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Discount Retail Chain Lidl Romania ticked a turnover of 9.7 billion lei ($2.4bn) and a net profit of over 491 million lei ($121mn) with 261 stores. These financial data reported to the Ministry of Finance show an increase of 25% compared to 2018, exceeding three times the average market growth. The figures are even higher taking into account the reports from the end of the financial year which, in the case of Lidl, means the end of February 2020. In this context, the company's plans for 2021, the 10th anniversary year of Lidl Romania, are great: a network of 300 stores and market-leader. Frank Wagner, CEO of Lidl Romania, says in an interview with Progresiv magazine that, if in the last three years Lidl has managed to grow three to four times above the market average and opening 15-20 stores every year, it will manage to achieve the same performance next year. At the moment Lidl single discount retail competitor in Romania is Penny Market ,owned by REWE Group with 262 stores and a revenue of $1bn in 2019 (see also our post https://www.discountretailconsulting.com/post/romania-penny-the-1-billion-discount-retailer). Hard discounter MERE (owned by Russian Torgservis) recently opened also its first store in Romania. Click here for more: https://revistaprogresiv.ro/articole/lidl-romania-investitii-anuale-de-cate-un-miliard-de-lei-si-o-tinta-clara-lider-de-piata

Discount Retail Chain Lidl's management has been completely overhauled, now the stores are to be given a new face. In Germany and other European countries, Lidl is still keeping a low profile and tests different in-store concepts and approaches, in Switzerland the discounter is already rolling out a completely new in-store concept. Certain aspects are identical to the Aldi Swiss concept. Aldi Swiss rolled out its concept to all stores earlier this year (also see https://www.discountretailconsulting.com/post/switzerland-aldi-launches-new-store-format). Click here to see the roll-out of the Lidl Swiss concept: https://www.lebensmittelzeitung.net/galerien/Das-neue-Ladendesign-von-Lidl-1510?utm_source=%2Fmeta%2Fnewsletter%2Fbasic&utm_medium=newsletter&utm_campaign=nl5626-basic&utm_term=23ad17e0d82c156bfb1691b1105f4604

Discount Retail Chain PENNY Market (owned by German REWE Group) and Auto Total launch Lyvra, the home delivery service that allows customers to place orders online and receive the products at home. Starting with August 2020, PENNY Market customers in Bucharest and Ilfov county will be able to place online orders and choose between over 1,400 products that can be found in stores, including private labels and promotions. Given the context of the restrictions imposed by the public health situation worldwide, but also as part of the rebranding process, PENNY Market meets the needs of its customers and is testing the online shopping service with home delivery. Customers will be able to make purchases on the website https://penny.lyvra.ro/, and the estimated time for delivery is three hours. Customers can pay either by cash or by card upon delivery, and the delivery fee is 19.99 lei. German retailer Penny Market ups entry-level salary in Romania According to a press release, the service will be available starting this month. Customers can choose from about 1,400 products listed in physical stores. "We have learned to adapt continuously, and Lyvra is an example. The development of the Lyvra online shopping platform comes as a result of rapid changes that have affected global trade and urged customers to take strict measures to protect their health, especially by minimizing contact with other people," said Daniel Gross, General Manager Penny Romania. “We are confident that we can seize the opportunity to expand our business through our partnership with PENNY, integrating existing resources from the call center and our fleet of over 650 cars and using synergies in the delivery activity to reach the customer as well as possible. Lyvra is a simple and fast way in which the inhabitants of Bucharest and Ilfov can order everything they need at any time, at home or at the office, respecting the rules of social distance and the measures for protecting them and those close to them. We have taken extra precautions for the safe delivery of products: each driver is equipped with a face mask and electronic devices to collect payments by bank card, and all cars are equipped with thermal boxes and cooling elements for transporting perishable goods.” Says Laurențiu Niculae, Operational Director of AD Auto Total. Penny Market operates 264 stores nationwide and three logistics centers located in Ștefăneștii de Jos, Turda and Bacău. Click here for more: https://business-review.eu/business/retail/penny-products-delivered-for-the-first-time-directly-to-home-via-lyvra-212391

Discount Retail Chains and supermarkets globally have been among the few businesses retaining intimate contact with consumers during the coronavirus lockdowns. They have done a great job as an essential service to the community, helping to ensure safety and boost trust. In the short term, supply chain constraints led to increased purchase opportunities for Private Label Brands, as consumers have not been able to find certain manufacturer brands. In the medium term, economic constraints may drive a new wave of Private Label adoption for value seeking #consumers. However, retailer #PrivateLabel isn’t just about price. #Retailers go to market with a wide range of Private Label #strategies, depending on their specific customer bases. They increasingly understand the need to treat their Private Label Brands like true brands, to ensure their propositions are appropriate for their specific customer bases. For example, some retailers have created wellness and sustainability-focused Private Label strategies, including ingredients reduction and calling out provenance. In almost all European countries the Discount Retail and supermarket chains' own private label brands again increased their market share last year. Switzerland, Spain and the UK remain at the forefront. In six countries, Private Labels represent more than 40% of the volume, but in terms of turnover, market share is significantly lower: private labels generally offer a cheaper alternative to branded products. Click on image for more:

Consumers feel the need to be careful with their money because that is a lesson that everybody has learned from the Great Recession a decade ago. This means private label brands are going to do well. It's a nice tailwind for private label brands under the current environment. Since the last recession more than a decade ago, retailers such as #Kroger, Discount Retailer #Aldi, #Costco, #Wegmans, #Publix, Aldi owned #Trader Joe's and even Discount Retailer Dollar General have invested heavily in the space through better package designs, improved quality and multi-tiered offerings. Private brands in the U.S. generated $153 billion in 2018, including edible and non-edible products across multiple retail outlets, according to a report last year from #The Food Marketing Institute and #IRI. The firms found the products are reaching a larger audience across demographics and generations.​ Kroger, the largest supermarket chain in the U.S., gets about 20% of its $122 billion in annual sales from its own private brands, while at Albertsons, the segment now makes up more than a quarter of its total revenue. Even if the economy rebounds fully, it is expected there will be new work norms that will enable more people to work from home — and there will be increased household consumption of the private brands customers grew to love during the stay-at-home time." Click on image for more:

Discount Retail Chain Lidl impressed with its own private label brand products. Five articles received the marks 'very good' and 'good'. The sensitive baby wet wipes from 'Lupilu' score top marks. With the ingredients that are ideal for baby skin and the overall result, the German Ökotest magazine awards a 'very good' for the Lidl product. The 'Saskia Still 1.5 liter' water from the Leissling and Löningen sources (owned and produced by the Lidl owner, the Schwarz group) also impress with their ingredients, purity and packaging made from 100 percent recycled material. The mineral water scores overall with the grade 'good'. The Ökotest testers praise the crispy breading and the delicate fish as well as the spicy taste of the 'Ocean Sea' fish fingers 15 pieces. Both in sustainable fishing and in the overall grade, the article receives the grade 'good'. The 'Cien' Shower Gel Fresh Lime is also rated 'good' and costs just 46 cents per 250 milliliters. This core competence convinces Lidl in all studies: All Lidl own private label brand products are among the cheapest items in the respective tests. Click on image for more:

Discount Retail Chain ALDI Poland has introduced a new private label brand 'ŚwieżeJesz' (Freshfood). The new brand will be used for fruit and vegetables, more than half of Aldi's assortment are products from Polish farmers and fruit growers. The ŚwieżeJesz brand is a new approach of ALDI to promote its fruit and vegetables. The brand will ultimately cover all packaged fruit and vegetables as well as selected products sold per piece. Already now the brand ŚwieżeJesz can be found, among products such as: American blueberry, raspberries, mushrooms, cut celery, parsley and oyster mushrooms. For the brand, a special labels, wrappers and hangers were developed, some of which refer to the shape of the product. Apart from the logo of the ŚwieżeJesz brand, the new markings contain: EAN code or PLU code, information about the supplier, lot number and the country of origin of the product. Products of Polish origin are additionally marked with the special symbol 'Polish Product'. ALDI focuses on cooperation with domestic suppliers. Of the complete fruit and vegatable assortment , more than half of the products come from Polish farmers and fruit growers. The introduction of the ŚwieżeJesz brand is another step in emphasizing the care for freshness. Since June 15, Aldi has started the "Fresh with ALDI" marketing campaign, the leitmotif of this campaign is freshness. Click here for more: https://www.dlahandlu.pl/wiadomosci/,89687.html

About 90% of the consumers trust store and OE private label brands as much as they do national brands, according to a new report from Daymon. The company's 2020 Private Brand Intelligence Report, “The Future of Private Brands,” also found that 86% of U.S. consumers view private brands as equal or better to national brands. These insights were gleaned from Daymon's 2020 Private Brand Survey of more than 2,000 U.S. shoppers and custom intelligence from the global private label brand agency. The report paints the state of the industry as private label brands as seeing $183 billion in private label brand annualized sales, garnering a 19.2% dollar share. The report said private brand sales have increased by 5% year over year, and are growing two times faster than national brands. In a finding that underscores the role private label brands play in loyalty, more than half of shoppers surveyed said they pick a store specifically for its private brands and only 6% of respondents said they exclusively shop national brands, with more than a third saying the bulk of their shopping carts are store brands —  11% more than said this in the past two years of the study. Best-in-class retailers dedicate 43% of their own private label brand programs to value-added lifestyle items, compared to the industry average of only 16%. Additionally, Daymon’s report is looking at private label brands in the COVID-19 era and what that future holds. The report said private label brands are well positioned for the future. Daymon’s custom analysis of store brand programs across the country reveals that best-in-class retailers dedicate 43% of their own private label brand programs to value-added lifestyle items, compared to the industry average of only 16% — nearly three times the expected level of assortment differentiation. It’s this shift toward lifestyle programming that is positioning store private label brands as being stronger in the eyes of consumers, the report said. Daymon’s research demonstrated that 40% say that private brands now offer more new and innovative products than in the past, resulting in nearly e80% saying that store brands are “on-trend,” and even more so than national brands, representing a 15% increase in favorability towards private brands over the last two years. Private brands also have grown their market share in 88% of categories across the store over the past three years, the report said, and pandemic shopping is only going to fuel this, including online. The report said 2019 annualized online sales of private brands reached $1.7 billion, an 87% year-over-year increase. Factoring in COVID-19 shopping habits online in 2020, that number will certainly grow by a big number. Click here for more: https://storebrands.com/daymon-report-sees-very-bright-future-private-label?utm_source=omeda&utm_medium=email&utm_campaign=NL_Store+Brands+Intel&utm_keyword=&oly_enc_id=8775F0135745H1C

Discount Retail Chains as Mercadona, Dia, Lidl and Aldi alone have together 40% market share in Spain, and more than 50% in certain assortment categories as drugstore or dry food. They build their assortments around high volume consumption, without paying too much attention to the manufacturers' brand proposals: in fact, they distinguish by having the lowest rates of product innovations. These four Discount Retail Chains together represent two third of the total private label sales in Spain, due to their high sales volumes: respectively DIA 46.4%, Mercadona 62.9%, Aldi 74.7 % and Lidl 79.5%, for pre-packed products A 2019 study of PLMA (Private Label Manufacturers Association), gives Spain the “honor” of being the most favorable European country for its Private Label Manufacturing associates: Spain had a share of 51% in volume, ahead of Great Britain with 47%, and Germany with 43% (the birthplace of hard discount, with private label only assortments). The future path of Private Label will be determined, to a large extent, by the growth of the Discount Retail Chains. As none of them has any intention of substantially changing their commercial policy, the evolution of the Private Label market shares will automatically grow further. Click on image for more:

Now is the time for private label brands to help consumers and expand category presence While retailers continue to search for ways to provide their customers with the best quality products, store brands offer a way to provide those products at a lower price and build customer loyalty at the same time. Private label and store brands are now an integral part of category growth strategy for retailers across the world. According to The Private Label Manufacturers Association (PLMA), in the US private label grew by 4.4% in 2018—four times as much as national brands—and store brands’ market penetration set all-time records. Private label sales added $5.5 billion in sales to reach between $129 billion and as $170 billion overall. They estimate that one out of every four products sold in the United States is a private label or store branded product. “While shoppers across generations and income groups in 2019 are undoubtedly more price conscious, they are turning to private label because of their positive perceptions of the value,” said Joan Driggs, vice president of Content and Thought Leadership. “Shoppers are buying private brands because it makes them feel good to save money without sacrificing taste, selection or quality. The improved consumer perception of private label value is having a growing influence on store choice, with many leading retailers offering premium private label selections.” Click on image for more:

German independent Test Foundation 'Stiftung Warentest' has tested several liquid and solid shampoos. The surprising winner is a shampoo from the Discount Retail Chain Lidl. Solid shampoos score good in the ecological balance and can also travel in hand luggage. However, if you pay attention to the price, the liquid products are unbeatable. But how do they wash in comparison? 'Stiftung Warentest' compared eight liquid shampoos with four hair soaps and six shampoo pieces in some aspects such as care and use, and came to a positive result. All liquid and six solid products received the overall rating "good". In comparison, the Lidl Private Label brand 'Cien Day by Day Fruit / Vitamin Shampoo Power & Volume Normal Hair', which emerged as the test winner, was particularly convincing. In addition to the positive results for hairwashing, the discounters' shampoo also scores top with a price of US $ 0.86 in terms of price-performance ratio. Poor hair soap care During the care, the testers looked at how well the hair can be combed after washing, whether it is shiny, smooth and voluminous. Liquid and solid shampoos perform consistently well here. The situation is different with hair soaps. Solid shampoos and hair soap look similar at first glance, but the latter is saponified with lye. Solid shampoos convince in the test 'Stiftung Warentest' also assessed the life cycle. Here the solid shampoo always beats the liquid. The production uses less energy, the solid shampoo also has no preservatives and is often mixed with less fragrances and dyes. The solid shampoo is also usually packed in paper or recycled cardboard, as liquid shampoos are usually filled in plastic bottles. Another plus point is that solid shampoo is overdosed less than is the case of liquid shampoo. Click here for more: https://www.chip.de/news/Shampoo-Test-bei-der-Stiftung-Warentest-Discounter-Produkt-stellt-die-Konkurrenz-in-den-Schatten_182741281.html

Discount Retail Chain Lidl Germany's Private Label brand called 'Floralys' recycling toilet paper rated as 'good' as it is sustainable and inexpensive. This is published in the August issue of the German independent ecology test magazine: 'Oekotest'. 'Floralys' is also one of the cheapest recycled toilet paper on the German market. It convinces with its ingredients and consists of 100% waste paper, which saves wood, water and energy. This Lidl product also demonstrates its good quality in practical tests and stands out with its tear resistance. Lidl's Private Label 'Freshona' organic applesauce also rated 'good' in the same 'Oekotest' issue. The apple sauce convinces the testers with a strong fresh apple note and its ingredients. Click here for more: https://www.presseportal.de/pm/58227/4667225?utm_source=digest&utm_medium=email&utm_campaign=push