The largest discount retail chain in the world Walmart is testing food delivery in smart cool boxes in front of customers' front doors. The Homevalet-Box has three temperature zones for this. Walmart, also the largest operator of supermarkets in the USA, is constantly testing innovative ways of supplying and operating its stores. For example, a fully autonomous delivery of goods is to be tried out for the first time in a supermarket in the US state of Arkansas in the coming months. Walmart has also experimented with robots and delivery drones. Cool box for frozen and fresh food. The group relies on the smart cool box Homevalet from the start-up of the same name. Based on an IoT (Internet of Things) system, the cool box has three different temperature ranges. This should enable both frozen goods and (chilled) fresh food to be cooled according to their requirements. After a successful test run, the box delivery should initially benefit users of the Walmart Plus subscription service. Walmart is already delivering groceries free of charge to Walmart Plus subscribers. The service costs US$ 98 a year or US$ 12.95 a month, according to CNBC. The food delivery service launched in 2018 has grown enormously in importance in recent months due to the corona pandemic. Since last year, Walmart has been testing the delivery of food directly to customers' refrigerators as part of a program known as in-home delivery. Walmart is thinking out loud about 24/7 delivery For many customers, however, a cool box on the doorstep might be a better alternative. After all, the delivery service does not need to enter the apartment. Instead, the box is opened by the delivery service using a device and closed again after the groceries have been stored. According to Walmart, the lockable cool boxes even offer the option for a full delivery, but that is not currently planned. See here for more: https://www.xing-news.com/reader/news/articles/3739146?cce=em5e0cbb4d.%3Ao2S6zvWkrvuOCrbDXZkjAN&link_position=digest&newsletter_id=71037&toolbar=true&xng_share_origin=email

Discount Retail Chain D-Mart chain (owned by Avenue Supermarts Ltd) crossed the ₹2 trillion (US$27.2 Billion) market valuation after the stock surged nearly 20% in the last three weeks. The stock has gained in 11 out of the last 13 sessions, tracking gains in the broader market. Since 17 December, discounter D-Mart climbed 20%, adding nearly ₹35,000 crore (US$) to its market value. Domestic equities rose in 21 out of the 23 sessions having gained nearly 8.52%. Investors have rushed to buy the stock amid hopes of a revival of activity soon after India authorized emergency use of Serum and Bharat Biotech vaccine. D-Mart continues to offer the highest discount across most of the categories, in turn gaining loyalty, a key factor for driving footfall. The firm targets lower-middle, middle, and aspiring upper-middle-income consumers for whom value for money plays an important role. The firm faces the risk of greater competition from JioMart, Flipkart and Amazon, but brokerage firm Axis Securities believes that the firm is well placed in the domestic retail industry given its strong execution capabilities, disciplined low prices and low costs strategy, lower cost of operation, and a streamlined distribution network, which help D-Mart to penetrate newer markets. D-Mart’s Q2 earnings indicated that its business has been improving month-on-month with the easing of lockdown curbs following the outbreak. It also said that the sales at older stores recovered to 87.5%. Few stores are operating for longer hours to ensure social distancing and serve customers better. The company has 220 stores and 225 D-Mart Ready stores as of Q2FY21 and analysts expect that it will add 100 stores by FY23E with 80% of them in the existing clusters. The stock trades at 41 times multiple EV/Ebitda, which analysts say is attractive given the strong revenue growth and large headroom for expansion. EV is enterprise value and Ebitda is earnings before interest, tax, depreciation and amortization. See here for more: https://www.livemint.com/market/stock-market-news/dmart-crosses-rs-2-trln-in-market-cap-11609905386709.html

Discount Retail Chain Lidl Lithuania (owned by the German Schwarz Gruppe) constantly cooperates closely with its partners, reviews and improves the composition of its private label branded products in order to ensure the highest possible quality of products that reach customers. Nematekas, one of the largest meat processing companies in Lithuania, which also produces part of the products of the private Lidl brand Pikok, has responsibly undertaken this mission in 2020, Lidl and Nemateko added as many as 8 Lidl and Nemateko shelves to improve Pikok meat products. See here for more on private label development support. Stasys Gineitis, the head of Lidl Lithuania's meat range, says that the retail chain constantly fulfills its international obligations and promises to its customers for the continuous improvement of product quality. These include reducing salt and sugar and removing or replacing unnecessary food additives with more natural alternatives. "When improving the composition of food products, we try to give priority to those products that are consumed on a daily basis. Customers make a significant impact in the development of our private label products, we pay special attention to the wishes of our customers and take into account trends in society. Therefore, after analyzing the Lithuanian Pikok meat products in the range, we provide suggestions and recommendations to our partners, according to which we could improve their quality together,” says S. Gineitis. We strive to improve our products constantly Rūta Vaicekauskaitė, Head of New Product Development and Implementation at Nematekas, says that the company makes every effort to ensure the quality of all its products, but recently there is a noticeable and growing need for new products with improved composition. “We are always looking for ways to improve our products and focus on finding more natural additives as alternatives to chemical additives. At the same time, of course, we strive to ensure that neither the taste nor the functional properties of the products are affected, ”says the interlocutor. The long path of improvement ended successfully According to the representative of Lidl Lithuania, the company's partners willingly accepted Lidl's initiatives and decided to work intensively. Product development is a long process and the process from idea to product with a modified composition takes more than one month. "Initially, we consulted with product suppliers, discussed alternatives in formulations, and their food technologists prepared new samples. We responsibly checked these offers, organized both internal and consumer tastings, because we wanted to make sure that the usual taste and appearance characteristics of the customers would remain the same. Finally, most of the products in the Pikok range have been able to remove unnecessary dyes, maintaining the visual quality of the product and replacing artificial flavors with natural ones, while preserving the good taste of the products,” says S. Gineitis. The artificial coloring was replaced by natural beet dyes according to R. Vaicekauskaitė, after receiving a request from Lidl Lithuania to improve the composition of a part of the range, Nematekas willingly undertook this task and based on the accumulated experience thoroughly improved the composition of Pikok products. As the company has been cooperating with the discounter for more than a year, such a request was not a surprise. A total of 8 products of the category range were improved Baroni cooked in the highest quality sausage, premium salami in cold smoked sausage, sliced, cooked Hot Dog sausages and artificial pork in the cooked premium pork sausage were replaced or removed. Also, cold-smoked sliced ​​skiland, boiled pork and chicken sausage with a mesh and premium dried ham sausage are free of carmine dye. They have been replaced with natural dyes, such as beet dyes, or removed altogether. Finally, the highest quality sliced ​​dried sausage is not only free of carmine dye, it has also been reduced in salt content. "We are glad that we have managed to maintain the same taste, smell and appearance of the products, and this process, which required a lot of effort, was successful, and the results can already be seen by the people of the country," says Nematekas, Head of New Product Development. Production processes are aligned to the smallest detail. As Nematekas operates in accordance with current European regulations and has the highest rating of the IFS standard, which reflects strict control of all production processes. According to her, the company also has a Navision process management system, which helps to further align the company's internal kitchen. It records and manages all production processes, from the acceptance of raw materials, spices, additives and packaging materials to the placing of products on the market.“ During production, our technologists and craftsmen evaluate the appearance, consistency, smell and taste of the products, and all technological processes take place according to the computer programs created for each product group. Then we label and package the products according to all regulations, and the products in the finished product warehouse are inspected by measuring their gas, weight and internal temperature,” says R. Vaicekauskaitė. Careful care does not bypass any product Nematekas The head of new product development and implementation notes that Lidl's Pikok range of products, like all of the company's products, are set aside for reference samples in order to verify that they are properly shelf life.“ In addition, we have selected a team of specialists who taste the products from all the batches produced on the respective day. In this way, we can guarantee that only products suitable for consumption will be delivered to Lidl stores. Also, in order to evaluate the composition of the products and their compliance with the established standards, the products are subjected to food testing with the FoodScan food analyzer. Finally, we also perform research in external laboratories, from raw materials, spices, additives, air, water and ice tests to finished products, washes from inspections of employees or equipment,” says R. Vaicekauskaitė. Special attention is paid to the quality of all goods in the discounter, S. Gineitis emphasizes that Lidl Lithuania applies a consistent product quality assurance system to all products offered in the retail chain and strictly takes care of their quality from negotiations with suppliers on possible cooperation to daily sales." Our quality regulations apply not only to Pikok products, but also to other Lidl private brands, we require our partners to regularly inspect products, and in parallel we perform both laboratory analytical and sensory tests, and initiate process inspections at suppliers' production sites." says the head of Lidl Lithuania's meat assortment. See here for more: https://imone.lidl.lt/media-centras/pranesimai-ziniasklaidai/2021/lidl-ir-nemateko-partnerystes-rezultatai-patobulinti-pikok-mesos-gaminiai

Russian variety discount retailer Fix Price (owned by ) expands its assortment and adds a price category, 249 rubles (US$3.40). The decision to add another price segment is related to the expansion of the assortment with new products, which were not suitable for the sale of the previously existing fixed prices of the chain. The new price made it possible to replenish the assortment with goods of well-known brands, as well as goods in updated profitable packages in almost all product categories. To date, the Fix Price assortment includes about 1,800 SKUs, such as household goods, cosmetics, and food from foreign and Russian manufacturers in the following price categories: 50, 55, 77, 99, 149, 199 and 249 rubles, with about 80 percent of goods priced under 100 rubles ($1.40) Further the Russian variety discounter has said it is considering listing on stock exchanges in London and Moscow, as the group seeks to capitalize on robust growth spurred by rising demand for cheap goods. The initial public offering (IPO), which could value the company at more $6 billion, would aim to raise at least $1 billion, and would become the biggest listing by a Russian company in London since 2017. The stock market listing of global depositary receipts is planned for March, with a secondary listing on the Moscow Exchange. The deal will be jointly coordinated by BofA Securities, JPMorgan, Citigroup, Morgan Stanley, and VTB Capital. Fix Price, whose business model is similar to that of variety store chain Dollar General, operates around 4,250 walk-in stores in Russia, Belarus, Kazakhstan, Kyrgyzstan, Latvia and Georgia. The company, launched back in 2007 by businessmen Sergey Lomakin and Artem Khachatryan, also sells low-cost goods online. The Fix Price founders, plus minority investors Goldman Sachs and Marathon Group, will reportedly sell shares in the IPO. Lomakin and Khachatryan are expected to retain control of the company. In 2020, the company’s revenue amounted to 190 billion rubles ($2.6 billion), marking a 33-percent growth, along with double-digit EBITDA (earnings before interest, taxes, depreciation, and amortization) margins, according to CEO Dmitry Kirsanov. Meanwhile, its like-for-like sales have grown at double-digit rates every quarter for 16 consecutive quarters. “With a presence in 78 of Russia’s 85 regions, as well as neighboring countries, and a strong track record of results in our home market, Fix Price is well positioned to pursue expansion both inside and outside of Russia,” Kirsanov said, as cited by Reuters. The Covid-19 pandemic boosted the customer traffic of the already popular chain, since the spending power of many Russians has dropped significantly during the crisis. See here for more: https://www.retail.ru/news/v-seti-magazinov-fix-price-poyavilsya-novyy-tsenovoy-segment-9-fevralya-2021-201776/

Variety Discount Retail Chain Five Below (lised FRA: 6F1) isn’t letting the COVID pandemic stop its national expansion. The extreme-value tween and teen chain remains one of the few specialty retailers that has not pulled in the reins on brick-and-mortar growth. Five Below plans to open 170 to 180 stores across the country during the next nine months. The company currently operates some 1,051 locations nationwide. Five Below’s net sales for holiday 2020 jumped 21.1% to $722.3 million from $596.6 million in the year-ago period. Comparable sales increased by 10.1%. “We are very pleased with our holiday sales performance, which surpassed our expectations,” said Joel Anderson, CEO, Five Below. “These strong results illustrate the broad appeal of our Wow offering at amazing values as well as the inherent flexibility of our model and merchandise offering.” The holiday mix included Five Below’s extreme-value products along with its expanded offering (select items priced above the chain’s signature $5.00 cutoff), all of which resonated with customers, Anderson said. For the fourth-quarter, Five Below provided guidance for sales of $835 million to $840 million, comp sales growth of 11% and earnings per share of $2.08 to $2.12. See here for more: https://chainstoreage.com/five-below-open-170-180-stores-2021

Discount Retail Chain Lidl Spain (owned by the German Schwarz Gruppe) has acquired a landplot of about 150,000 m2 in the Madrid town of Parla to build a new warehouse and thereby consolidate the Community of Madrid as its main logistics node at the national level. The project will involve an investment of € 85 million (US$103million) and is part of the group's commitment to continue growing steadily in Spain and, especially, in the central area. Thus, Lidl will intensify its logistics activity in a region where today it already has two warehouses in Alcalá de Henares and Pinto, with a surface area of ​​more than 90,000 m2. The Alcalá de Henares center was inaugurated in 2016 and with an initial surface of 45,000 m2. Two years later, it expanded these facilities with the start-up of a silo for automated merchandise management. After a total investment of more than € 92 million (US$111million), the platform currently has a surface area of ​​61,000 m2, a storage capacity of 71,000 pallets, and serves Lidl stores in the Community of Madrid and other areas of the center of the country. In fact, the Alcalá de Henares platform is, today, one of the largest, technologically advanced and sustainable logistics centers of the Lidl Group in the world. In addition, the chain also has a logistics warehouse in Pinto, from which it currently manages a significant part of its ecommerce business for the online sale of its own private label brands in&out articles. The center has an area of ​​30,000 m2. Not surprisingly, in recent years the Community of Madrid has become one of the main focuses of Lidl's expansion in the country, where it already has a network of more than 70 stores. During the 2020 financial year, eight stores were launched in this community, including its 600 store in Spain (in Tres Cantos, last February) and a new point of sale in the emblematic Tetuán Market. In total, the chain invested more than € 46 million (US$56million) in these projects and created more than 130 jobs. According to the regional director of expansion of Lidl in Spain. Other logistics developments Outside Madrid, the expansion of the discount chain also continues, also accompanied by a strengthening of its logistics structure. Thus, in these first months of the year, Lidl will launch the new platform that it has rented in Sant Estreve Sesrovires (Barcelona), which will have a total area of ​​27,500 m2, an interior height of up to 12 m and 32 loading docks. From this center, which will be managed by the logistics operator Naeko, agri-food products will be distributed both to Spanish supermarkets and to other stores that the group has in Europe. Along with this project in Barcelona, ​​Lidl is also immersed in the construction of a new warehouse in Nanclares de la Oca (Álava) and, soon, another in Escúzar (Granada), where it has acquired a plot of 130,000 m2. In Nanclares de la Oca it will build what will be its reference logistics warehouse in northern Spain, built on a plot of more than 111,000 m2 and which could be operational by the end of this year. Further, the discount chain launched a new logistics center in Cheste (Valencia) at the end of 2019 and in mid-2020 it opened another in Agüimes (Gran Canaria). With an area of ​​51,000 m2, Cheste is one of the group's largest warehouses, not only in Spain. Its entry into operation, meant the transfer of the activity that until then it centralized in its warehouse in Ribarroja de Turia, located a few kilometers away. For its part, the Agüimes warehouse is the company's second in the Canary Islands, it has more than 25,000 m² of surface and is allowing the development of the discount chain in the archipelago to be promoted. In total, Lidl currently has a network of 15 warehouses in Spain with a combined surface area of ​​almost 470,000 m2 of useful surface. See here for more: https://www.alimarket.es/logistica/noticia/327661/lidl-construira-un-nuevo-almacen-en-parla-para-impulsar-su-expansion-en-la-zona-centro?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_logistica&vgo_ee=rQclDDn6lNlCWvojf3E%2FQsWKeUhSlyolBswFv8I75kQGzVbFiI1qt8f6eSgQfuuT

Russian largest store operating retailer Magnit (LSE: MGNT) opened seven more 'Моя цена' (My Price) discount stores. The stores were launched in Kazan (Republic of Tatarstan), Ruzaevka (Republic of Mordovia), Kuznetsk (Penza region), pos. Upper reaches (Oryol region), Nevinnomyssk (Stavropol Territory), Semenov (Nizhny Novgorod region) and Olonets (Republic of Karelia). The total number of discount store adds to 23 stores. All discounters were opened on the basis of a convenience store. The total area of ​​retail outlets is 150-350 sq. meters. The assortment includes about 1,700 SKUs. The emphasis is on goods of the first price segment and own private label brands (more than 15% of the total range), as well as on products of daily demand in economical packaging. Discounters distinguish from supermarkets by simple zoning of retail space and a basic set of equipment. At the same time, customer service remains at a high level and meets the requirements of a modern store. Recall that the first three stores of the new pilot format appeared in July 2020 in the cities of Samara, Kamyshin, Volgograd Region and the village. Old Kulatka of the Ulyanovsk region. The 'My Price' discount chain aims at price-sensitive consumers who make frequent small purchases of a traditional range of goods or purchase products for future use to stock. Later, stores were opened in Voronezh, Lipetsk, Samara, Krasnodar Territory, Kabardino-Balkaria, Tula, Chelyabinsk and Rostov Regions, as well as in Altai Territory. Magnit will continue to pilot the discounter format and will open several dozen new stores by the end of 2021 in order to study in detail the Russian customer response and make a decision on scaling. See here for more: https://www.retail.ru/news/magnit-otkryl-eshche-sem-diskaunterov-15-fevralya-2021-201957/

Discount Retail Chain Aldi US (privately owned) continues its national expansion in 2021 with 100 new stores as the retailer plans to enter new markets, expand its 26th regional headquarters and distribution center and expand its online retail offering. For the 100 new locations in 2021, the focus will be on Arizona, California, Florida and the Northeast, according to a press release. As part of its ongoing mission to provide customers with convenience in how and when they shop, Aldi will continue to expand its online offering in 2021. The company will add the Curbside grocery pickup service to 500 additional stores by the end of the year, bringing the total number of pickup locations to more than 1,200. Aldi will also continue to offer grocery deliveries through Instacart in almost all of its stores. On February 10, the company paved the way for a new regional headquarters and distribution center in Loxley, Alabama that will support the company's expansion in the Gulf Coast region. The new Loxley distribution center will feature some sustainable building elements, such as solar panels, LED lighting and an environmentally friendly cooling system. The facility will also create an additional 200 jobs when it opens next year. See here for more: https://www.fruchtportal.de/artikel/aldi-usa-expandiert-2021-mit-100-neuen-lden/048056?i=2ad5ad0b

Dutch value-for-money retail chain DEEN selling all its stores to three competitors, after 87 years in business. 39 stores will be converted into market leading Albert Heijn stores, 22 stores will be owned by soft discounter Vomar and 19 stores will be value-for-money DekaMarkt stores.. Deen says in the announcement that the investments in e-commerce that are needed to survive in the coming years would demand too much from the company. "The size of the necessary investments made the family decide, in close consultation with the management, to make a different strategic choice and to sell the company", it says. The chain cannot communicate how much has been paid. It is not yet entirely clear what the takeover means for the staff. This still has to be negotiated with the unions. What is certain is that all supermarket employees will keep their jobs and possibly be transferred once the takeover is complete. Leendert van Eck, who has been CEO of the company since 2016, thinks the decision is a logical step. "We have built up a great company and thanks to the hard work of our employees and our loyal customer base, we can look back on wonderful years. To be future-proof, considerable financial efforts are required, but the family has made a different choice." The buyers see the acquisition as an expansion opportunity. Albert Heijn CEO Marit van Egmond speaks of "an important strategic step and a unique enrichment of the range of shops in North Holland", Vomar sees it as a unique opportunity to strengthen its position in the market and DekaMarkt points out the many similarities between Deen and DekaMarkt stores, "such as the focus on fresh products". The transaction should be completed in the second half of 2021, after consultation with the trade unions and advice from the relevant works councils. See here for more: https://www.nu.nl/economie/6116684/deen-supermarkten-verkocht-aan-albert-heijn-vomar-en-dekamarkt.html

Discount Retail Chain Lidl Belgium (owned by the German Schwarz Gruppe) is continuing its expansion in Belgium and wants to open 23 new stores in Belgium by the end of February 2022. In February alone, Lidl opens 6 new stores in Zottegem, Virton, Retie, Beaumont, Aubange and Tongeren. Later in the year, Lidl will open new supermarkets in Sint-Genesius-Rode, Wemmel, Tournai, Bouffioulx, Morlanwez (demolition and reconstruction) and in Dilsen-Stokkem, Willebroek, Couvin, Jumet, Marcinelle (move within the same city). For example, the smart discounter wants to open 23 stores in Belgium by the end of February 2022, which will immediately generate 500 extra jobs in our country. These include 4 new supermarkets in Mechelen and Sint-Niklaas, cities where Lidl was not yet present. In 9 other cities, especially in Wallonia and Brussels, Lidl is renovating the existing stores and 10 older stores are relocated. “These projects are part of Lidl's expansion strategy to open larger sales outlets with more light. In this way, the range of 1,900 products comes into their own. The supermarket chain also notices that Belgians like to be able to shop close to home, and is therefore responding to this,” says Isabelle Colbrandt, Lidl spokeswoman. "We pay extra attention to local products. The Belgian consumer appreciates this. Half of our fruit and vegetables and 90% of our meat come from Belgium. 100% of our milk and eggs come from our country." See here for more: https://em.ascentialedge.com/I0g0gMW053sYpL3s0i0BC00

Discount Retail Chain Aldi Süd (privately owned) has achieved the goal of offering regional baked goods in 1,000 stores. In Freiberg am Neckar, ALDI SÜD celebrated a milestone at the end of last year. The 1,000th store of the discounter is located in the town near Stuttgart, where the range of baked goods is supplemented with products from the region. In this case from the Waiblingen bakery Schöllkopf, a family business that produces in the centuries-old parent company. Schöllkopf supplies 21 ALDI SÜD stores in the area daily with a selection of its baked goods, including the "Waiblinger Briegel", a typical Swabian pastry with an aromatic salt and caraway crust. Premium quality selection The range of regional baked goods was again significantly expanded. The discounter thus supplements its range of baked goods with regional products and primarily addresses customers who want to eat consciously and with fresh food from their area. There are now 44 partnerships with bakeries that supply more than 1,000 of the total of around 1,940 branches. The scope and composition of the regional range vary depending on the size of the store and the agreement with the respective baker. They directly deliver the fresh breads to the Aldi stores. This includes convenience items such as sweet or savory snacks, but also rustic breads and refined rolls. It is crucial that the products are of high quality, relevant for local customers and always fresh. The goods are offered in the "MEINE BACKWELT" display or in an additional bakery goods counter next to the baking machine and are particularly marked. Support nutrition trends The decisive factor for the expansion of the range was the customer's desire for more regionality. "The regional baker is very important to many people," says Svenja Özen, Corporate Buying Director at ALDI SÜD. "In addition, it is not just since the corona pandemic that our customers have been placing more value on healthy, high-quality and sustainable nutrition. Regional products that reach our branches over short distances are becoming increasingly important. We support this trend. Besides fruit and vegetables, we also include other foods from the area in our range in as many stores as possible. " Advantage for regional businesses The regional range of baked goods is flexible and can also be adapted to customer requirements according to the season. Specialized employees are looking for regional cooperation partners and products that are suitable for sale in the surrounding branches throughout the ALDI SÜD area. Ultimately, the partner companies also benefit from this. The bakeries gain an additional sales channel and a variety of marketing measures in the branches draw attention to their products, for example on posters or price strips with the bakery's logo. "We have been working with ALDI SÜD since August 2020 and supply several branches in the immediate vicinity of our bakery every morning with fresh, artisanal baked goods," says Michael Nobis, owner of the 160-year-old family company Nobis Printen from Aachen. "The cooperation gives us the opportunity to be even closer to our customers and, moreover, to inspire new customers for us." See here for more: https://www.aldi-sued.de/de/nachhaltigkeit/lieferkette/nachhaltige-produkte/regional-und-saisonal/regionale-backwaren.html

Discount Retail Chain Penny Germany (owned by German REWE Group) sharpens its organic range, Penny wants to score points with price-sensitive customers and still remains far behind its competitor Lidl. Meanwhile, the first stores are getting a new store design. Do you remember how singer Nena, as Penny's “brand ambassador”, trudged with a group of happy-looking like-minded people through a green urban backdrop, with men with beehives reading newspapers on terraces, others on the balcony of theirs, scented with flowers “It's a fine day” Giant residential gourds stretched sleep out of their arms and construction workers sang operetta-like out of manhole covers? That was two years ago, and in all its mysteriousness, it's long been a discount story. The aim was to "further increase awareness and acceptance of a natural diet," said the Cologne headquarters about the organic carnival. Actually, however, attention should primarily be drawn to the Penny own private label brand “Naturgut”, which had already breathed new life into the retail chain in 2015 after a temporary mothballing, in order to “for the first time in the German discount store current nutrition trends such as vegetarian / vegan, regional and organic under one brand together”. The aforementioned universal positioning was, as already noted at this point, from the customer's point of view, however, rather confusing and Penny also seems to have noticed that in the meantime. Organic is more in focus When selected Naturgut products were labeled with the expanded nutritional information Nutri-Score last summer, the message was already explicitly referred to as an "organic private label". In the meantime, Penny is communicating much more emphatically to customers in its advertising that there are "over 200 organic products" to buy under the name Naturgut in the approximately 2,200 stores (but an undisclosed number of them only irregularly). The slogan “Of course for everyone”, which occasionally dangles from the shelves, becomes “organic for everyone”. In addition, the packaging is given a new design in a more eye-catching grass green, which also replaces the wooden box look printed on the cardboard boxes on the shelves. And in moving image advertising, it is communicated more clearly: “Our diverse range of natural goods is organic and cheap,” says a new spot. In response to a supermarket blog request, a Penny spokesman confirmed: "It is correct that we focused on the original positioning of the Naturgut range and that today we are primarily focusing on the 'organic' aspect." Regional products are now primarily identified by the "regional window" logo on the packaging. There are also vegetarian / vegan Naturgut products, also made in organic quality. Penny recently introduced its own brand “Food for Future” for explicitly vegan products (which then don't have to be organic). And if you look at it long enough, it might make sense too. At first glance, however, it is still above all: incredibly confusing. After all, Penny remains loyal to the chaos of its own private label brands that it regularly organizes. While the discounter has been seen as a trendsetter for a number of years in the course of the format modernization, in Cologne one has recently been forced to readjust because competitors are running ahead. The attempt to position 'Naturgut' more clearly as an organic brand was long overdue especially since Aldi and Lidl are engaging in an extremely eye-catching race for potentially more price-sensitive organic customers. The cooperation with Bioland has catapulted Lidl far forward. At the same time, the initiative also led other retail chains to try to work more closely with cultivation associations in order to also be able to offer (private label) products that go beyond the EU organic standard. See here for more on a private label development https://privatelabel.me/ No partner is mentioned on the package Penny's mother, REWE, has been working with Naturland for a long time and most recently became a member of the Demeter Association. When asked whether Penny also wants to strive for association-certified quality, the company explains: “For many Naturgut products, we already offer our customers food that comes from renowned cultivation associations. However, due to the not consistently available quantities, we do not make any claims on the respective natural good product. " Which is quite annoying because the quality of the association, which cannot be guaranteed throughout, can only be communicated with great difficulty. Online it says: “Our farmers also undertake to adhere to stricter requirements from various organic associations. You can recognize this by the words '100% Association [s] quality' on the packaging. " In contrast, Lidl is much better positioned thanks to its Bioland cooperation. (Most recently, "around 80" organic products out of a total of 340 permanently available organic products were communicated there.) “Then the newly branded products appear successively on the shelves. Depending on the lead time for the changeover of the packaging, this will vary depending on the product." New store design with a fixed number of customers Until then, however, there will be inconsistencies in the shops. "Bio for everyone" is currently being promoted "from our advertising" at the ends of the shelf. This includes products in the old and the new design. These include sugar lemonades and whiskey iced tea in non-organic quality from the same weekly brochure. The organic range at Penny has not been particularly wide so far, the torn shelf positioning also tends to make it invisible. And we don't even begin to think about how far this is from the ecotopia once communicated in advertising. That could change if the stores, as has now been decided, are converted to a new store design that was first tested in the Czech Republic (see supermarket blog) and later in some stores in Germany. The “Markthalle concept” sounds quite interesting and is characterized by the fact that it provides customers with a fixed route along the individual ranges (similar to Ikea) instead of relying on open transverse rows of shelves as was previously the case. This enables "easy orientation" and product groups can be "thematically grouped" in niches in order to make shopping "more intuitive", according to the Rewe employee magazine "One". Not enough space for the concept? Above all, the shopping atmosphere should be improved after Penny had recently looked rather old again against the modernization efforts of Aldi and Lidl. In order to occupy locations that were (so far) out of the question for the main competitors, Penny had also settled in areas in recent years that required significantly greater flexibility in the arrangement of the range. Imposing a concept on them that seems to be more space-intensive than the previous one does not work. That is why the project team has developed “a 'light” version of the concept, in which only the new fruit and vegetable arrangement and a few other elements would be adopted, “the shelves are still arranged horizontally”. After all, this is more progressive than going back ten years in time; Whether the design mess is also a smart decision will first have to be proven in Cologne. See here for more: https://www.supermarktblog.com/2021/02/09/design-auffrischung-penny-positioniert-naturgut-endgueltig-als-bio-eigenmarke/