Discount Retail Chain Aldi Süd has emerged victorious in a lawsuit initiated by the coffee roaster Tchibo. The judges found no issue with selling coffee below production costs. For the Hamburg-based company, this ruling signals a concerning trend for the entire industry. Once again, Tchibo faced a legal setback against Aldi Süd regarding allegedly low coffee prices. According to a spokeswoman, the 6th Cartel Senate of the Düsseldorf Higher Regional Court dismissed the appeal against the initial verdict. The decision is not yet final, and Tchibo can appeal to a higher court. A written explanation of the judgment is still pending. The Hamburg coffee roaster accuses the discounter of repeatedly selling its own brand Barissimo coffee below production costs since late 2023, viewing this as a legal violation. Tchibo sought to legally prevent Aldi Süd from continuing this practice, arguing that such aggressive pricing harms competition and consumers. The judges disagreed, stating there was no unfair conduct by the discounter. Aldi Süd is permitted to sell coffee below production costs during discount promotions. Tchibo spokesman Arnd Liedtke expressed disappointment, saying the court missed an opportunity to address a problematic trend in the German food trade. The legal battle might not be over yet. Tchibo has one month to request a review of the judgment, which would involve the Federal Court of Justice. "We will evaluate the written judgment and consider further actions," said the Tchibo spokesman. Aldi Süd declined to comment. "Legally soundly justified" Tchibo's initial lawsuit was unsuccessful at the Düsseldorf Regional Court in January 2025, prompting an appeal. According to Tchibo, Aldi Süd has occasionally sold certain coffee types at significant losses, reportedly two euros per kilo or more. The coffee is produced by Aldi's subsidiary, New Coffee. Industry experts suggest the case highlights the shifting power dynamics in retail. "The situation shows how food chains exert pressure on brand manufacturers by introducing their own brands and entering production," said Jens-Uwe Franck, Professor of Commercial and Antitrust Law at the University of Mannheim. The prohibition against selling food below cost price does not extend to selling below production costs. The court provided a "legally sound justification" for this. The Federal Court of Justice addressed a similar case years ago. In 2002, the Cartel Senate barred the US retailer Walmart from offering certain low-cost deals. At that time, the judges objected to sugar being sold below its purchase price, which could harm smaller competitors due to Walmart's market dominance in Germany. Basic price items like coffee or butter are significant in the food trade, as prices are closely monitored. Retailers often discount them to draw customers. "Generally, antitrust law permits strong market players to use a mixed calculation, selling some products at a loss for promotional purposes," said antitrust lawyer Franck. Germans drink 163 liters of coffee per year Coffee traders and roasters are currently facing tough times. Green coffee prices have surged, mainly due to poor harvests. According to the International Coffee Organization (ICO), the average price for a pound of green coffee in December last year was around three US dollars, up from $1.82 in February 2024. Consequently, Tchibo has increased its prices in February 2025 and plans to do so again soon. German consumers are paying significantly more for coffee than in previous years. According to the Federal Statistical Office, coffee bean prices were nearly 55 percent higher in December compared to 2020, and over 21 percent higher than the previous year. The German Coffee Association reports that an average of 163 liters of coffee is consumed per person annually. There are over 900 roasters across the country. The association notes that over one million tons of green coffee are imported into Germany each year, with a large portion coming from Brazil. In 2025, Germany imported 5.4 million 60-kilo bags of coffee from Brazil, making it the largest buyer of Brazilian coffee, as reported by the coffee exporters' association Cecafé. Read more: Tchibo loses again in court: Aldi Süd is allowed to sell coffee below production costs - ntv.de #smartdiscount #aldi #sued #germany #negativemargin #margin #ownproduction #coffee #promotion #pricing #pricingstrategy #tchibo #court #law #win #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd

Discount Retail home improvement retailer MR DIY is set to raise approximately Rp4.15 trillion ($260.2 million) through the initial public offering (IPO) of its Indonesian unit, Daya Intiguna Yasa. The offering represents 10 percent of the company’s total shares, or 2.52 billion shares. The IPO consists of 2.27 billion shares owned by Azara Alpina Sdn Bhd and 251.9 million newly issued shares by the company. According to the prospectus published in Investor Daily on Thursday, the IPO price has been set at Rp1,650 per share, the lower end of the initial bookbuilding range of Rp1,650 to Rp1,870 per share conducted between Nov. 25 and Dec. 3.  Public subscription took place from Dec. 13 to Dec. 17, with shares slated to debut on the Indonesia Stock Exchange (IDX) under the ticker symbol MDIY on Dec. 19. CIMB Niaga Sekuritas and Mandiri Sekuritas are acting as underwriters for the offering. Prior to the IPO, Azara Alpina Sdn Bhd holds a 95.67 percent stake in the company, with other shareholders including Darwin Cyril Noerhadi (2.30 percent), Agave Salmiana Sdn Bhd (1.27 percent), Loh Kok Leong (0.23 percent), Edwin Cheah Yew Hong (0.20 percent), and Indosam Pte Ltd (0.33 percent). The ultimate beneficial owner and controller of Daya Intiguna Yasa is Tan Yu Yeh, who founded MR DIY in 2005. In a statement dated Oct. 29, Tan committed to maintaining control of the company for at least 12 months following the IPO. Tan Yu Yeh: A Malaysian Billionaire According to Forbes’ Real-Time Billionaires list as of Nov. 25, 2024, Tan Yu Yeh ranks as the 18th richest individual in Malaysia, with a net worth of $1.2 billion. Much of his wealth stems from MR DIY’s parent company, which he listed on the Malaysian stock exchange in October 2020, elevating both him and his brother, Tan Yu Wei, to billionaire status. Daya Intiguna Yasa operates under the MR DIY brand, specializing in retailing household goods, furniture, hardware, stationery, cosmetics, toys, and other categories, including automotive accessories and electronics. As of June 30, the company operates 824 stores across Indonesia. According to Frost & Sullivan, MR DIY is the discount largest player in Indonesia’s home improvement retail sector by store count, outperforming both domestic and international competitors in the non-grocery retail segment. Unlike other retailers, all MR DIY stores are company-operated rather than franchised. Read more: MR DIY's Indonesian Unit to Debut on IDX with $270 Million IPO #smartdiscount #indonesia #ipo #expansion #mrdiy #growth #development #idx #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain DALI Everyday Philippines get a lot of attention of the large private equity fund giants KKR, General Atlantic ABC Impact, and Hillhouse Investment, among others. They say to be in talks to invest in Philippine hard-discount grocery retailer DALI, which is potentially raising a pre-IPO round that could exceed $80 million, according to multiple sources familiar with the discussions. The round is likely to see participation from some of the existing investors as well. UBS is advising on the transaction, and, if finalised, it could figure among the major private equity transactions in Southeast Asia’s retail sector. The final deal size is still being determined, and discussions are at a mid-stage, sources said, adding several global investors are showing interest in the company amid a positive shift in sentiment around Southeast Asia’s consumer market. UBS, DALI, KKR, General Atlantic, and Hillhouse declined to comment on the matter. DALI Philippines is a subsidiary of Switzerland-based DALI Hard Discount and is currently backed by several prominent institutional investors, including ADB, IFC, Creador, DEG, Navegar, Pavilion Capital, and Venturi Partners. In September last year, the IFC was considering a quasi-equity investment of up to $10.07 million in Dali, as part of the latest round. The company has raised multiple rounds of funding, and proceeds from the latest round are expected to expand its store footprint, strengthen its supply chain capabilities, and further invest in local sourcing. These efforts would support DALI’s longer-term goal of an initial public offering (IPO), the sources mentioned above added. Founded in 2020, DALI operates a hard-discount retail model, inspired by German supermarket chain Aldi, with a focus on affordable products and stripped-down store formats. The company runs approximately 1,000 stores across Luzon, targeting price-sensitive consumers in suburban and lower-income neighbourhoods. DealStreetAsia’s DATA VANTAGE shows that DALI has not declared revenues over the past three years and posted wider losses at $8.58 million in 2023 from $3.09 million in 2022. The proposed fundraising comes when global investors are looking to Southeast Asia for scalable consumer opportunities, driven by the region’s expanding middle class and relatively low penetration of discount retail models. Private equity majors KKR and General Atlantic have been active investors in Southeast Asia’s consumer space. KKR’s recent investments include Vietnam’s Medical Saigon Group and PHINMA Education Holdings in the Philippines. General Atlantic’s most recent investment was in Indonesia’s beauty platform Sociolla, and its past bets include dairy company Cimory and Filipino entertainment app Kumu. Read more: PE majors said to invest in PH discount retailer DALI's biggest round #smartdiscount #dali #philippines #switzerland #ipo #expansion #growth #development #investors #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #kkr #abcimpact #generalatlanic #ADB #IFC #Creador #DEG #Navegar #PavilionCapital #VenturiPartners

Discount Retail Chain Lidl France has hit hard with an extraordinary store, both in terms of its size and organization. An ambitious project, thought out on several levels, which awakens curiosity as much as it impresses when you are there. Behind This eagerly awaited opening, the German brand displays clearly its ambitions for the future. Modernization, Innovation and a reimagined customer experience are at the heart of this new model. Lidl inaugurates an extraordinary and record-breaking store in Muret It is therefore in Muret, near Toulouse, that Lidl opened today its last supermarket like no other. From 8 a.m., there were many customers in front of the doors of this new point sales concept, presented as the brand's latest concept. With a sales area of 1,840 m² spread over three levels, it is quite simply, according to its store manager Patrice Casanave, from the "largest Lidl in the world". This new store stands out with a completely redesigned layout. The worlds of fresh, fruit and vegetables, meat and poultry are organized vertically. And this is a first for the brand. There are also huge refrigerated sections for frozen foods, a dedicated to wine, as well as automatic payment checkouts. Other particularity, an early opening at 8 a.m. Again, it is unique at Lidl. This project is a follow-up to the extensive modernization launched by the brand about ten years ago to gain even more market share. Lidl relies on sustainable and innovative architecture This new Lidl was built in the square of the old store, destroyed last spring, which was already one of the highest attendance at the Toulouse region. But it had to be rethought in order to to meet the constraints of the site, located between Avenue Jacques Douzans and the Avenue de l'Europe. This is why the building has been rebuilt on three levels. The regional Lidl France real estate manager, Hélène Vivien, explains that the store be adorned with a green façade, integrating directly from the greenery to the structure. But also a façade glazed glass and noble materials in order to bring more brightness and a warmer atmosphere. The building has has also been designed with eco-friendly materials, low-power equipment and it works 100% with green electricity. Thus, no less than 1,102 m² of panels photovoltaic systems have been installed on the site. Lidl innovates with a sales area in the first floor and new equipment Another striking new feature: the sales area is located at upstairs, a great first at Lidl. To access it, customers use escalators. A rooftop has also been equipped for staff break times. In total, 40 employees work in this store, including 20 from new recruitment. On the parking side, the ground floor has a covered car park with 61 spaces for easy access direct to the store. Outside, 70 additional seats are available available, as well as four electric charging stations. Finally, nearly 1,000 m² of parking space has been made of cobblestones draining, to allow rainwater to infiltrate directly into the soil. The municipality of Muret supported this project by redeveloping and reforesting green spaces in the surrounding area, including Blaize Square, with a cycle path proximity. So here is a new generation Lidl, who ticks all the boxes of modernity and who could well emulated elsewhere in France. Read more: Lidl: considered "the largest in the world", this new store opens its doors in this French city, "It's unprecedented" #smartdiscount #lidl #france #expansion #largest #store #growth #development #businessdevelopment #format #realestate #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #harddiscount #hd #twitter

Discount Retail Chain Denner achieved marginal sales growth of 0.13% in its 2025 financial year, reaching CHF 3.9 billion (€4.07 billion) across its 612 self-owned stores and 260 partner businesses. The company’s store network expanded by two locations, to 872 stores, and continues to grow. To date, 250 existing points of sale have been upgraded to the new store concept, significantly enhancing its fresh produce offering. This revitalisation, combined with a double-digit million-euro investment in price reductions on 670 products (approximately 18% of its 3,700 SKUs) in 2025, has led to a 1.6% increase in customer traffic. CEO Torsten Friedrich highlighted the company’s ambitions, saying, “Our goal is to expand our branch network to 1,000 locations in the medium term and to solidify a market share of 10%. “To achieve this, we are investing long-term in pricing, our branch network, logistics and infrastructure.” The overhaul of the store network is yielding clear results: over 40% of all Denner stores now feature the new concept, resulting in a 5% increase in sales and a 7% rise in customer traffic. Over 90 additional locations are scheduled for conversion by the end of 2026. Logistics, Infrastructure Expansion To support this growth, Denner is constructing two new distribution centres, as follows. Mägenwil (Chilled Goods): This new 10,000-square-metre centre began operations on 2 February 2026. It has created 70 new jobs and is optimising the fresh-product supply chain. Significantly, it is the first Minergie-certified fresh-food distribution centre, supplying approximately 250 locations with products. Aclens, Vaud (Non-Refrigerated Goods): A fourth distribution centre for ambient goods is currently under construction and scheduled to open in 2027, boosting Denner’s logistics capacity in western Switzerland. Following the Mägenwil opening, Denner now operates six logistics locations, including three dedicated to non-refrigerated g oods. Read more: Eyes 1,000 Stores, 10% Market Share | ESM Magazine #smartdiscount #switzerland #denner #expansion #growth #development #stores #marketshare #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd

Discount Variety Retail Chain MR. D.I.Y. boosts its expansion in Spain with the opening of a store in the El Rosal shopping center, in Ponferrada (León). This is the first store of the brand in Castilla y León with its renewed store concept. The MR.D.I.Y. store in El Rosal has a surface area of 550 m², is located on the first floor of the shopping centre and responds to the company's commitment to locations in high-traffic shopping centres. With this opening, the chain advances in its goal of reaching 300 stores in Spain before 2030. The new concept introduces clear improvements in the shopping experience, with a more contemporary design, materials in natural tones and wood, lower furniture, greater luminosity and more comfortable circulation within the point of sale. A model that has already demonstrated its positive impact on other markets, with sales increases of up to five times compared to stores in the previous format. The brand, known for its promise of "Always low prices", offers an assortment of more than 18,000 SKUs aimed at the home, decoration, DIY, stationery, toys and everyday consumption. "This opening allows us to bring our proposal closer to new territories and to an audience that values price, but also a clear and comfortable shopping experience. El Rosal fits perfectly with our growth strategy in consolidated shopping centres", says Antonio Rodríguez, Head of Operations at MR. D.I.Y. in Spain. The new establishment, inaugurated this Wednesday, February 4, is part of the progressive deployment of the format that MR. D.I.Y. is implementing in Europe, and which had its premiere in Megapark and Zubiarte (Bilbao), later arriving in the Community of Madrid with the stores of the Parque Corredor (Torrejón de Ardoz) and H2O (Rivas-Vaciamadrid) shopping centers. Since its arrival in Spain in 2022, MR. D.I.Y. has developed a network of more than 24 establishments and, since 2025, it has accelerated its growth with a clear focus on modernising its commercial network and gaining capillarity in the national territory. The company's roadmap is articulated around four axes: improved and modern shopping experience; assortment of products adapted to local demand and, of course, always with low prices; relevant and engaging seasonal campaigns; and visually striking marketing actions aimed at the Spanish consumer. Originally from Malaysia, MR.D.I.Y. currently has more than 5,000 stores in 14 countries and receives more than 1 billion visits a year. Its expansion in Spain is part of a global strategic plan that is committed to the shopping centre channel as an ideal environment for a comfortable, complete and quality shopping experie nce. MR. D.I.Y. just published that it will open soon stores in Germany, see also Germany: Mr. DIY makes its German debut Read more: MR. D.I.Y. arrives at the El Rosal shopping centre in Ponferrada with its new store model - News and Actualidad Retail #smartdiscount #mrdiy #expansion #europe #spain #germany #remodel #storeformat #change #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd #variety

German consumers are increasingly looking at prices when shopping for food. But whether they shop at the discounter or in the normal supermarket apparently makes practically no difference. Whether butter, coffee or sausage: The main German discounters ALDI and Lidl are currently engaged in particularly intense competition. Sometimes one lowers prices first, sometimes the other reacts with an even cheaper offer, most recently, for example, for chocolate products. The price war is also a reaction to changing buying behaviour: According to a survey by the retail research institute IFH Cologne, more than 70 percent of consumers compare prices more closely when shopping for groceries and are more likely to take advantage of special offers. "Equal to the cent" Whether discounters are actually cheaper has been analysed by the comparison app Smhaggle on behalf of the German Press Agency. The core product ranges were examined, around 2,000 products that are available from all suppliers and are therefore easily comparable. Special offers were not taken into account. The result: the prices are almost identical across all providers. "Whether it's milk, yoghurt, pasta, butter or cucumber: the prices of these products are the same to the penny, with a few exceptions," says Smhaggle Managing Director Sven Reuter. This applies to both private labels and branded products, regardless of whether they are discounters or supermarkets. Regional deviations are possible, for example in markets run by independent merchants. According to Reuter, the evaluation is based on more than 10,000 receipts a day, which users upload via the app. Prices align Typically, the discounters lower prices first. Other retailers such as Rewe, Edeka or Kaufland will then quickly follow suit. According to Reuter, they often react within a few hours or one to two days. Since prices then converge again, there can be no question of a permanent price leadership of a single retailer. Rewe now openly advertises that it offers several thousand products permanently at discounter level and regularly compares prices with ALDI and Lidl. Edeka is also pursuing a similar approach. Where are the differences? Retail experts see the differences between discounters and supermarkets disappearing overall. Discounters are investing more in ambience and branded products. "The quality of the goods is also high," says Michael Gerling, Managing Director of the retail research institute EHI. Supermarkets would have to make more of an effort and offer additional experience value, for example through gastronomy, service counters, events or regional assortments. However, one clear difference has remained: discounters carry significantly fewer items. From the point of view of Carsten Kortum, professor of commerce at the Baden-Württemberg Cooperative State University Heilbronn, this is not necessarily a disadvantage. "Selection is basically good, but too much can also overwhelm," he says. A clearer selection makes it easier for many customers to make a purchase decision. Shift in favour of the discounters In terms of sales, the discounters are ahead overall. Their market share in the trade with everyday products is a good 38 % while supermarkets such as Rewe and Edeka come to around 28.5 %. Experts explain the shift in favour of discounters, which has been going on for years, primarily with increased price awareness as a result of high inflation. According to Smhaggle boss Reuter, those who really want to save money can do so primarily through targeted purchases of promotional products - regardless of whether they are made at discounters or in supermarkets. Read more: Discounter und Supermärkte bei Lebensmitteln preislich gleichauf | tagesschau.de #smartdiscount #german #competition #price #difference #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd

Discount Retail became in 2025 a buzzword in China, with the concept of "discount" evolving beyond a mere consumer strategy of "buying more for less." It represented a significant strategic transformation for the entire industry. Reflecting on this, the global discount retail sector experienced an unprecedented upheaval, beginning with Aldi China with digital presence in 2017 and physical stores in 2019. Subsequently, the top three Chinese tech giants, JD.com and Meituan, opened physical stores, while traditional players like Hema (owned by Alibaba) and Wumart embarked on radical "Hard Discount" reforms. Discounting has transcended being just a trend; it has become a "certainty wave." The victors are those who can effectively integrate supply chains with offline experiences to redefine the boundaries of "cheap" and "good." The Top 10 Key Developments in 2025 01. JD.com Opens its First Discount Supermarket (National) On August 16, 2025, JD.com officially entered the large-scale discount supermarket race in Zhuozhou, Hebei. The 5,000 sqm store attracted 60,000 visitors on its first day. It features over 5,000 daily essential SKUs with a "Low Prices Every Day" strategy, bridging JD’s online logistics with instant offline delivery. 02. Meituan’s "Happy Monkey" (快乐猴) Discount Supermarket Debuts On August 29, 2025, Meituan’s community hard-discount brand opened its first store in Hangzhou. Under 1,000 sqm, it focuses on high-frequency daily necessities. A highlight is the "Happy Kitchen," offering fresh baking and hot food, achieving first-day sales of over 400,000 RMB. 03. Chao He Suan (Hema) NB Upgrades to "Hema Super-Value NB" (超盒算NB) and Opens Franchising Hema transitioned its hard-discount business from self-operated to a franchise model. This move covers key cities like Shanghai and Hangzhou. The strategy relies on "Three Highs and Three Lows" (High efficiency/output vs. Low price/waste/margin), with private labels accounting for 60% of stock. 04. Discount Cow (折扣牛) Expands Globally with a 100-Store Target Founder Ma Xintong announced plans to open 100 stores in Singapore within three years. This follows a strategic partnership in the US with Maison Solutions. The goal is to export China’s ultra-efficient supply chain to overseas Chinese retail markets. 05. Wumart (物美) Doubles Down on the Discount Track The Beijing-based retail giant opened six "Wumart Value" (物美超值) hard-discount stores simultaneously. They reduced SKUs to under 1,300 (only 15% of a traditional hypermarket) and prioritized factory-direct private labels to ensure price competitiveness. 06. Zhongbai Group (中百集团) Massive Transformation: 51 Stores Open at Once The Hubei retail leader set a record by opening 51 hard-discount stores in a single batch. By eliminating middleman markups through "Naked Price Direct Sourcing," they reduced overall prices by over 20%, focusing on a 1-3km community service radius. 07. Don Quijote (PPIH) Launches "Food Supermarket" Brand The Japanese discount giant announced a new food-focused format for 2026, aiming for 200-300 stores by 2035. Food will make up 60% of the inventory, leveraging their "discount editing" expertise for community consumption. 08. HotMaxx (好特卖) Opens "Super Warehouse" in Beijing The soft-discount leader opened a 10,000 sqm warehouse store in Beijing. Beyond snacks, it added seven zones for luxury goods, outdoor sports, and beauty, introducing over 3,000 brands to attract families alongside its younger core audience. 09. Hubei’s "Le'erle" (乐尔乐) Stumbles in Shanghai, Shanxi, and Gansu The rising star of the "Down-Market Pinduoduo" model faced setbacks in national expansion. Store closures in major cities highlighted the difficulty of replicating a low-tier market model in high-cost areas where logistics and quality demands are higher. 10. Lianhua Huashang (联华华商) Deploys 14 "Lianhua Fude" (FD) Stores in Hangzhou Targeting the community retail trend, this brand focuses on high-quality daily essentials with 1,200 core SKUs. Using factory-direct sourcing and customized products, they aim to capture the "high quality-to-price ratio" market. Conclusion The common thread of 2025 is that the competition has entered the "Deep Water Zone," where the supply chain is the foundation and user experience is the axis. Discount stores are not charities; low prices must be matched by extreme operational efficiency. As Hema, Zhongbai, and Le'erle have shown, relying solely on low prices or rapid land-grabbing is not a sustainable path to victory. #smartdiscount #china #aldi #expansion #growth #development #LianhuaFude #Leerle #National #happymonkey #hotmaxx #donquijote #zhongbai #discountcow #hemanb #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd

Discount Retail Chain Aldi is keeping the frequency high: The discounter reports seven price reductions in the first six weeks of the new year and thus sees itself confirmed as the price leader in Germany. And the retailer also lets the consumer know this mantra-like, be it in radio and TV commercials or on billboards and in online advertisements. Because Aldi feels attacked and challenged. And in fact, competitor Lidl has been trying to adopt the price leader image for some time. A price war is raging between the discounters Aldi and Lidl: First, the two chains are trying to gain dominance in the German food trade through butter. Now the battle is shifting to sweets. For decades, the distribution of roles in the German retail sector was clear: Aldi, the inventor of the discount principle, sets a price, and the competition has to follow suit. In the meantime, however, the discounter is almost on a par with the Schwarz Group in terms of size and is therefore increasingly self-confident. This can be seen, for example, in sales: Lidl's net revenues totalled 30.4 billion euros in 2024, according to retail researchers at the EHI Retail Institute, while Aldi Nord and Süd together came to 33.7 billion. In the digital business with technology and non-food items, Lidl has already taken the lead, while Aldi even closed its online shop at the end of September last year due to a lack of profitability. The continuous race to catch up is now culminating in a tangible dispute for supremacy on the domestic market. And Lidl has recently launched several attacks. First last summer with the "largest simultaneous price reduction in the history of Lidl". At the time, the retailer had promised permanent reductions for a good 500 items, but without specifically naming products and prices, which is why the Hamburg Consumer Advice Centre is currently suing the industry giant for allegedly misleading advertising. Aldi followed suit with a total of 1000 reduced products and without providing any points of attack for consumer advocates. Since then, the debate has shifted to the level of individual products. Coffee is an example of this, but above all dairy products. Partly on a weekly basis, there were price reductions initiated by Lidl and sometimes by Aldi for cheese, cream, yoghurt and above all for butter. The classic 250-gram cube of the respective own brand currently costs 99 cents. This means that the price has more than halved within a year. And now the next category in the discounter battle follows: chocolate. Aldi made the start. Shortly before Christmas, there were the first price reductions for some own-brand products, especially chocolate bars – the competition followed suit in each case. To coincide with the start of the International Confectionery Fair (ISM) in Cologne, the next step will follow in the next few days. This time, Aldi is reducing a total of 30 items of its own brands Choceur and Moser Roth, at least by ten, in some cases by up to 50 cents per bar or pack. Lidl counters and also lowers chocolate prices Lidl's response followed immediately: The discounter from Baden-Württemberg even undercut the price reductions for a good dozen products, such as chocolate lentils or whole milk bars with almonds or salted cashews from its own brands Fin Carré, Mister Choc and J.D. Gross. "The price leader is now reducing a large part of its own chocolate brands," it says confidently in the corresponding announcement. And that prices have now been reduced for the fourth time within eight days. The choice of words is no coincidence, experts say. After all, price leadership today is less a question of calculation than a strategic overall package. With chocolate, the discounters have now taken on the next so-called basic price item for their dispute. This refers to products that are purchased particularly frequently and for which price changes are thus perceived more strongly by consumers than for other product groups, especially since price knowledge is high in each case. In addition to chocolate, these are also the previously contested butter or coffee, milk, pasta and beer. Low prices for private labels and discount campaigns for branded goods in these areas are intended to lure customers into the stores, where they usually buy more than just the decoy products. This then fulfils a mixed calculation with particularly cheap products on the one hand, with which hardly any money can be earned, and on the other hand, marginal assortments with particularly high margins. The attention for the emotional product chocolate, which is an emotional product among consumers, is likely to be particularly high. This is because the popular confectionery has recently become massively more expensive, the classic 100-gram bar, for example, by 70 percent since 2020, according to the Federal Statistical Office. The jumps have been particularly large in the past two years. The reason for this is the sharp rise in cocoa prices. While the average world market price fluctuated between 2000 and 3000 US dollars per ton for a long time, it averaged over 7000 dollars in 2024 and almost 8000 dollars in 2025. At its peak, around 12,000 dollars per ton were even called for at times, also driven by speculators. Retailers and manufacturers have felt the effects directly at the checkout. In any case, 2025 was a bad year for suppliers of chocolate products in this country. Sales in what is by far the largest confectionery segment have slumped by seven percent, reports the Federal Association of the German Confectionery Industry (BDSI). The fact that sales have risen significantly at the same time, specifically by over twelve percent, does not help the industry at all, complains not only the BDSI. "Sales are not the same as profits," explains Andreas Ronken, the managing director of Ritter Sport, for example, with reference to his own balance sheet. At 712 million euros, the company reports almost 18 percent higher sales for 2025, the bottom line is lower sales figures, but above all losses. "The massive cost increases along the entire value chain could not be compensated for by the sales growth," explains Ronken. In recent years, in addition to cocoa, the prices for energy, logistics and packaging have also risen significantly. And despite increased selling prices, it was not possible to pass this on to the trade in full. The fact that the discounters are now dueling over chocolate and noticeably lowering prices - at least for private labels - is likely to register Ronken as well as the rest of the industry with concern. After all, consumers now expect similar developments in branded goods, says Ulrich Zuenelli, Chairman of the Supervisory Board of the confectionery trade association Sweets Global Network. For him, the Aldi-Lidl duel is no surprise. "It is clear and well known that competition in Germany is based on price. So the discounters work on their image wherever possible." Losses are sometimes accepted for this. "Although the market could even give up the price reductions for chocolate at the moment." Zuenelli is alluding to the current price slide for cocoa: While just under 9800 dollars were due at the beginning of 2025, it was still around 6000 dollars at the turn of the year 2026. And currently, the price has even been reduced to 4200 dollars – even if that is still a high level compared to the time before the record highs. "The question is, when did Aldi and Lidl buy cocoa for their own chocolate plants and when did they conclude contracts with additional suppliers," says expert Zuenelli. In fact, many providers are likely to process expensively purchased stocks at present – and some will continue to do so in the coming weeks and months. Lambertz too. The world market leader for so-called autumn and Christmas biscuits such as gingerbread, Printen, dominoes and Co. stocked up months ago in order to be reliably supplied with raw materials, as owner Hermann Bühlbecker reports. "We have signed contracts for the months of May, June and July, when we start producing seasonal items. Because we can't afford to speculate and then suddenly not be sufficiently supplied." Lambertz has to pay the cocoa price at the time of signing the contract, not the price at the time of delivery. Bühlbecker therefore expects difficult negotiations with the retail chains, with whom his management team is already talking in the coming weeks about delivery in the next Christmas business. He sees his products, as well as the articles of other manufacturers of chocolate products, degraded to the "plaything of competitive wrangling". In order to save costs, Lambertz is now also thinking about relocations, as Bühlbecker reports. In particular, products without a geographically protected indication of origin, such as those available for Aachener Printen, Nürnberger Lebkuchen and Dresdner Stollen, could be produced in Poland in the future, where Lambertz already operates two plants. These would be, for example, biscuit mixes or confectionery. "It is becoming increasingly difficult for family businesses to invest in Germany." Read more: Aldi gegen Lidl – die nächste Preisschlacht, um das nächste Produkt - WELT #smartdiscount #germany #aldi #lidl #price #privatelabel #ownbrand #fmcg #pricestrategy #chocolate #inflation #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd #ism #category #kvi #sweets #confectionary #dairy

The retail industry is undergoing a moment of "qualitative change" in China. Retailers such as Costco, Pinduoduo, Aldi, Pangdonglai and Ling shi Hen Mang (Snacks Busy) have risen rapidly through aggressive price advantages, carving up the market share of traditional supermarkets and even traditional e-commerce. As a result, declining performance, store closures, and bankruptcies have become the "new normal" in the retail track. In recent years, Snacks Busy opened 2,000 stores in a short period, with annual sales exceeding 6 billion RMB. Mixue Bingcheng took only a little over a year to leap from 10,000 to 20,000 stores, a milestone that previously took them 20 years to reach. Luckin Coffee used 10-RMB price points to swiftly disrupt the coffee market dominated by Starbucks. Consumers have used their wallets to prove the irresistible pull of low prices. Simultaneously, these emerging companies are restructuring supply chains and operating systems. By providing low-cost, low-price goods, they are forcing the entire industry to transform. This year, Taobao and JD.com reaffirmed their low-price strategies, sparking a new "price war." Compressing costs has become a consensus for traditional supermarkets, while others have begun pivoting to discount store formats. We have enough reason to judge that the Chinese retail industry has entered a "Low-Price Era." "Extreme cost-performance" and "high volume, low margin" have become the true rules of survival. Historically, global experience proves that economic downturns birth low-price retail formats, Walmart and Uniqlo are both products of such environments. However, "low-price retail" differs from simple price-cutting. Its essence lies in establishing a sustainable low-cost operating system, the result of process optimization and efficiency gains. This has sparked two major debates: Authenticity: Do domestic discount and snack stores represent true low-price retail? Some argue their low prices come at the expense of quality, or are fueled by capital-driven growth at a loss. Survival: Can traditional retailers grow through reform? Most insiders believe it is theoretically possible but practically difficult. Traditional models have fixed mechanisms that are hard to change fundamentally. The Golden Age The conditions for low-price retail in China have matured. Professor Chen Liping of Capital University of Economics and Business notes that economic downturns often drive industry revolutions. The supermarket format and Walmart were born from US economic crises; Uniqlo and "Business Supermarkets" emerged after Japan’s growth stagnated in 1995. As consumer spending power and willingness decline, new players with "low cost, low margin, and low price" quickly capture the consumer mindshare. Post-pandemic economic pressure has led consumers to be more rational and price-sensitive. Crucially, reduced spending isn't necessarily "consumption downgrading"; consumers still want quality, just at a lower price. This is supported by: Manufacturing Maturity: Domestic factories can now provide high-quality, cost-effective products. Direct Marketing: Social media and self-media have lowered the cost of brand awareness. Consumers realize that "White Label" (unbranded private label) goods often come from the same factories as Tier-1 brands, and they are no longer willing to pay the "brand premium." The Revolutionaries Since 2020, price-advantaged retailers have exploded. Douyin E-commerce jumped from 10 billion to 1 trillion RMB in scale. Community group buying now reaches 900 million users. In brick-and-mortar, discount formats are booming. Innovation is cannibalizing traditional profit centers. In Changsha, snack stores have replaced supermarkets as the primary channel for milk, outselling them five to one. True low-price retail is defined by the system, not just the price tag: Costco: Profit comes from membership fees, allowing them to keep product margins incredibly low. Aldi (and similar Chinese discount stores e.g. Ottno, NB, FD, HappyMonkey): They lower costs through cash purchases (avoiding debt cycles), private labels, and "Explosive Product" logic (fewer SKUs, higher volume). Operational Efficiency: Using "cut-case" displays (no stocking shelves), forklifts in-store, and coin-operated carts to reduce labor costs. Successful discount stores keep rent and labor at 3% – 5% each, achieving a 3%–5% net profit on only 15% gross margin. Traditional supermarkets usually require 20% gross margin to survive. The Way Out In a loose competitive environment, traditional Chinese retailers didn't make much progress in efficiency. In contrast, Japanese retailers spent 30 years refining global supply chains, for example, growing fruit in Africa to control the cost of 100% apple juice to around 5 RMB per liter. The future of Chinese retail is trending toward: Extreme Cost-Performance: This becomes the primary competitive direction. Fragmentation: After hypermarkets close, the market will split. High-frequency goods will move to professional community stores (fresh food, deli), while low-frequency goods move to malls (Miniso, HotMaxx). Conclusion The low-price era is not the home turf of traditional retailers. The shift from "earning from suppliers" to "earning from products," and from "credit terms" to "cash purchases," requires a total overhaul of organizational structure and incentives. For most traditional retail giants, the "ship is too big to turn," making it difficult to adapt to this new environment in China. #smartdiscount #aldi #discount #china #growth #privatelabel #costco #Pinduoduo #Pangdonglai #LingshiHenMang #competition #price #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #harddiscount #hd #google #twitter #efficiency #lowprice #efficiency #lowcost #capitaluniversity #jdcom #alibaba #meithuan #pupumart #ottno #miniso #hotmaxx #pandonglai

Discount retail chain Chao He Suan (formerly Hema) NB, owned by Alibaba, has launched its first store in South China. This move also marked the moment when the core team defined their product and expansion strategy. Chao He Suan NB has grown to a point where its organizational structure, product development, and supply chain operate largely independently. "The notion that 'premium fruit goes to Hema Fresh (Freshippo) while mid-grade fruit goes to discounter Chao He Suan NB' is no longer accurate," said a representative from Chao He Suan NB. To expand into South China, the brand established dedicated large-scale warehouses in Humen and Machong (Dongguan) supporting three temperature zones — ambient, chilled, and frozen — rather than relying on Hema’s existing infrastructure. Hema has now transitioned to a "Group" operation, with Hema Fresh and Chao He Suan NB acting as two independent business units driving growth. 1. "Pragmatic" Over "Down-Market": Positioning as a Community Value Supermarket While the industry previously viewed Chao He Suan NB as Hema’s "hard discount" format for lower-tier markets, the brand has clarified its positioning: it is a community value supermarket for "pragmatic families." Target Audience: Families who cook daily, are price-sensitive but quality-conscious, and refuse to pay for brand or packaging premiums. The "NB" Identity: NB stands for "Neighbour Business," focusing on the "Neighbour" logic — rooted in the community to serve daily high-frequency needs. Store Format: 600–800 sqm stores located primarily in "Community Malls" or neighbourhood storefronts. 2. The "3 Highs, 3 Lows" Business Model Operating on the hard discount principle, the brand follows a "Three Highs, Three Lows" model: High: Labour efficiency, Sales per sqm, and Product efficiency. Low: Retail price, Gross margin, and Shrinkage/Loss. The store aesthetic is minimalist, featuring "Original Box Display" (selling directly out of shipping cartons) to strip out all unnecessary costs. 3. Product Logic: "Product First, Then Merchant" The brand's core logic for Private Label (PL) development is "Product → Merchant → Supply Chain": Define the Product: Based on user research, determine exactly what the product should be. Find the Merchant: Identify OEM factories that can meet the quality and price standards. Tailored Supply: Create a dedicated, closed-loop supply chain. Currently, Private Label products account for nearly 60% of total sales. 4. Localization of Fresh Food vs. Scalability of Private Label (PL) In the new South China stores, localized products account for over 40% of SKUs. Local Taste: Includes Cantonese roast meat counters (Siu Mei) and local brands (Morning Star milk, Five Rams ice cream). Local Supply: Leafy greens are sourced within 24 hours from farms in South China and Yunnan to meet the "freshness" demands of the local market. PL Scaling: For non-perishables (laundry pods, snacks, craft beer), the brand leverages its national scale to improve quality while keeping prices flat. For example, their laundry pods upgraded from 3-chambers to 5-chambers with improved ingredients at the same price point. 5. Strategy: Offline-First and High Density Chao He Suan NB prioritizes offline foot traffic over online delivery. Why Offline? As platform subsidies disappear, online delivery becomes more expensive. Pragmatic customers are returning to physical stores for better "value-for-money." Community Traffic: The brand focuses heavily on private traffic (community WeChat groups) and high-frequency repurchasing to ensure high inventory turnover and "daily clearance" of fresh goods. #smartdiscount #china #nb #hema #freshhippo #alibaba #assortment #businessmodel #expansion #growth #development #price #image #neighbourhood #privatelabel #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd #ChaoHeSuanNB

Discount Retail Chain Aldi UK has announced plans for 40 new store openings across the country this year. The retailer said these plans will amount to a £370 million investment. The announcement comes as part of Aldi's £1.6 billion two-year investment programme, revealed last year. The plan looks to open 80 new stores across the UK within two years as part of Aldi's ambitions to have a portfolio of 1,500 UK stores. While Aldi has not yet revealed where exactly in the UK it will be opening 40 new stores, the supermarket previously outlined a list of 'required locations' for expansion. This list illustrated 124 sites for the supermarket to look to expand its portfolio to, including eight sites across Greater Manchester. Across Greater Manchester, Aldi stated plans to expand to sites in Manchester, Wigan, Bolton, Bury, Stockport and Salford. Setting out Aldi's plans for growth, Giles Hurley, Chief Executive Officer at Aldi UK and Ireland, said: "Our unwavering commitment is to make high-quality, affordable groceries accessible to everybody. "But we recognise that there are still areas without an Aldi store, so our expansion plans for 2026 are designed to address some of these gaps as we work towards our long-term goal of 1,500 UK stores. We’ve always believed that access to high-quality affordable food is a right, not a privilege, and that’s why it’s our mission to make this a reality for customers up and down the UK." Read more: Aldi to open 40 new stores in 2026 - list of Greater Manchester areas the supermarket wants to expand to - Manchester Evening News #smartdiscount #aldi #uk #expansion #growth #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #twitter #harddiscount #hd