accessories and handicraft supplies are just as much in the range as pet supplies. In the case of Action, the offers, for example, with sporting goods and home improvement supplies, but also food are thematically diversified. This is also due to the fact that the range changes constantly. Only a third of the approximately 6,000 products are always available. They advertise 150 new articles per week. Impulse purchases and "ungoogleable" products The promotional discounters are the countermovement to buying on the Internet, said Romina Jenei, managing director of Regioplan Consulting, which specializes in market and location analyzes in retail. The purchase motive is therefore a completely different one. While online shopping is more or less targeted, the non-food discounters are about impulse purchases. Customers would make a spontaneous decision, and of course the low price also plays a role. When shopping itself, it's also about the experience and about being surprised by offers. The chains would often also offer "ungoogleable" products, said Jenei. Penetrated into better locations And that is exactly what these chains would have recognized and can score with it. As with textile discounters, the turnover per square meter of retail space is a third of that of other and higher-priced stores. Therefore, the chains would rather switch to cheaper locations for their quite large shops. The expansion has been observed for several years. The fact that the chains are now even more present could be related to the fact that they are also penetrating better and therefore more expensive locations. With the lockdowns, rents would have fallen slightly, and owners would be more willing to give up their space cheaper, says Jenei. Success story in Germany In Germany, the run of success had already started earlier: Between 2013 and 2019, the promotional discounters grew by almost 40 percent, according to the Gesellschaft für Konsumforschung (GfK): Online booms are still going strong. ”And the pandemic was only able to slow down the expansion course a little: Last year, Action wanted to create more than 240 new stores in Germany. They realised around 160. Thousands of stores across Europe Action was founded in 1993 in the Netherlands, but it did not expand until the British investment company 3i Group took over the company in 2011. There are now more than 1,800 stores across Europe. The company has been represented in Austria since 2015. Tedi was founded in 2004 by the German Tengelmann Group, which also includes the textile discount store KiK and OBI hardware stores. Recently, Tengelmann gave its shares in exchange for KiK shares to the H. H. group of companies of the German entrepreneur Stefan Heinig. So far, there are more than 2,300 stores across Europe; In 2011, the first store outside of Germany was opened in Graz. Stronger demand for lockdowns Why the rush to the discounters' stores, which can often be observed, was so great after the reopening, can probably be explained by the increased need to equip your own four walls. Furniture stores and hardware stores are also heavily frequented, said Jenei. In the meantime, textile discounters such as KiK, Takko and NKD would also respond to the demand, they too would increasingly have other promotional goods in their range in addition to clothing. New chain is coming in autumn And the next competitor is also about to jump to Austria: the Pepco chain, founded in Poland in 2004, plans to open its first store in Vienna in autumn and 20 more by the end of the year. There are already around 2,300 stores, mainly in Central and Eastern Europe. In the west it is only represented in Spain and Italy so far. There are also more than 200 shops that are operated under the name Poundland in Great Britain. They rely on a mixture of household goods and clothing, the chain is especially known for its children's clothing. In other countries, too, they are pursuing an aggressive expansion course. According to reports, the first stores in Austria will be taken over by the Polish shoe discount store CCC, which is withdrawing. In Lower Austria and Burgenland there are so far eight stores of the Cherry special item markets, a chain that is also looking for other locations. And in Vienna, several shops with the name Apyco Home recently popped up, which, in addition to household goods, rely heavily on toys and children's bicycles. Euro shops as pioneers The pioneers in the cheap segment have been around for a long time, especially in the cities: under various names such as discount, best price, euro shop and the like, a wide range of products is offered in some cases from household goods to electrical appliances, from tools to textiles, from cleaning agents to toys. Even if the optics are often similar with mostly yellow or red shop designs, most shops are run by sole proprietorships. Only occasionally do several shops belong together. In principle, however, there is little data on these transactions, said Jenei. One can assume that most of them have similar suppliers. On the other hand, off-price stores such as TK Maxx fall into another category, which also attracts attention with long queues for waiting customers. The European store of the US chain TJ Maxx offers branded products at low prices by also buying remaining stock at low prices. These business models differ from an outlet in that it is not the brands themselves who sell their products, but a retailer who brings together items from different labels. Cut-throat competition at the local level In general, there is a trend in the retail sector that the middle price segment is coming under greater pressure, said Jenei. On the one hand the pressure comes from the high-priced shops, on the other hand also from the discounters from below. How long the discounters' expansion course can continue is difficult to assess, said Jenei. She rather expects that predatory competition could slowly set in, at least in some areas, but it always depends on the location and whether the target groups are available there and can be reached. See here for more: https://orf.at/stories/3216639/
- Colombia: Discounter D1 surpasses Olímpica and Discounter Ara beats Jumbo
Discount Retail Chains have been consolidated in different regions of the Colombia. In the year of the pandemic, strong competition in the retail sector played in favor of the D1 and Ara discounter brands, which rose through the sales ladder, beating rivals with more years of experience in the market, according to data from the Superintendency of Companies. According to the figures totaled by the control and surveillance entity, during 2020 the firm Koba Colombia, which operates the D1 brand, reached sales of 7.37 billion pesos (US$ billion), for an increase of 48 percent compared to the 4,98 billion pesos (US$ billion) that he obtained in 2019, and that allowed him to go from fourth to third place in the ranking. In this way, D1 moved from that place to Olímpica, which in terms of sales was in fourth place during 2020, with a total turnover of 6.32 billion pesos (US$) compared to 6.59 billion pesos (US$) in 2019. D1, Viva Air, Smart Fit and other discount retail chains are the winners in the pandemic. Similarly, the firm Jerónimo Martins, of Portuguese origin and which operates Ara supermarkets in Colombia, increased its sales level from 3.16 trillion pesos (US$) in 2019 to 3.94 trillion pesos (US$) in 2020 (increase of 24.5 percent per year), which served to move from sixth to fifth place in the retail business ladder. This led to it now occupying the position that Cencosud (Jumbo and Metro operator) had, whose sales only rose 0.4 percent last year, totaling a turnover of 3.9 billion pesos (US$). See here for more: https://www-eltiempo-com.cdn.ampproject.org/c/s/www.eltiempo.com/amp/economia/empresas/d1-y-ara-ascendieron-en-escalafon-de-la-superintendencia-de-sociedades-595291
- Belgium: Aldi's road to 100% recyclability
Discount Retail Chain ALDI Belgium and Luxembourg (German family owned) has sustainable packaging high on its agenda. “That starts with avoiding or reducing packaging where possible,” says Stefaan De Schepper, Corporate Social Responsibility Manager at ALDI Belgium and Luxembourg. “And where packaging is absolutely necessary, we go for 100% recyclable. We work closely with Fost Plus to ensure that our packaging can be integrated into the system as well as possible.” In recent years, consumer awareness of packaging has increased significantly. The subject receives a lot of attention in the media and governments are increasingly strict about the packaging that comes onto the market. “Packaging is also high on the agenda in our own CSR policy,” says Stefaan De Schepper. “Today we have a 'dedicated' team that works full-time on the theme of sustainable packaging. This gives us the necessary space to develop our policy and realize great projects.” Every gram counts As a discounter, packaging reduction is in ALDI's DNA. “The drive for efficiency and optimization goes hand in hand with sustainability for us. Saving one gram of cardboard or plastics on an item with a large rotation has a major impact on the cost of the packaging at the end of the journey and therefore also on the item,” says Stefaan De Schepper. “So we are the last to add packaging when it is not strictly necessary.” Aldi has also formulated concrete objectives for packaging reduction. By the end of 2024, the total weight of packaging for own products must be reduced by 10%. For some categories (such as fruit and vegetables), ALDI is going a step further and is looking to eliminate packaging altogether where possible. For example, the plastic bag around the organic fair trade bananas was replaced by a simple banderole last year, while more and more fruit and vegetables are offered in bulk unpackaged. Facts and Emotions Yet ALDI does not just go along with the demonization of packaging, and plastics in particular. “We don't let our choices depend on the perception that lives around a certain material. For us, the shelf life of products remains essential, because food loss almost always has a much greater environmental impact than that of the packaging, especially when it is recycled correctly. In many cases, plastics remains the most suitable material, sometimes even the only possible material. And when plastic packaging is 100% selectively collected and recycled, it is often one of the most sustainable solutions.” The road to 100% recyclability When packaging cannot be avoided, ALDI resolutely opts for recyclable materials. By the end of 2025, the company aims to achieve 100% recyclable packaging for all its own brand products throughout Europe. “In Belgium, we expect to achieve more than 99% by the end of next year. We closely follow the advice of Fost Plus. For example, when we examined our meat packaging, we decided to replace all black packaging, which are not recognized in the sorting centers, with transparent trays.” ALDI also resolutely opts for recyclable packaging in other product groups such as snacking and fruit and vegetables. “Colored PET dishes are systematically replaced by the transparent variants that are more recyclable. So yes, the iconic blue mushroom tray will probably disappear from our shelves soon. We are currently running an extensive test project for this. In addition, we have also removed the last foam trays from our range. Sometimes we also look at specific products and packaging: for example, we switched the organic courgettes from a plastic flow pack to a banderole and we now opt for cardboard packaging instead of plastics for the Kanzi XS apples.” The last stumbling blocks Nevertheless, a number of stumbling blocks remain. “Composite and especially laminated packaging, which, for example, combine plastics with aluminum, are difficult to recycle. For a number of products such as animal feed, coffee or dairy, they remain essential for the time being. Through our contacts with Pack4Food and Fost Plus we notice that alternatives are on the way there too. The industry is clearly not standing still and we are convinced that we will also be able to close the cycle for that packaging in the coming years," concludes Stefaan De Schepper. See here for more: https://www.fostplus.be/nl/over-fost-plus/nieuws/case-study-aldi-de-weg-naar-100-recycleerbaar?utm_medium=organic_social&utm_source=linkedin&utm_campaign=17/06
- Spain: Lidl realised US$6 Billion sales and will invest US$440 mio this year in openings
Discount Retail Chain Lidl Spain (owned by the German Schwarz Group) grew 9.7% last year in the Spanish market. Lidl, the German discount retail chain, closed fiscal year 2020 with a new turnover record in Spain, in a year in which confinement and restrictions on leisure outside the home triggered domestic consumption. In this context, the company registered net sales of euro 4,825 million (US$5.8 Billion), which represents a growth of 9.7% compared to the previous year and is increasingly close to US$6 Billion. A barrier that, given the trajectory it has been showing in recent years, should be overcome with relative ease in 2021. "In an extremely complicated year for all of us, we have learned to adapt to the circumstances and react by focusing our efforts on ensuring the health and safety of our employees and customers, guaranteeing the supply of our stores and redoubling our commitment to Spain", he explains in a statement the general director of Lidl Spain, Claus Grande, who thanked his staff for their efforts "for making it possible for Lidl to continue providing an essential service to the population and to our customers for having continued to trust us, allowing us to contribute decisively to the economic reactivation of a country for which we will continue betting in the future.” During the past fiscal year, which Lidl concluded on February 28 of this year, the chain opened 40 new stores, exceeding 630 stores. As reported by the company, it allocated 350 million euros (US$ 420 mio) both in these openings and in the inauguration of a new logistics warehouse in the town of Agüimes, in Gran Canaria, which already has 11 logistics centers in the country. With all these actions, it created a total of 2,000 new stable jobs during the past year. In the last five years, Lidl has allocated euro 1.7 billion (US$2 billion) to growth in Spain and has added nearly 5,900 new jobs, increasing its workforce by 36% and exceeding 17,000 people. An effort that will continue, and with greater force, in 2021. As reported, during this year it will make a record investment of € 400 million (US$480 mio), to add another 40 new stores to its chain and to expand its logistic centers. At the beginning of the year, it acquired land in Parla, and during 2021 it will begin work on the new warehouses in Escúzar (Granada) and Martorell (Barcelona) and in autumn it will launch what will be its new benchmark logistics platform for northern Spain in Nanclares de la Oca (Álava). See here for more: https://cincodias.elpais.com/cincodias/2021/06/16/companias/1623840697_449029.html
- Serbia: Lidl fresh managers reveal how to quickly and easily choose the best fruits.
Due to the multitude of vitamins, minerals, fiber and other substances important for the proper functioning of the body and strengthening of immunity, fresh fruits and vegetables are indispensable in all guides to a healthy and balanced diet. Enjoying these fruits can be an ideal combination of taste and health, but only if you know how to choose really fresh fruits. Discount Retail Chain Lidl Serbia (owned by the German Schwarz Group) pays great attention to the freshness of fruits and vegetables, and specially trained freshness managers are in charge of constantly checking the quality of fruits at the Lidl stores, guaranteeing consumers vitamin fullness and impeccable taste, which you can recognize in green T-shirts in Lidl stores. To make our next purchase easier, they shared with us useful tips that you can find below, because freshness is loved. PAY ATTENTION TO THE OUTSIDE When choosing fruits, especially bananas, apples, tomatoes and cherries, look for bright and fully colored pieces, without traces of green or white color, unless the fruit naturally has these colors. Color change is an excellent indicator of maturity. When it comes to iceberg lettuce, for example, the main indicator of freshness is a firm head and leaves without dark spots and damage. CHECK THE AROMA Smell is a great indicator of taste, especially when the color is unreliable, as with most melons. Smell the floral fruit (opposite the stalk) and choose only fruits that have a fresh, fruity aroma. Strengthen your senses! FEEL THE TEXTURE As the fruit ripens, the substance that holds the cells together breaks down and turns into pectin, making the fruit softer the more ripe it is. This means that lightly squeezing the fruit can be an excellent indicator of maturity, and it is especially useful for fruits without a hard or thick rind, such as stone fruits, pears, kiwis and avocados. CHOOSE HEAVY As for the fruit, it is hardly good. Fruits that seem heavy are often allowed to ripen completely, so feel the tomatoes and grapefruit and make sure they are heavy. RECOMMENDATION In addition, Lidl advises that it is better to buy fruits and vegetables more often in smaller quantities, than less often in larger quantities. Carrots, primroses and beets are some of the foods that quickly show signs of spoilage, and you should pay special attention to them when buying. And last but not least, the headline made you read this article. What makes Lidl stores a safe choice when it comes to buying fresh food is precisely the quality and proven origin of fruits and vegetables. Lidl fresh managers guarantee this! About Lidl Lidl is part of the German Schwarz Gruppe, one of the leading food discount chains in Europe. It operates in 32 countries around the world and has more than 310,000 employees. Lidl opened its first stores in Serbia in October 2018 and currently has 50 very profitable stores in 32 cities across the country. We have long-term plans with the goal of offering consumers throughout Serbia a unique shopping experience and the best price-quality ratio, by which we are recognized in the world. Based on the certification by the Top Employers Institute for the best employer, Lidl is the holder of the "Top Employer Serbia" and "Top Employer Europe" certificates for 2021. See here for more: https://retail.rs/kako-prepoznati-sveze-voce-i-povrce
- Research: The pandemic halts the appearance of new innovative products in supermarkets
According to the consulting firm Nielsen, the level of innovation has fallen by 31% in Spain during the year of the pandemic, compared to the 19% decrease in the five main countries of the European Union. The pandemic halts the appearance of new innovative products in supermarkets The coronavirus pandemic has given the finishing touch to the appearance of new products on the shelves of distribution chains. This week, the general director of NielsenIQ for Southern Europe, Patricia Daimiel, warned about this during her participation in the 26th Aecoc Congress of Commercial Strategy and Marketing. "Innovation has been the great forgotten in these months. Much has been said about prices, assortment ... but not innovation," she lamented. The pandemic has increased the demand of the mass consumer market within the home, which has caused a delay in the entry of new products to the market. Given the large increase in consumer demand, especially at times marked by strict containment measures, the distribution prioritized having product available on the shelves. "We have been in survival mode, the priority was safety and the rest was secondary," he says in conversation with El Independiente Laureano Turienzo, president and founder of the Spanish Retail Association. Although precisely the pandemic and the new needs arising from it also represent a window of opportunity for companies to bring new products to the market. But Daimiel warned of the need to rethink which innovation strategy to apply, as a bad decision can lead to great costs. "Many innovations can cannibalize up to 25% of the parent brand," she said. For his part, Alfonso Sebastián, co-founder and vice president of the Spanish Retail Association (AER) remarks in conversation with this newspaper that the lack of innovation on the part of the mass consumer industry “is not something that has been caused by the pandemic , but has accumulated a progressive decline for the last ten years." According to data from the consulting firm Nielsen, the level of innovation has fallen by 31% in Spain during the year of the pandemic, compared to the 19% decrease in the five main countries of the European Union. In this sense, recent data from the ‘Radar of Innovation 2020’ study carried out by the consulting firm Kantar show a drop of 44% between 2010 and the first year marked by the pandemic. For its part, the first data from the sixth barometer ‘Consumption and shopping inside and outside the home after COVID 19’, carried out by the Aecoc association reflect that there are more and more consumers who ask to find innovative items on the shelves. And 29% say that at the moment they find fewer new products, while 25% say that they cannot find articles suitable for the new needs derived from the health crisis. In any case, OEM manufacturer brands are the ones who continue to bet on bringing new products to the shelves, while distribution brands do so to an almost testimonial measure. Specifically, 98% of the producers, compared to 2% of the chains. Little presence in some retailers Also, brands complain that their presence in some distribution chains is too low. According to the aforementioned report, Mercadona references 7% of the innovative products of the OEM manufacturer's brands, while Aldi and Lidl 8% and 10%, respectively. DIA is the chain that incorporates the fewest innovations, with 3%. On the contrary, Carrefour (67%), Alcampo (36%), Eroski (31%) and El Corte Inglés (30%) are the supermarkets with the highest levels of new products on their shelves. "I believe that the downward trend is going to continue," adds Sebastián. On the forecasts of mass consumption for the end of the year, the sector will close the year with a growth of 1.4% over 2020 sales, according to the consulting firm Nielsen. Although everything will depend on the control of the pandemic and the situation of mobility and tourism this summer. See here for more: https://www-elindependiente-com.cdn.ampproject.org/c/s/www.elindependiente.com/economia/2021/06/12/la-pandemia-frena-en-seco-la-aparicion-de-nuevos-productos-en-los-supermercados/amp/
- Germany: Minced meat from the bag:
Discount Retail Chain Aldi (privately family owned) started with the ambitious goal of saving plastic as much as possible. With German start-ups, the discounter has shown ways in which packaging waste can be saved. The idea is not new. Supermarkets such as Edeka and Rewe also set high goals. There are reasons for this, which we also explain in the video. Anyone who buys minced meat from Aldi Süd, Aldi Nord, Lidl or Rewe will now find the meat in a practical plastic bag. Flowpack (see photo at the end of the article) is what the sellers of the markets say. Instead of a box, lid and protective pad, the minced meat is now in a plastic bag. Rewe first introduced the concept, in February 2020 the hack bag also appeared at discounter Primus Aldi Süd, and in June 2020 it was also available from Aldi Nord. Arch-rival Lidl also followed suit with the flowpack concept. It is just one of many measures that have already been implemented at Rewe, Aldi, Lidl and Co. to save packaging waste. Many more are to follow. Aldi alone wants to reduce packaging waste for its own brands by up to 30 percent by the end of 2025. This is one of the reasons why customers are discovering more and more changes in the branches. Initially, for example, the plastic bag at the checkout was abolished, then the discounter removed the plastic film from the cucumber and instead of packaged fruit and vegetables, customers can now take the goods in the desired quantity from the cardboard box or box, have them weighed at the checkout and pay. By 2025, half of the fruit and vegetable counter should consist of loose goods. So far, Aldi has relied on the bestsellers and arch-rival Lidl is also pursuing similar goals. Loose fruit and vegetables have also led to an increase in sales in the branches. Aldi organic tomatoes are packaged in a specific eco-friendly way A simple example shows how important such measures are: Aldi was able to save almost 120 tons of plastic simply because the popular organic tomatoes were packed in a box made of renewable grass fiber. Loose fruit and vegetables have also led to an increase in sales in the stores. Supermarkets generate a lot of packaging waste However, because the problem cases in supermarkets are lined up meter by meter, criticism hails again and again. The waste disposal industry wants a new course. As examples, Axel Schweitzer, head of the disposal company Alba, cites plastic trays in which sausage or cheese are stored, and plastic cups that are wrapped in cardboard and sealed with aluminum foil. Such packaging cannot be separated in sorting systems or is only very difficult to separate, which is why they are incinerated to generate energy. "This means that they are forever withdrawn from the circular economy." This needs to be changed. Competitors like Veolia and Remondis see it similarly. Plastic and plastic trays have many advantages for manufacturers and consumers, as the food has a long shelf life. The problem: If you go to a supermarket, you will find such bowls almost everywhere. This is another reason why the goals of the supermarkets are ambitious. Almost all retailers do not want to completely ban plastic and plastic, they just want to greatly reduce packaging waste. The plastic or plastic packaging remains where it is still needed. See here for more: https://www.chip.de/news/Hackfleisch-aus-dem-Beutel-Warum-Aldi-Rewe-und-andere-auf-die-Hack-Box-verzichten_183657394.html
- Germany: ALDI sets 30% global goal for recycled content in plastic packaging
Discount Retail Chain ALDI SOUTH Group (German family owned and active in 11 countries globally) is committed to using an average of 30% of recycled content in plastic packaging across the Group by 2025. Plastic pollution is one of the greatest challenges of our time. In order to reduce the use of raw materials in plastic packaging and to promote a circular economy. Plastic packaging plays an important role in protecting products and helps to ensure their quality and to avoid food waste. However, the large amount of plastic that is used today has created an environmental crisis. As an international company and global retailer, we are aware of our responsibility. We are determined to implement environmentally-friendly and responsible product packaging across all our markets. Moving from a linear economic system to a circular one is a key pillar of our international CR Strategy and Vision for 2030. ALDI aims to achieve an average recycled content share of at least 30% in plastic packaging by the end of 2025. Roadmaps are being developed for all ALDI countries to reach this recycled content rate. What is recycled content? Recycled plastic is made from materials that have been collected and recovered, while virgin plastic is new plastic mainly made from crude oil. Why is the use of recycled content important? The use of recycled content not only reduces the amount of virgin material, but also creates incentives for setting up a collection and recycling infrastructure. Using recycled instead of virgin materials also improves the climate impact of packaging. Our commitment to packaging We have set ourselves ambitious goals to increase the material efficiency and circularity of the ALDI own brand product packaging: We are fully committed to reducing and removing unnecessary plastic and packaging. The packaging for many of our products have been already changed and optimised. By working with our buying department, our suppliers and external partners, we are constantly looking for new and better packaging solutions. We aim to ensure that our product packaging does not contribute to environmental pollution and support the establishment of an effective recycling infrastructure in all our operating markets. See here for more: https://cr.aldisouthgroup.com/en/responsibility/news/aldi-sets-30-global-goal-recycled-content-plastic-packaging
- Denmark: New packaging at JYSK reduces 27 million plastic bags every year
Furniture Discount Retail Chain JYSK (privately owned) operating over 2,900 stores with 26,500 employees in 51 countries. The annual turnover of JYSK amounts to 4.1 billion euros / US$ 5 billion (FY 2019/20). JYSK will switch the packaging of bed linen and sheets from plastic bags to FSCTM-certified paper tapes. This saves 27 million plastic bags per year. Sustainability is an important part of JYSK's strategy. JYSK strives to use renewable and more sustainable packaging that is easy to recycle. Now the company is taking a giant step towards reducing plastic and the next initiative is new packaging for bed linen and bedclothes that completely eliminates plastic. A circumferential paper tape replaces the plastic packaging. The first products with the new packaging are now on sale. In a transitional period, they will be sold together with products with the old packaging until they are sold out. By eliminating 27 million plastic packaging for bed linen and sheets that JYSK sells worldwide every year, around 475 tons of fossil-based plastics are saved every year. “The reduction of 27 million plastic bags per year is enormous. This reduces our carbon footprint and offers our customers an outer packaging that is easy to recycle at home. If the 27 million plastic bags we are eliminating had been crumpled up and thrown on the floor of an average JYSK store of around 1,200 square feet, the plastic would fill the store above head height,” said Sam Harrington, sustainability manager at JYSK. Easy to recycle The new packaging is FSCTM-certified material (FSCTM N001715). FSCTM is the abbreviation for "Forest Stewardship Council". It is a non-profit organization and labeling system for wood and paper that comes from sustainable forestry and takes animal and plant life into account. “This is a project I've been working on for several years and we've gone through a lot of different types of packaging along the way. Our goal was to find a more sustainable packaging design for bed linen and sheets of good quality, and I am more than satisfied with the result,” says Kathrine Møller Vinther, Category Manager for bed linen and sheets at JYSK. The new packaging also makes it easier for customers to simply recycle them at home using the waste paper. “We will not be able to get rid of the use of plastic bags on all types of packaging and these 27 million plastic bags are only a small part of the general use of plastic by JYSK and around the world. However, all small initiatives are important and we will continue to work to reduce plastic as much as possible,” says Lars Høgh Jensen, specialist in packaging development at JYSK. See here for more: https://presse.daenischesbettenlager.de/pressreleases/neue-verpackungen-bei-jysk-slash-daenisches-bettenlager-sparen-jaehrlich-27-millionen-plastiktuten-ein-3069411












