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- Germany: Lease cars at Lidl
Discount Retail Chain Lidl Germany (owned by Schwarz Gruppe) is using its internet presence to offer customers cars for leasing in the future. It started this Monday with a Kia Stonic Vision. The model on offer, a so-called city SUV, is black, has a 100 hp engine and, according to official figures, consumes 5.2 liters of gasoline, which causes 120 grams of CO2 emissions. The lessor is not Lidl itself, but Sixt Leasing. The business is brokered through the Berlin start-up Vehiculum, which has established itself as a platform for a whole range of leasing offers and now has external sales of more than 500 million euros (US$ 600million). According to Vehiculum, an unlimited collaboration has now been agreed with Lidl. At what intervals and how many cars of which brands are offered via Lidl, they do not want to reveal yet. The partners launched their first test balloon two years ago, at the time with a Fiat 500, of which 1,000 were released within a week. Lidl offers the cars on its own website, which has had almost 28 million visits in the past six months, and via the Lidl app, which has recorded more than 10 million downloads in the Play Store. See here for more: https://www.xing-news.com/reader/news/articles/3846000?cce=em5e0cbb4d.%3AAJwBWBcW7GcoEXD_TofbAl&link_position=digest&newsletter_id=72825&toolbar=true&xng_share_origin=email
- Global grocery retail to add US$440bn in sales by 2022
The global grocery retail market is on track to generate an additional US$440bn in sales between 2020 and 2022, yielding a 3.1% CAGR (compound annual growth rate), according to our latest forecasts. IGD looked at the detail behind this growth. An exceptional 2020 driven by the pandemic The increase in sales for the period follows an exceptional growth for grocery in 2020, which saw the top 20 markets grow by US$280bn, representing growth of 8.8% year-on-year. Accelerated growth in most of the global retail market in 2020 was driven by a shift in consumer spend from out-of-home to at-home as a result of pandemic lockdown restrictions. Key findings 2020-2022 India will be the fastest growing country over the period 2020-22 with a CAGR of 7.2% The US will remain the leading market driven by e-commerce and discount value retail formats In the medium-term, Central and Eastern Europe is expected to grow faster than Western Europe with high pressure on price Growth in China will remain robust and the accelerated shift towards convenience and online will continue Uncertainty in North America There’s a high degree of uncertainty relating to the economic outlook in the US, which is dependent on the level of financial support from the new administration and the vaccine roll-out. We expect relatively flat growth over the next two years but any growth we do see is likely to be driven by e-commerce and discount and value retail formats. The pandemic has slowed the gradual loss of share by supermarkets and hypermarkets as shoppers have consolidated their trips in larger stores and we expect this trend to continue. Suppliers have had an unprecedented opportunity to capture new households during the pandemic. Focusing on retention and repeat purchase will help to consolidate the share gains from 2020. Robust growth in China With most of China having been virus-free since April 2020; growth for the grocery retail market will remain robust. The ongoing trend of consumers shifting towards online channels has accelerated and social platforms will continue to drive online traffic and sales. Consumers are increasingly demanding an ultra-convenience experience and omnichannel services such as speedy home delivery, QR code scanning and self-checkout will be widely adopted. The rise in popularity of community stores and omnichannel retailing is changing the dynamic of the grocery market. Suppliers will need to broaden their customer base and reach potential shoppers in lower tier cities and appeal to them with relevant products, because that is where the retailers are heading. Economic challenges in Western Europe Economic challenges are expected across most of Western Europe in 2021, so retailers will need to focus on price to remain competitive. Pre-COVID trends have been accelerated by the pandemic, which has hastened the switch to online across most markets, resulting in further investment in this channel. In the UK, following a dramatic shift of consumer spend from foodservice into grocery retail in 2020, sales growth will moderate as the national vaccination programme allows the hospitality sector to reopen. Online is set to retain its elevated market share and big weekly shops will remain popular. Winding down of financial support and rising unemployment will result in some households economising on grocery shopping while others may spend less as eating out begins to recover. See here for more: https://retailanalysis.igd.com/news/news-article/t/global-grocery-retail-to-add-440bn-in-sales-by-2022/i/27766?utm_source=linkedin&utm_medium=post&utm_campaign=retail_analysis&utm_content=Stewart
- Poland: Biedronka's plans for 2021
Discount Retail Chain Biedronka (owend by Portuguese Jeronimo Martins) plans for 2021 approximately EUR 700 million (US$ 842million) in investments, 100 new stores. The plan for this year provides for the opening of approx. 100 new Biedronka net stores (approx. 50% in a smaller format) and the modernization of 250-300 stores. Jeronimo Martins, owner of incl. Biedronka stores, assumes that this year's capital expenditure will amount to approx. EUR 700 million, of which 60%. will concern the Biedronka chain, the company informed. The plan provides for the opening of approx. 100 new net Biedronka stores (approx. 50% in a smaller format) and the modernization of 250-300 outlets. We enter 2021 with the reinforced belief that the networks belonging to the Jeronimo Martins Group are able to respond quickly and effectively to the challenges of a pandemic - said Pedro Soares Dos Santos, CEO of the Jeronimo Martins Group In 2020, the group's CAPEX amounted to EUR 470 million (US$ 566million), of which 64% (EUR 302 million/US$363 million) is related to the investment in Biedronka. A year earlier, the group's expenditure amounted to EUR 678 million (US$816 million). The company allocated EUR 41 million (US$50million) to COVID protection, including antibacterial masks and gels for store employees. Consolidated revenues amounted to EUR 19.3 billion (US$23billion, +3.5% compared to 2019). Consolidated EBITDA amounted to EUR 1.4 billion (US$1.7billion, decrease by 1% y-o-y). Profit amounted to EUR 312 million (US$375 million, decrease by 19.9%). The Management Board will recommend a payment of PLN 181 million (US$ 48million) in the form of dividends to shareholders. In Poland, the chain had revenues of EUR 13.5 billion (10.4% more yoy in the local currency and 6.7% in EUR). This means an increase of 7.1%. in terms of LfL. EBITDA amounted to EUR 1.25 billion (US$1.5 billion, an increase of 9.3% in PLN). 129 stores were added and there were 3,115 stores at the end of 2020. 267 stores underwent modernization. There are also as many as 3,750 self-service checkouts in over 1,100 stores. The network spent EUR 302 million on investments. Biedronka increased its market share by 1.6% points to 25.7%. The company introduced 196 new private label products. Currently, private labels are responsible for 40%. networks. The chain started cooperation with Glovo and in 28 cities it delivered purchases from its stores. The network also increased the number of outlets by 400 that donate food with a near-use-by date to public benefit organizations. 94% employees of stores and distribution centers received pay raises. On average, the salary increases were 10%. The company said that the macroeconomic outlook for 2021 depends largely on the development of the pandemic and the rate of vaccination. As noted, there is still uncertainty about the possible introduction of restrictions, at least in the first half of the year. It is also unknown how these restrictions will affect consumer behavior. As Jeronimo reported, the group companies' goals are, inter alia, increase sales and protect profitability through cost discipline and improvement of operating processes. Jeronimo Martins expects that, as in 2020, domestic private consumption in Poland will be the strongest of all the markets where the group is present. Food inflation should remain low despite the impact of the trade tax and the sugar levy. In 2020, food inflation was 4.7%, GDP fell by 2.8%, and private consumption fell by 3%. At the same time, the minimum wage increased by 15.6%. The number of trading days decreased by 6 days. See here for more: https://www.dlahandlu.pl/wiadomosci/,96217.html
- Poland: new warehouse for Biedronka
Discount retail chain Biedronka (owned by Portuguese Jeronimo Martins) has divided Poland into 15 logistic regions. From March 1 this year. the distribution center in Gorzów Wielkopolski will become the independent capital of the new 16th region in the Biedronka chain, serving approx. 170 stores in its region. The Gorzów warehouse, located at ul. Metalowców 6 is the largest and most modern facility in the network. The new region will start operating on March 1, 2021, thus the Distribution Center will fully perform an independent organizational and billing function in the structures of the Biedronka network. The Distribution Center in Gorzów Wielkopolski, opened in 2017, served until recently 173 stores from the 3 existing regions, Kostrzyn, Koszalin and Lubin. Ultimately, the center will supply facilities in the Dolnośląskie, Lubuskie, Wielkopolskie and Zachodniopomorskie provinces. The logistics system of Biedronka consists of 16 distribution centers totaling over 400 thousand. m2 of warehouse space. Such a network helps to ensure optimal efficiency of the supply chain to more than 3,115 stores located in more than 1,100 towns in Poland. From March 1, 2021, in connection with the creation of a separate management unit, organizational structures will be simplified, which will result in greater efficiency in store management. For customers, this should mean delivering fresh produce to stores when needed. The purpose of creating a separate region is to unify the structure within the company. Thanks to this transformation, we will be able to respond better and more efficiently to the changing needs of customers. We will also be closer to our stores, which will improve the quality of their operation and increase satisfaction with shopping at Biedronka. The distribution center in Gorzów has over 31.000 m2 of modern warehouse space. Its size corresponds to the area of the Gorzów Speedway Stadium. Edward Jancarz, additionally enlarged by a football field. Over 400 people work here every day, which is as much as 36 full football squads or 100 speedway teams. They ensure that the center punctually leaves more than 5,800 pallets packed for 59 constantly running fleet vehicles. Deliveries to all 173 stores are implemented comprehensively, their punctuality is 91%, despite the fact that the average distance to the outlets is as much as 183 kilometers. The construction uses solutions reducing the impact on the environment, such as intelligent lighting systems adjusting the light to the level of natural light intensity. The optimal temperature for storing fresh products is based on the technology of using natural CO2 gases. See here for more: https://media.biedronka.pl/129413-gorzow-wielkopolski-stolica-dzieki-biedronce
- Spain: The supermarkets grew the most with the pandemic with Lidl ahead
COVID was a decisive factor in the growth of purchases in supermarkets whose spending is estimated at 95 Billion euros. 2020 will always be remembered as the year of the coronavirus and, more specifically, by the confinement in Spanish homes during the spring. These months were decisive for purchases in Spanish supermarkets to show a growth of 6.5%, according to data from the consulting firm Nielsen. In total, the Spanish spent 95 billion euros on purchases. Of the 6.5%, the great part is due to the increase in purchases , specifically 4.4%. The remaining 2% is explained by the rise in prices. Lidl has been the supermarket that has grown the most during the last year, reaching 67% penetration (67 out of 100 people remember having bought in a supermarket of this German chain during the last year) when in 2017 it was 62%. For its part, Mercadona continues to be the leading chain in Spain with 92% penetration. Regional supermarkets have experienced a big rise with a 22% share . The supermarkets that have fallen the most have been those of the Día chain, while the rest of supermarkets (Carrefour, El Corte Inglés, Auchan or Eroski) have remained at similar levels. The highest growth occurred during the months of confinement (29% more), representing the highest peak in the week of March 9-15, after the declaration of the State of Alarm, when they increased by 72% compared to the previous year. Few closings and online growth At the end of the year, there were a total of 22,246 establishments in Spain , which means a total of 64 less from the previous year. Of the total, there are 22,031 supermarkets (99%) and only 474 hypermarkets. In terms of surface area , the smallest (<300 square meters) stand out, which are 9,514 (42% of the total). Meanwhile, the largest hypermarkets (>6,500 square meters) only represent 1.1%. Regarding online commerce, fostered by the fear of contagion, the figures doubled compared to the previous year and at the beginning of 2021 they reached a weekly average growth of around 115%. The greatest growth has occurred in the category of fresh products (+ 150%) since, according to the director of NielsenIQ Spain, Patricia Daimiel " the fear of this channel is being lost, even in older ages," she said in statements collected by Financial Food. See here for more: https://as.com/diarioas/2021/02/14/actualidad/1613292406_807535.htm
- Poland: Vollmart a new hard discount chain opens first store
Discount Retail Chain Vollmart (owned by Brand Distribution, the biggest European parallel trader of branded products) opens its first store in Poland. The first discount store of the new Vollmart chain, created by the well-known businessman Wiktor Sawosz, will open in Siedlce. The retailer will develop in a hard discount model, similar to the Russian hard discount chain Mere, it will reduce costs to an absolute minimum in order to be able to offer customers cheaper products than those of competitors. Our strategy is to open the Vollmart hard discount stores in cities with more than 50,000 inhabitants, in attractive, well-connected locations, says Joanna Bielecka, manager of the purchasing department in the new chain, to the website Komunikoscihandlowe.pl. The economic situation and the expansion of Vollmart hard discounters in other towns will show whether Warsaw will be an attractive market for us, adds the representative of Vollmart. The company does not officially announce the pace at which it intends to develop the chain of stores. It is worth recalling, however, that Wiktor Sawosz (owner of Brand Distribution), signaling his will to create a new retail network in 2020, mentioned plans to "pilot 3-5 stores, including in Białystok (...) and in Warsaw". Without revealing almost any details of the project, he indicated then that the test period would last several months, and that ultimately the concept could be developed not only in Poland, but "also in other European countries". The company name of the hard discount network indicates its enormous ambitions. The word "Vollmart" evokes immediate associations with the American Walmart, the largest chain of stores in the world. However, the Polish "equivalent" of the network controlled by the Walton family does not make such a comparison. "Voll" in German means "complete, complete". Hence, Vollmart's slogan is: "Full of Opportunities". Today we are focusing on the development of the network in Poland, but our plans are related to expansion into foreign markets, which is why we were looking for a universal name, explains Joanna Bielecka. The first Vollmart was launched not in Białystok, but in Siedlce, a city where more and more commercial concepts have recently debuted (Topaz Cash & Carry, previously Selgros wholesale in a new, smaller format). The store was opened at ul. 3 Maja, close to the city center, on the ground floor of a modern building, which was built on the site of a former tin with a small Tesco supermarket. 10 people found employment in the discount store in Siedlce. As we have established, Vollmart also employs eight employees at its headquarters. The offer of the facility includes food products, such as dairy products, cold cuts, meat, sweets, drinks, but also cosmetics, household chemicals, kitchen accessories, household appliances and articles for animals. The store's permanent assortment will consist of 800 to 1,200 products. The offer will rotate depending on customer preferences. If the goods do not meet with interest, we will replace them with new proposals, announces Joanna Bielecka. In Vollmart, at least for now, customers will not find fresh products such as bread, fruit or vegetables. In turn, the cold cuts will be available in the form of hermetically packed, portioned products. The chain also does not plan to develop its own brands, instead it promises to bet on "popular and known" local producer brands. Vollmart intends to fight for prices with Biedronka, Lidl and other Polish discount competitors. Vollmart intends to keep the prices for the entire assortment at a level of at least 20% lower than prices in other stores. Vollmart will offer its clients the lowest prices on the market, which means that we compete with every network, while guaranteeing the client a completely new format of a modern hard discount on the Polish market. We want to share the margin with our customers, says Joanna Bielecka. Keeping low prices in the store is to be possible thanks to the resignation from unnecessary costs in the form of newspapers, advertisements or expensive equipment. The goods at Vollmart will be sold, as is the case in hard discount stores, straight from the pallets. Our client is guided by common sense, wants to buy wisely, not to overpay. Remember that in the Vollmart hard discount store we select the offer in terms of basic needs and verify it in terms of quality, explains the representative of the chain. See here for more: https://www.wiadomoscihandlowe.pl/artykul/dzis-rusza-pierwszy-sklep-vollmart-poznalismy-plany-nowej-sieci-hard-dyskontow-galeria-tylko-u-nas
- Germany: REWE Group is the second largest food retail group in Europe
REWE Group (also owned of the discount retail chain Penny) has cracked the 75 billion euro (US$ 91billion) mark for the first time. The REWE Group benefited from the Corona restrictions in 2020 and sees itself on the verge of becoming the second largest grocer in Europe. In the past financial year, the Cologne-based cooperative trading and tourism company reportedly broke the 75 billion euro mark for the first time. “This will make us the second largest food retail group in Europe, behind the Schwarz Group (owner of discount retail chain Lidl). We are likely to have overtaken Carrefour and discount retail chain Aldi in Europe,” said Rewe CEO Lionel Souque of the German newspaper Frankfurter Allgemeine Zeitung. The Schwarz Group, which operates more than 12,000 stores worldwide with its Lidl and Kaufland divisions, recently achieved sales of more than 110 billion euros (US$ 134billion). According to the information, the takeover of Lekkerland accounted for 12 billion euros (US$15Bn) of REWE's sales growth. “In terms of earnings, too, we will compensate for the losses from other areas such as tourism,” announced Souque, with a view to the sales losses of the subsidiary DER Touristik. The REWE boss is critical of the state aid for the competitors FTI and Tui: “We will not allow the loan to be waived in the end. Many agreements are not transparent, which is why we also speak to the EU Commission.” DER Touristik has not yet had to apply for any government loans and is not planning to. See here for more: https://www.xing-news.com/reader/news/articles/3830071?cce=em5e0cbb4d.%3Adn257q5nLwzxV1evl5nNAB&link_position=digest&newsletter_id=72546&toolbar=true&xng_share_origin=email
- USA: Aldi among top winners in 2021 Product of the Year Awards
Discount Retail Chain Aldi USA (privately owned) is one of winning companies for the Product of the Year USA. 41 winning items in the 2021 Product of the Year Awards, food and beverages accounted for a quarter of the honored products. Announced yesterday, each of the winning products was recognized as the most innovative in their category by New York-based Product of the Year (POTY). The items were chosen by 40,000 American shoppers in a nationally representative survey conducted by consumer and retail research firm Kantar. Among the 2021 winners, the consumables, health and beauty care, and home care categories led the way with 13 products apiece, followed by pet care with two winners. Of the winning companies, discount grocer Aldi and FMCG giant Procter & Gamble (P&G) each took home seven Product of the Year Awards, followed by Henkel and Bayer Consumer Health, each with three. CVS Health was the only other retailer to garner a POTY award. The winning products, announced each February, get the right to use the Product of the Year logo in marketing communications for two years. Product of the Year USA noted that its red seal is proven to boost product sales, distribution and awareness. Product of the Year USA The 41 winning items in the 2021 Product of the Year Awards can use the POTY red seal in marketing communications for two years. The 2021 Product of the Year Award winners, by category, were the following: CONSUMABLES Alcoholic Beverage: Uptown Cocktails (BuzzBallz/Southern Champion) Breakfast: Aldi Aunt Maple’s Protein Pancake Mix (Aldi) Cheese: Aldi Emporium Selection 1,000 Day Gouda & 4 Year Cheddar (Aldi) Chips: Aldi Simply Nature Bean Chips (Aldi) Coffee: Aldi Friendly Farms Almondmilk Coffee Creamer (Aldi) Condiment: Aldi Stonemill Everything Bagel Seasoning (Aldi) Convenience Meal: Del Monte Veggieful Pocket Pies (Del Monte Foods) Cookie: Keebler Chips Deluxe Original (Ferrara) Fruit: Del Monte Deluxe Gold Pineapple (Del Monte Foods) Functional Beverage: Live Better Apple Cider Vinegar with Ginger & Turmeric (CVS Health) Healthy Snack: Aldi Clancy’s White Cheddar Cheese Popcorn (Aldi) Sports Nutrition: Powerade Ultra (Coca-Cola) Yogurt: Aldi Specially Selected Indulgent Greek Yogurt (Aldi) HEALTH & BEAUTY CARE CBD Ingestible: cbdMD CBD Gummie (cbdMD) CBD Personal Care: Medterra Pain Cream + CBD (Medterra) Children's Wellness: Mucinex Children’s FreeFrom (RB Health) Electric Toothbrush: hum by Colgate Smart Rechargeable Electric Toothbrush (Colgate-Palmolive) Eye Care: Systane Hydration PF (Alcon Laboratories) Foot Care: Lotrimin Daily Prevention (Bayer Consumer Health) Hair Color: Schwarzkopf Color Boost (Henkel) Hair Styling: Remington Pro 1” Multi-Styler with Twist & Curl Technology (Spectrum Brands) Oral Care: Crest Whitening Emulsions with Wand Applicator (P&G) Oral Hygiene: Colgate Keep Replaceable Head Manual Toothbrush (Colgate-Palmolive) Pain Relief: AleveX (Bayer Consumer Health) Vitamins, Minerals & Supplements: Patchology Little Helpers (Rare Beauty Brands) HOME CARE Car Care: Rain-X Glass Water-Repellent (ITW) Dish Care: Dawn Powerwash Dish Spray (P&G) Dryer Sheet: Bounce Pet Hair and Lint Guard Mega Dryer Sheets (P&G) Green Laundry: All Free & Clear Pure (Henkel) Hard Surface Cleaning: Microban 24 Sanitizing Spray (P&G) Health & Wellness: Claritin Cool Mint Chewables (Bayer Consumer Health) Home Improvement: 3M CLAW Drywall Picture Hanger (3M) Laundry Enhancer: Snuggle SuperCare Scent Booster (Henkel ) Laundry Pacs: Tide Hygienic Clean Heavy Duty 10X Power PODS (P&G) Liquid Fabric Conditioner: Downy Intense Scent + Freshness, Spring Rush (P&G) Liquid Laundry: Tide Hygienic Clean Free & Gentle Liquid Heavy Duty (P&G) Natural Cleaning System: H2O e3 Cleaning System (Thane Direct) Outdoor Cleaning: Carbona Pro Care Oxy Powered Outdoor Cleaner (Delta Carbona) Tableware: Hefty ECOSAVE (Reynolds Consumer Products) PET CARE Cat Care: Pro Plan LiveClear (Purina) CBD Pet: Paw CBD 300 mg Peanut-Butter Hard Chews (cbdMD) With the escalation of online shopping during the COVID-19 pandemic, and fewer product sampling opportunities, the Product of the Year red seal helps consumers “quickly cut through the clutter to save time and money,” according to POTY USA. “For all the obvious reasons, shoppers are spending less time in the supermarket than ever, but still crave new and innovative products to light up these difficult times. Because of this, we are more excited than ever to announce the 2021 Product of the Year winners and help shoppers find that ‘great new product’ when it matters most, however they do their shopping this year,” Mike Nolan, global CEO of Product of the Year Management, said in a statement. “What makes Product of the Year so trusted is our unique process, which gives shoppers the confidence that each product with our iconic red logo is backed by 40,000 Americans. That’s a powerful advantage for our 2021 winners, as a Product of the Year Award positions them as the innovative leader in their category.” For over 30 years globally and 13 years in the USA, Product of the Year has recognized products that demonstrate innovation in function, design, packaging and/or ingredients. This year’s awards were presented in a Virtual Awards Show, hosted by “Saturday Day Night Live” alumni Rachel Dratch and Ana Gasteyer on DailyMail.com. See here for more: https://www.supermarketnews.com/consumer-trends/aldi-among-top-winners-2021-product-year-awards
- Denmark: Flying Tiger gets new owner
Danish Variety Discount Retail Chain Flying Tiger Copenhagen has 900 stores in 27 countries spread over shopping streets and shopping malls. The Danish store chain Flying Tiger Copenhagen gets a new owner. The Danish investment company Treville, which was founded by former partners in the private equity fund Axcel, takes over the ownership together with Flying Tiger's management. This is confirmed by Martin Jermiin, CEO of Zebra A / S, the company behind Flying Tiger Copenhagen, to the Danish financial newspaper Finans. Since 2012, the private equity fund EQT has been the main shareholder and owned the retail company together with its founder, Lennart Lajboschitz. EQT has made no secret of the fact that the goal has long been to get out of Zebra, which has had several years of million deficits. On Wednesday morning, a sales agreement was entered into so that the investment company Treville takes over the ownership. It happens together with the management of Flying Tiger, which has CEO Martin Jermiin in front. Behind Treville are Casper Lykke Pedersen, Lars Thomassen and Nikolaj Vejlsgaard, all three of whom have previously been part of Axcel. “We are pleased to have the new owners on board and the agreement that has been reached. It means, among other things, that the management continues. We can now continue to invest in the initiatives that have been launched. At the same time, we are moving forward with consolidating and simplifying our setup for the future, "says Martin Jermiin. The Company Flying Tiger Copenhagen currently has just over 900 stores in 27 countries. In the last few years, the management has been engaged in a major clean-up work, which will create a more efficient business and reverse the development with a deficit on the bottom line. In 2019, there was a deficit of DKK 224 million (US$ 36.5mio). DKK against a deficit of 541 million (US$ 88mio) the year before. 2019 also resulted in a significantly better operating profit than the year before. The strategy means i.a. greater focus on growth in the existing stores - rather than, as before, constantly focusing on opening new ones. In 2020, 13 out of 70 stores in Denmark were thus closed, and Flying Tiger has recently chosen to withdraw from the USA, where the chain has operated 13 stores. Flying Tiger boss: With new owners, we are strengthened At the same time, the company is considering the future in Germany, where the chain has approx. 40 stores. The goal is not, as in the US, to shut down the business, but instead to find a new construction. Preferably with a partner who will take over the stores. At the same time, Flying Tiger opened online shopping a year ago, and this particular sales channel has shown great growth through 2020, according to the CEO. Also with sales of cheap products that Flying Tiger is known for. Martin Jermiin will not yet specify figures for the development in the past year, but makes no secret of the fact that the pandemic, with restrictions and forced closures, has cost the company dearly. "The concept also lasts in a time of crisis. We have a strong brand and strength in the major markets. Of course, this is not a current strong situation with more than half of the stores closed right now. Corona really hurts us as a business, but as a concept we are coming back strongly where it reopens. Last year, when we reopened, we saw that customers quickly returned to the stores for our concept,” says Martin Jermiin. See here for more: https://finans.dk/erhverv/ECE12750472/kapitalfond-slipper-ud-af-flying-tiger-nye-ejere-tager-over/?ctxref=ext
- USA: Aldi US is expanding and is further leaving Lidl US behind
Discount Retail Chain Aldi USA (privately owned by Aldi Süd) opens 100 new stores and expands its cooperation with the Instacart delivery service. German discounters are popular with the US customers. Aldi Süd continues its successful expansion in the USA. Strengthened by the good business during the COVID pandemic, the German discounter plans to open a total of 100 new stores this year, mainly in Arizona, California, Florida and the northeastern United States. In 2022, Aldi wants to rise to number three behind Kroger and Walmart, measured by the number of supermarkets. With this, Aldi also leaves its German discount archrival competitor Lidl in the USA behind. Lidl entered the US market in 2017 with great ambitions, but had slowed its growth in the meantime and has only been pushing the pace again for a year. So far, Lidl has mainly concentrated on the east coast, while Aldi is already present in three quarters of the states. Lidl wants to increase the number of its supermarkets by 50 to 150 by the end of 2021, but Aldi already has more than 2000. Aldi has known the US market for decades, as it has been there since 1976. By the end of 2022, the number of supermarkets is expected to rise to 2,500 in 37 states. In addition, Aldi has opened another distribution center and regional headquarters in Loxley, Alabama. This should support the expansion of the network in Alabama and Florida. From there, delivery to Louisiana is also planned for the first time. The southern states of the USA in particular have recently registered strong population increases, which have accelerated with the pandemic. Many people who can work from home have moved to warmer areas, where the cost of living is lower than in cities like New York or San Francisco. "We are incredibly proud to continue to grow in all aspects of our business, from opening new stores to strengthening our e-commerce offerings," said Aldi US CEO Jason Hart. In fact, Aldi also wants to further expand the “curbside pickup” in the USA, which is popular because of Corona, where customers can order online and then pick up their shopping bags on the sidewalk without having to enter the store. More than half of the supermarkets should offer this service by the end of the year. German discounters are well received by US customers Aldi announced that the cooperation with the online shopping service Instacart is to be expanded to almost all stores. On the Aldi website, customers can instruct Instacart to do their shopping in the supermarkets. Instacart buyers bring the products to their homes. However, this often involves significant fees that go to Instacart and the buyers themselves. There is currently no online service in which the products are delivered directly from the warehouse. Given the low margins in grocery retailing, this business is often not worth it. This is also shown by the difficulties that even Amazon has with the supermarket chain Wholefoods. With the success of Aldi and Lidl in the USA, the triumphant advance of the discounter concept with its own, inexpensive house brands continues. For a long time, most US consumers preferred to reach for well-known brands such as Kraft or Pampers. But in recent years, belief in the big brands has weakened. Here, too, the awareness is slowly gaining ground that house brands can also offer quality. Both Aldi and Lidl, like the competition, have recently benefited from the pandemic because people cook more at home. According to the US Department of Commerce, supermarket sales increased by almost eight percent last year. With their low prices, the discounters also appeal to many people who have lost their jobs because of the Covid pandemic and who have to pay more attention to their money. Not only Aldi Süd and Lidl are on the move in North America: Aldi Nord has also been present on the US market since it took over the upscale discounter Trader Joe’s in 1979. Trader Joe’s has a loyal fan base and operates 530 supermarkets across the country. Trader Joe’s opened twelve new stores since June. More are planned for this year. The German discounters are quite popular with customers. In a ranking by the data service Dunnhumby, Aldi ranks fifth and Trader Joe’s even ranks third. For comparison: the retail giant Walmart has to be content with 14th place. See here for more: https://app.handelsblatt.com/unternehmen/handel-konsumgueter/lebensmittel-discounter-aldi-sued-expandiert-in-den-usa-und-laesst-lidl-weiter-hinter-sich/26906776.html?ticket=ST-728485-wF7lNf05UeWu1d6v577Z-ap5
- Poland: Aldi will open 45 stores and employ 600 employees in 2021
Discount Retail Chain ALDI Poland (privately owned) is accelerating the pace of development and is planning further openings throughout Poland. By the end of 2021, the chain's stores will be available in most provinces in Poland. ALDI is planning to open around 45 stores this year and invest in green energy. The chain plans to employ about 600 people. The chain currently has 168 stores all over Poland. In 2021, ALDI will accelerate the pace of development compared to last year and will open about 45 new stores with a total area comparable to almost 9 football fields, i.e. 63,000 sq m. The chain places great emphasis on the Pomeranian province, where it has been very popular with customers since last year's openings. ALDI also focuses on further development in the Mazowieckie and Wielkopolskie province, stores will also appear in Lubelskie, Warmińsko-Mazurskie and Podlaskie. Thanks to expansion plans, the brand will be available to customers in almost every province by the end of 2021. The chain is also planning numerous modernizations and extensions of the existing facilities in order to adapt to standards and improve the comfort of shopping. Due to the development, the demand for employees will increase. So far, the brand has been present mainly in the cities of southern, central and western Poland, where it has been well received by customers. Since the beginning of 2020, the network has been expanding practically throughout Poland. By the end of December, 24 new ALDI stores had opened. All prepared in accordance with the brand's new visual concept. "We will successively increase the number of opened stores to around 50 per year. The past decade has created an excellent foundation for this step, therefore we are accelerating the pace of development. Later this year, we want to be available to customers in every province to increase brand recognition. We know that location is the main factor in choosing a store for everyday shopping," sums up Tomasz Gawlik, director of the Real Estate and Expansion Area of the ALDI chain in Poland. ALDI announces that it will use more green energy by the end of 2021. The number of stores equipped with photovoltaic installations will increase. Already now, thanks to the implemented solutions, 52,400MWh of electricity is generated on the roofs of the chain stores in the entire ALDI Nord. By the end of 2021, the entire ALDI Nord will also reduce its greenhouse gas emissions by 40% compared to 2015. See here for more: https://www.dlahandlu.pl/wiadomosci/,95780.html
- Norway: Grocery purchases increased to US$3.6 billion. Norgesgruppen is the big winner
Discount Retail Chain Norgesgruppen (owner of discounter KIWI) is the big grocery retail winner in Norway after 2020. It was obvious that the grocery industry would experience strong growth in 2020, but now the figures show exactly how much more we spent on butter, cheese and bread in Norwegian grocery stores during the pandemic's first year: NOK 30.5 billion (US$3.6Bn), a growth of 17.1% compared to 2019. The growth alone corresponds to NOK 12,322 (US$1,500) per household in the past year. The big jump is due both to the fact that the border is closed for trade abroad, but also to the fact that many Norwegians have more money on their books as interest rates are low and money they otherwise spent on eating out or traveling has been spent on other things. The winners and losers Although the grocery industry as a whole made more money this year, it has still been a battle to gain market share. Here there is only one winner, according to Nielsen. Kiwi's owner Norgegruppen is the only grocery constellation that increases its market share last year at the expense of its discount competitors in Coop, Rema and Bunnpris. The reason is that the discounter chain Kiwi is growing by 0.8% points at the same time as the rest of the retail chains Norgesgruppen owns do not weaken as much as the competitors. At the same time, Coop Extra is growing the most (+0.9% points) and Rema is, despite flat development, still the largest single chain with 23.2% of the market. Norgesgruppen increases its market share by 0.36% points to 44.09% of the total market. Rema is reasonably flat, and Coop is down 0.14% points. This is also the development as it has been in recent years. The Nielsen figures do not give the overall picture of who sells Norwegian groceries. In the wide product range category, discounter Europris and variety discounter Normal have had a very good year, and the former has seen much of the growth come from groceries. Ecommerce discounter Kolonial.no has also had a good year, almost doubling its turnover from the previous year. For both soft drinks, beer and tobacco are among the lures that make Norwegians cross the border, and which are picked up in what are now closed duty-free shops. The increase in sales of these products has been so massive that the Storting decided to investigate cross-border trade in a separate report to the Storting where concrete measures are to be presented to overcome the border leak. The development has also had immediate consequences in that the government and coalition parties lowered the alcohol tax for the first time in almost 20 years. See here for more: https://e24.no/naeringsliv/i/oA7xLa/dagligvarekjoep-oekte-med-305-milliarder-norgesgruppen-er-den-store-vinneren











