Discount Retail Chain Biedronka Poland gains 20 bps in share and improves margins despite rising wages and weak demand. After Carrefour's departure from Poland, Jerónimo Martins is fulfilling what we explained a month ago, to become strong in Poland. Specifically, the Portuguese distribution chain recorded an impressive 2.5% growth in EBITDA in the third quarter, driven mainly by the like-for-like sales margin in Poland. In this sense, the brand under which Jerónimo operates in Poland is Biedronka, which has managed to balance its growth along with its margins, gaining market share and improving its profitability despite cost pressures. Cash flow turned positive thanks to stronger operations, while Ara and Pingo Doce maintained a good pace of growth. Comments on Poland range from stating that "competition in the food retail sector is intense and overall food consumption is relatively moderate" to that "competitive intensity shows no signs of abating in a food retail market offering moderate growth," Jefferies analysts note. Poland's business lead Jeronimo's growth In this regard, for several quarters, the growing competition in Poland has been a constant concern, with players such as Carrefour (which has now exited the market). A situation that has led Biedronka, the market leader, to intensify its strategies in terms of both pricing and promotions. "Rising labour costs, driven by sharp increases in the minimum wage, have further affected margins. Specifically, the share price has risen by approximately 6%, and the main positive aspect of the third quarter is the ability of the management, Jerónimo Martins, to balance revenue growth with profitability," they add from AlphaValue. The company also achieved a 30 basis point improvement in the EBITDA margin, reflecting the initial benefits of cost reduction initiatives and the moderation of basic basket inflation. Nonetheless, efficiency and cost-saving measures are likely to remain a priority, recovering historical EBITDA margins of 8.5% to 9.0% is a challenge over the next 12 to 24 months. The impact of minimum wage increases is expected to moderate next year, as growth is now based on a higher base. Experts predict that consumer demand will remain weak in the short term, with customers refraining from purchasing higher-quality products despite the improvement in their real incomes. The management of Jerónimo Martins pointed out that the deflationary environment of the previous year, 2024, had negatively affected this indicator; while the current context of low inflation is proving beneficial. Working capital is expected to remain stable, depending on growth in the fourth quarter. Biedronka needs to move forward Biedronka faces a double challenge: low consumer demand and sharply rising labour costs, following Poland's minimum wage rise by 9.2%. While real wages have improved significantly, this has not yet translated into a higher volume of demand for food. Consumers are reluctant to buy higher-quality products, even as non-essential product categories show signs of recovery. Increasing price competition has prompted Biedronka to intensify its promotional activities and price investments to defend its leading position (with a market share of approximately 26%). As for Polish supermarket shares, they have fallen since July 2025, despite the three major players reporting strong second-quarter results, mid-to-high single-digit comparable sales growth, and modest EBITDA margin expansion. However, despite the stagnation in sales volume and constant competition, Biedronka should continue to gain market share, supported by its proven pricing discipline. Jerónimo Martins' strategy, for its Polish supermarket, is to open between 130 and 150 new stores per year, which remains a key strategy to drive growth in a fragmented market. Low shopping basket inflation and improving macroeconomic indicators, including higher consumer confidence and real income growth, should support mid-single-digit sales growth in the coming quarters. A strong performance in the third quarter, with comparable growth of around 4%, an EBITDA margin expansion of 20 basis points and an increase of approximately 15% in net profit (8% above consensus), reinforces AlphaValue's view that management is effectively driving growth while maintaining profitability. Read more: Biedronka consolidates after Carrefour's exit: Jerónimo Martins accelerates in Poland #smartdiscount #biedronka #jm #harddiscount #hd #jeronimomartins #poland #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl's owner, Schwarz, through its IT and digital division, Digits, this week took the first step towards a billionaire investment to build its own data center. According to the announcement, the company will invest 11 billion euros to build a state-of-the-art infrastructure in Lubbenau, in Brandenburg. This will be one of the most advanced centres of its kind in Europe. The first phase of the "Schwarz Digits Data Center", consisting of three modules, is expected to be completed by the end of 2027, as part of the company's strategy to strengthen its digital infrastructure in Germany and Europe.   The data center will run exclusively on green energy during its normal operation, occupying 13 hectares of the former Lübbenau factory site, which has been demolished and the area rewilded. According to the announcement, the project will follow a strategy of revitalization of degraded areas (i.e., the rehabilitation or requalification of existing land or infrastructure) and involved the separation and recycling of more than 20,000 cubic meters of concrete and stone, 110 tons of steel and 20 tons of wood.   The facility will also feature photovoltaic panels that will generate up to 520,000 kWh of renewable energy annually. In the political sphere, the German Minister for Digitalization and State Modernization, Karsten Wildberger, emphasized during the inauguration ceremony that "Germany needs processing power if it wants to compete at a high level in AI. Only with powerful data centers can we use AI applications on a large scale and strengthen our competitiveness. I am pleased that with Schwarz Digits, a German company is investing in its own country." Read more: Lidl owner invests 11 billion in its own data center #smartdiscount #lidl #schwarzgroup #germany #brandenburg #europe #ai #digitalisation #investment #google #data #digits #stackit #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl's parent company the Schwarz Group announced plans for a long-term partnership with Google. The strategic partnership will cover major dimensions for secure and sovereign digital transformation, including best-in-class collaboration and productivity solutions and advanced cyber security offerings in Germany and Europe. “For future viability in the digital age, it is essential to find partners who are truly willing to shape digitization together,” said Gerd Chrzanowski, General Partner Schwarz Group. “In Google, we found a partner that develops joint solutions with us on an equal footing, provides transparent insights and makes clear commitments. We’re looking forward to shaping digital transformation for Germany and Europe together with Google in a transparent, secure and sovereign way.” “This new partnership will enable the companies of Schwarz Group to combine its leadership in digital transformation with Google Cloud’s strengths in productivity, collaboration and security, enabled by our cutting-edge AI,” said Sundar Pichai, CEO of Google and Alphabet. “Together, we are opening up a world of new, sovereign opportunities for European organizations to innovate and build on our joint solutions, accelerating a new era of innovation.” Google Workspace in combination with Schwarz Digits’ Cloud STACKIT The planned partnership will deliver truly secure and sovereign cloud-based collaboration solutions for German and European regulated industries, including financial services, healthcare, and the public sector. As part of the solution, STACKIT will offer customers the option to enable client-side encryption of their Google Workspace data, including sensitive and confidential data in regulated industries, through its own cloud platform, prohibiting third party access, including Google itself. Customers’ data will remain resident within the European Union (EU), with full redundancy offered by backups hosted solely in STACKIT’s European data centers to meet customer demands around data protection, data residency, and data resiliency. “Germany and the EU have until now lacked enterprise-grade cloud collaboration solutions that fully address the sovereignty requirements of regulated industries, including ensuring all data is secured and backed up on local soil with absolutely no opportunity for access by foreign nations or platform providers,” said Rolf Schumann, Co-CEO of Schwarz Digits, the IT- and digital division of Schwarz Group. “Our partnership and new offering with Google Cloud will fill this gap with an entirely new business model.” With client-side encryption, customers have sole control over their encryption keys—and thus complete control over all access to their data, and even Google as a platform provider has no access. This safeguards the sovereignty of not only the companies of Schwarz Group, but also all customers who value the independence of their operations, giving them full confidence that their data is always in their control. Best-in-class offering for digital resilience with Google Cloud and XM Cyber The partnership also addresses collaboration in the field of cyber security, with a goal of helping customers establish a strong foundation for cyber readiness and resilience. First, Google Cloud’s security solutions will be integrated with those of XM Cyber, Schwarz Digits’ hybrid cloud security company, and the joint offering will be distributed to customers via the Google Cloud Marketplace. These advanced security solutions will help German and European organizations, particularly those in highly regulated industries, raise the bar on their enterprise and multicloud security. In addition, XM Cyber’s Continuous Exposure Management will be embedded into the sovereign Google Workspace solution offered to European enterprises. “This partnership changes the game for regulated industry players in Europe by removing the sovereignty and security concerns that often hold back more ambitious adoption of the cloud for productivity and collaboration,” said Thomas Kurian, CEO, Google Cloud. “Our alliance with companies of Schwarz Group will enable entire industries in Europe to deliver digital innovation with security and compliance at its core.” Workforce transformation at continental scale The companies of Schwarz Group itself will adopt a similar approach as it transitions its global office workforce to the Google Workspace solution. This will ensure that critical workplace data can be protected against third party access including foreign government institutions, and also transferred to alternate service providers if needed. “Switching to Google Workspace is an important step for us out of legacy and into innovative, efficient and future proof cloud-based collaboration,” said Christian Müller, Co-CEO of Schwarz Digits. “Google Workspace is the most secure and reliable productivity platform in the industry today, and we expect our organization-wide migration to have significant flow-on benefits to all areas of operations from simplifying IT management to rendering our point-of-sale workflows significantly more efficient.” Read more: Companies of Schwarz Group and Google to Sign Partnership #smartdiscount #schwarzgroup #lidl #digitalization #google #germany #europe #cloud #stackit #eu #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #hd #harddiscount #productivity #workspace

Discount Retail Chain Lidl USA opened its first store in the United States, less than a decade ago, bringing its European grocery acumen and a focus on private label to this side of the Atlantic Ocean. Since the doors opened at the grocer’s initial locations in North Carolina and Virginia in 2017, the ride has been a bumpy one at times and included a management change in 2023 when  Joel Rampoldt was named CEO and officially took over in September of that year. Now, more than two years as the Lidl US chief executive, Rampoldt said the company has made strides to improve its operations and provide its shoppers with quality customer service. “I know some of you are probably listening to this thinking, ‘well, it hasn’t felt like that in the past,’” he said during his keynote address to open the  2025 PLMA Private Label Trade Show in Chicago. “Some of you who have done business with us wouldn’t say that we acted like we wanted Lidl to be your first choice. But we’re very serious about this.” Looking to mirror Lidl’s European operations, Rampoldt said the company invests in its suppliers and rewards performance with growth and loyalty. This investment, among other things, helps product manufacturers increase their capabilities and allows Lidl to benefit from that growth. “That’s the way that we want to do business with all manufacturers,” he said. Noting that private brands are “life and death” for Lidl, the company regularly stocks about 3,300 core items, with about 80% of those products private label. This allows Lidl to offer an assortment that delivers the best price and best quality, according to Rampoldt. “We don’t win on choice, and we don’t offer everything,” he explained. “We have fresh bakeries in all of our stores, but you'll probably never see a full-service deli in our stores. You'll probably never see a fishmonger. We have to keep everything very simple, easy to execute, and easy to operate.” While offering an assortment that is more limited than many of its competitors,  Lidl does work to highlight features that differentiates it from others in the grocery retail space. This includes a focus on fresh categories, which Lidl utilizes to make a statement to shoppers as they walk through the doors. “When you walk into one of our stores, typically the first thing that you'll see is fresh fruits and vegetables, fresh flowers, and fresh bakery,” Rampoldt said. “Immediately beyond that will be fresh protein. We use the fresh departments to signal quality to our customers. These categories turn quickly, and they have to always be fresh. That signals that everything else in the store is going to be high quality.” Throughout 2025, Lidl has ramped up its store expansion efforts and has maintained a focus on key East Coast markets. With the company approaching the 200-store mark, that geographic plan will continue into 2026, with the company focused on store expansion in New York City, Atlanta, and the area in and around Washington, D.C., which includes Maryland, Virginia, and Delaware. Currently, there are no plans for Lidl to expand beyond its Eastern U.S. roots. “We serve our stores from three distribution centers on the East Coast,” Rampoldt said. “We’re opening stores faster, we’re growing units, and keeping our price competitiveness. We compete against every different kind of retailer, but our price competitiveness is extraordinarily good versus all of them.” Read more: Lidl US Pledges Vendor Support As It Expands East Coast Presence | Store Brands #smartdiscount #usalidl #expansion #fresh #growth #development #privatelabel #ownbrand #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #harddiscount #hd

Discount Variety Retail Chain Action is expanding at a rapid pace in Germany. Internal documents show ambitious profit targets and how Action became a money-printing machine for the investor 3i. Action now operates 3190 stores in 14 European countries. The non-food discounter is expanding at a rapid pace. Year after year, Action increased its turnover to almost 14 billion euros (2024), conquering new countries again and again, most recently Switzerland, Romania and Portugal. For its majority owner 3i and his manager action is about what you would call a home run in baseball. Arguably one of the most lucrative private equity deals of all time. A once-in-a-lifetime investment. In 2011, according to the annual report, the British financial investor invested 114 million pounds in Action with its 245 branches at the time. Today, more than 14 years later, 3i values its stake in Action at just under £21 billion, 188 times. But what is the formula for success behind the numbers? Why do the Dutch turn over four to five times as much as rivals like Tedi or Kik on the same area? And what are the long-term goals of Action and the private equity firm 3i, which has held its stake in Action for more than 14 years now? The Handelsblatt has spent weeks researching Action and its owners, evaluating internal documents and talking to insiders. They provide insights into the strategy of a profit machine and show who earns how much from it. Success with the Aldi principle The Dutchmen Gerard Deen and Rob Wagemaker founded Action in 1993. The two friends converted their junk shop in Enkhuizen, North Holland, into the first action market. They adapted the discount concept as once invented by Aldi founders Karl and Theo Albrecht in Germany in the 1950s: few products, low prices, efficient logistics. But while Aldi and Lidl are also developing their own real estate, the Action founders refrained from buying in order to tie up less capital. Instead, they opened locations by leasing space that became available. "A fundamental decision was made early on not to set up our own project development," says an ex-Action manager. In 2009, the founders ventured into Germany, opening the first branch in Schüttorf near the German-Dutch border, later in Osnabrück (2010) and in Cloppenburg (2011). But the big expansion only started when the British financial investor 3i took over the majority of Action in 2011. Step by step, the low-cost retailer expanded its branch network. In Germany, initially geographically limited in the Ruhr area, in order to keep the distances to the central warehouse in Zwaagdijk in North Holland short. The Dutch set themselves ambitious goals, looking for affordable rental space everywhere, preferably retail parks on the outskirts of the city with spacious parking areas. But because administrative law in Germany was particularly complicated and the expansion expertise was too low, the claim of the financial investor and the reality of Action diverged. "Their expansion goals were too ambitious, the location reviews too superficial," recalls Uwe Hillemeyer, who accompanied Action's expansion as a real estate agent and brokered numerous spaces to the low-cost retailer. "In Germany, it happens that there is an official somewhere who does not rent because Action wants to offer seven square meters of stationery, but this is not provided for in the development plan." But later, according to Hillemeyer, Action professionalized its expansion in Germany – with experienced people and clearer processes. In 2016, Action began to expand nationwide. In 2017, the expansion reached its absolute peak with 80 new stores in one year. Sales in the stores grew and Action also began to open branches in major German cities such as Munich, Berlin and Düsseldorf. The motto: Returns first At the forefront of Action is Hajir Hajji. The Dutchwoman, 45 years old, started stocking shelves at Action at the age of 17. She worked her way up step by step. She later managed the branch operations, then the retail area. Hajji was responsible for purchasing, advertising and logistics. She knows, it is said, action like no one else. She has been managing the group since 2022. Insiders say her management style is centralist, but this has less to do with Hajji as a person and more to do with Action's strategy, which has always been based on efficiency, clear guidelines and fixed indicators. The stores are standardized to just under 1000 square meters, the delivery comes inexpensively (also because it is not perishable) in double-decker trucks. Action offers almost 6000 products, 95 percent of the assortment is the same in every store, in all countries. Whether a branch is opened at all is ultimately decided not by the local manager in Poland, Switzerland or Germany, but by the headquarters in Zwaagdijk, insiders report to Handelsblatt. The managers in the states would have to orient themselves to strict targets for new branches. The catchment area must have at least 30,000 inhabitants, and a maximum of five percent of the expected turnover may be spent on rent. The radius of the catchment area varies, in metropolitan areas a few hundred meters around the branch are sometimes enough to get the necessary number. Locations that did not meet these requirements were excluded from the outset, at least in the early days of Action. "People have understood that you have no chance of finding a branch in Munich if you only estimate five percent of the costs for rent," says one who accompanied Action's expansion as a manager. But on the other hand, the company management and 3i strictly monitor how much profit each branch yields. The motto: Returns first. "The value of the company is all the higher the better the economic indicators." "Almost no one can do that in retail" According to insiders, Action plans to turn over almost four and a half million euros per branch in rural areas. In top urban locations, the figure is up to eight million. At the request of the Handelsblatt, Action denies the figures, looking at each store individually: "We have data from more than 3000 stores and determine our net sales expectation based on the type of location," says a spokeswoman. How high the Dutch demand for returns is shown by a profit calculation available to Handelsblatt. For a location in northern Germany, the low-cost retailer planned according to internal calculations with a contribution margin of 15.5 percent – after deduction of personnel, rental and other operating costs. According to the document, sales should increase by almost 20 percent within three years. "Almost no one in retail can do that," says Carsten Kortum, a professor of commerce at the Baden-Württemberg Cooperative State University, who evaluated the figures for the Handelsblatt. Action does not comment on the figures, but emphasizes that not a single branch is making losses. The core of Action's success, according to trade professor Kortum, is the high profitability per space. "Action manages to achieve four or five times the sales of rivals such as Tedi or Kik in the same area," says Kortum, who headed the non-food division at Lidl for several years. The secret lies in the assortment: According to Kortum, the drivers of this profit machine are the "products of daily use", food, household care, pet food and personal care articles. In other words, goods that customers know well, buy spontaneously and bind to the new retailer. Experts also speak of "fast-moving consumer goods" because the items can be sold in large quantities and at comparatively low prices. "This brings an enormous gross turnover," says Kortum. One and a half billion pounds for 81 managers When the financial investor 3i joined Action, no one expected it to become one of the most successful private equity transactions in history. "You didn't know that you would come across a vein of gold," says an ex-manager of 3i. Actually, the British's ambition was to exit after three to five years: a time frame typical of the private equity world to increase the value of the investment and sell it again at a profit. Today, the stake has brought some managers life-changing wealth. After all, those who work in the private equity industry participate in the return on an investment. In the industry, this is referred to as "carried interest". In the case of 3i, there were 81 current and former managers who, thanks to Action, repeatedly received parts of their profit participation in tranches over the years. 3i bought the first carry from its employees in 2020. A former 3i manager, who wishes to remain anonymous, makes it concrete: "3i distributed almost half a billion British pounds to its employees at the time." Over several stages, the managers received more and more millions of dollars. In the 2025 financial year, 3i bought the remaining profit shares from the 81 managers. If you go through the 3i annual reports from 2020 to 2025, you come to a sum of around one and a half billion pounds. Private Equity as a Retailer In the meantime, 3i has been invested in Action for a good 14 years. Over the years, the British investor has repeatedly increased his stake; meanwhile, 3i holds almost 57 percent of Action. The discounter represents 76 percent of the fair value of the investor's private equity portfolio. But in the meantime, some people are wondering whether the success of 3i doesn't depend too much on the success of Action. "If you invest in 3i shares, you are buying the stock of a retailer," says an ex-manager. "Investors are looking for private equity exposure, i.e. diversification across different investments." Others believe Action's $21 billion valuation is exaggerated. Last week, 3i's share price collapsed. Investors feared a revaluation of the discounter after Action reported lower sales growth than planned for the third quarter. As early as September 2024, Shadowfall, the British hedge fund that had also bet against Wirecard, had built up a multi-million short position against 3i because it considers Action's valuation to be excessive. Investors, management and the outside world are asking themselves when the time has come for 3i to sell its stake: whether by IPO, partial sale or via the entry of a new investor. In order for a future exit to be as lucrative as possible for 3i and its co-investors, Action needs a new growth story that makes investors dream of an even rosier future. A narrative could be an expansion of Action into the USA. And initial indications suggest that Action could soon take this step. In July 2024, Action raised $1.5 billion in debt financing through the U.S. market. "That was a huge issue for us," says an insider. Although the loan is not intended for US expansion, winning over the American capital market opens up "huge opportunities" for 3i and Action. Read more: Discounter: So überrollt der Billighändler Action den Handel #smartdiscount #action #growth #germany #netherlands #aldi #lidl #development #expansion #valuation #3igroup #ipo #listing #shadowfall #drc #discount #retail #consulting #discountretail #disocuntretailconsulting #retailconsulting #google #variety

Discount Retail Chain Lidl France buys 19 Auchan stores. The French Competition Authority has just validated Lidl's acquisition of 19 Auchan stores. The German discounter had therefore positioned itself to buy the Auchan stores. To confirm this acquisition, it was necessary to wait for the validation of the transaction by the Competition Authority. It was indeed required to ensure that these store acquisitions did not reduce price competition and local consumer choice. The French authorities considered that this operation "is not likely to harm competition". Here is the list of the 19 stores that have been "Auchan Supermarché" so far and that will become Lidl. 8 of them also have an adjoining gas station. Antibes - Palais Congrès (Alpes-Maritimes, 06) Cannes (Alpes-Maritimes, 06), with a petrol station. Bordeaux - Benauge (Gironde, 33), with a petrol station. Bordeaux - Grand Parc (Gironde, 33) Gradignan - Malartic (Gironde, 33) Grabels (Hérault, 34), with a petrol station. Saint Pierre des Corps (Indre-et-Loire, 37) Voiron (Isère, 38), with a petrol station. Grenoble - Perrot (Isère, 38) Marquette-lez-Lille (Nord, 59) Noyelles-lès-Vermelles (Pas-de-Calais, 62), with a petrol station. Lyon - Duchère (Rhône, 69) Lyon - United States (Rhône, 69) Paris - Vaugirard (75) Nemours (Seine-et-Marne, 77), with a service station. Carrières-sur-Seine (Yvelines, 78) Toulon - Traverse Arnaud (Var, 83), with a petrol station. Saint-Raphaël (Var, 83), with a petrol station. L'Isle-Adam (Val-d'Oise, 95) 1,600 Lidl stores in France All these stores should therefore close for a while soon, while work is carried out so that they can change their name. But soon, if you live near one of these stores, you will have a brand new Lidl. These 19 supermarkets represent a sales area of 33,760m² and will join the 1,600 other stores that the German hard-discounter already has in France. Of these points of sale, nine had been taken over by Auchan from the Casino group in 2024, and ten belong to its historic park. Read more: Lidl rachète 19 supermarchés à Auchan: découvrez la liste des magasins #smartdiscount #lidl #france #auchan #acquisition #stores #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #harddiscount #hd

Discount Retail Chain Aldi USA may be grabbing headlines, but retailers like Grocery Outlet and Lidl are still struggling to capitalize on a macroeconomic environment that’s very favorable for them. Consumers are beyond tired of paying stubbornly high prices for everyday essentials and are willing to shop around at various retailers to find the right deals. The turmoil surrounding the government shutdown and the SNAP program could end up pushing millions of shoppers to trade out of their current grocery stores and into ones that offer the lowest prices in their market. Consumer anxiety isn’t likely to let up anytime soon. The closely watched consumer sentiment index from the University of Michigan reached its lowest point since 2022 this month. The index of 50.3 is nearly 30% lower than last November. So are discount grocers ready to capitalize on this macroeconomic environment? For the most part, no. Aldi certainly seems prepared, having spent the past several years transforming its stores into smart, tidy places that are the supermarket equivalent of what Cliff’s Notes are to a 500-page novel. Its approach seems to be working, and it’s pressing its advantage with an ambitious expansion plan , revamped social media strategy and private label rebrand . At the moment Aldi has a US market share of 4% with 2,500 stores. But competitors don’t yet appear to be in fighting form, and that could cost them dearly over the long run. Grocery Outlet last week posted anemic comps growth of just over 1% during its third quarter. That’s disappointing for a company that, at least on its surface, has a compelling selling proposition focused on national brands and a treasure hunt shopping experience. Lidl, the German hard discounter that opened its first U.S. stores more than eight years ago, should also be seizing the opportunity. But it’s still trying to right the ship after initially thinking it could steam across America with the same strategy that succeeded in Europe. Perhaps the biggest indicator that something was amiss: A lot of consumers didn’t even know it was a grocery store . CEO Joel Rampoldt, the latest in a revolving door of chief executives, is making common-sense changes, but the company still isn’t viewed as a major competitor by the rest of the industry. Lidl USA has 225 stores at the East coast and a US market share of 0.5%. Save A Lot has likewise struggled to set a consistent strategy for its franchisees amid executive turnover and other headwinds in recent years. It’s all a reminder that discount grocers, while a growing threat in the industry, are still very much a work in progress. Save-a-Lot has around 850 stores and a US market share of 0.4% in the Midwest, Southeast and mid-Atlantic. #smartdiscount #usa #development #aldi #lidl #savealot #growth #expansion #stepbystep #potential #drc #discount #retail #consulting #discountretailconsulting #discountretail #retailconsulting #google #hd #harddiscount #format

Discount Retail Chain Lidl strengthened its profitability despite slowing sales growth. The discounter's international operations increased the net margin to 2.4% and achieved a record net profit of €2.3 billion in the 2024/2025 financial year. The increase in gross margin and the reduction in debt offset the pressure caused by higher labour and financing costs. Central and South-Eastern Europe became Lidl's most profitable region, generating almost half of the total profit. Lidl has returned to higher profitability. After two years of turbulence, Lidl is once again on a more solid financial footing. According to recent data from the balance sheet published by the Lidl Stiftung for the financial year 2024/2025 (which ends in February), the Schwarz Group discounter increased its net profit margin from 2.1 to 2.4% in the reporting period. In absolute terms, net profit increased by more than €400 million to €2.3 billion. Net income increased by 6.9% to €94.7 billion, marking the slowest growth since the beginning of the inflationary period, in the 2022/2023 financial year. The total figures are lower than the consolidated net income of the Schwarz Group of €132.1 billion, as the Lidl Stiftung does not include the full operations in Germany and France. Profitability is recovering as margins improve Behind the figures is a discreet recovery in two key areas. One of the two cost factors that have affected profitability in recent years, gross margin, improved by 0.7 percentage points, from 24.5 to 25.2%, growing almost twice as fast as net income. Before the onset of inflation, in 2021, this indicator was 26.5%.The second factor, net interest payments on loans, stabilized at a high level. Consolidated net interest expenses were capped at €762 million, after €752 million in the previous year. However, financing costs continue to weigh significantly on revenues, consuming around €600 million of potential profit, up sharply from just over €150 million in 2021 and before. In this area, Lidl has taken firm corrective measures: the discounter reduced its net debt by 20%, from €12.5 billion in 2023/2024 to €9.9 billion in the last financial year.Closely related to interest payments is capital locked in stocks. Lidl has also been working on improving inventory turnover. Although year-end inventories increased by about 15%, suggesting a slower turnover, the company notes in the report that "the average inventory level decreased by 6.9% and the average inventory turnover rate increased to 11.3", which indicates a more efficient management of flows, despite higher ending balances. The increase in salaries tests Lidl's efficiency efforts On the cost side, the positive effects of a higher trading margin were partially offset by a noticeable increase in personnel expenses, which increased by 0.4 percentage points to 8.8% of revenues. However, the previous level of 8.4% had been the best result recorded by the Lidl Stiftung in recent years. In 2021, personnel costs still accounted for 9.4% of net revenue.Since 2023, minimum and collectively bargained wages have risen faster than shelf prices in many European markets, leading to a structural increase in labor costs across the industry. Lidl, however, continued to implement cost control measures. During the reporting period, the discounter expanded the deployment of electronic shelf labels and self-service cash registers across Europe to increase operational efficiency. Therefore, improving the company's profitability mainly comes from strict operational discipline rather than increasing work efficiency. Central and South-Eastern Europe remains a key pillar of profitability Beyond the improvement at the group level, Lidl's profitability is anchored in Central and South-Eastern Europe, with the analyzed region stretching from Lithuania and Poland to Serbia. The nine markets included in the analysis generated €25.2 billion in net income, an increase of 10.9% calculated on the basis of average annual euro rates, representing 26.6% of Lidl Stiftung's consolidated sales. Their combined net profit of €1.0 billion accounted for almost 44% of the total gain. With a net margin of 4.0%, almost double the group average of 2.4%, the region clearly stands out as Lidl's profit engine in the international portfolio.In reality, the share of emerging markets in Europe in Lidl's operations would be even higher. The Czech Republic, usually a key contributor to Lidl's ETUCE operations, is excluded from the 2024 analysis because Lidl Česká republika changed its legal form in 2023, a change accompanied by a change in the reporting period, resulting in a shortened financial year of ten months. Full data for 2024 is not yet available. If the Czech results of 2022 were used as a benchmark, the region's share of the Lidl Stiftung's consolidated revenue would increase to almost a third, and net profit to more than half of total profit – further underlining the strategic importance of these markets in Lidl's European network. Poland regional leader Poland is Lidl's largest market in the region and the fourth largest in the group, after Germany, the United Kingdom and France. The country generated net revenues of €9.6 billion, representing an increase of 8.9% in local currency, and achieved a net profit of €390 million, corresponding to a margin of 4.1%. Romania follows with almost 5 billion euros in sales, registering a 10.5% increase in revenues and a net profit of 245 million euros. With a margin of 4.9%, Romania, along with Croatia, is among the most profitable subsidiaries of Lidl. The other markets included in the analysis – Slovakia, Slovenia, Croatia, Serbia and Lithuania – all show solid profitability and steady revenue evolution. Although Lidl has reduced investment in expanding its store network in some of these countries in recent years, Hungary and Bulgaria have continued to record double-digit growth rates in local currencies, underscoring the region's continued momentum. Source: Sebastian Rennack and Modern Buyer Read more: Lidl's profitability grows internationally, driven by the markets of Central and South-Eastern Europe - ModernBuyer - Revista Especialistas în Procurtii #smartdiscount #lidl #growth #revenue #profitability #europe #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #harddiscount #hd

Discount Retail Chain are strengthening their position and already control 43 percent of the retail market in Poland. What can slow down their further expansion? What are the prospects for supermarkets, hypermarkets and small formats? These questions are answered by Szymon Mordasiewicz, Managing Director at YouGov Poland. Is there a place for a real supermarket in Poland today, one with a wide gastronomic offer and ready meals? Szymon Mordasiewicz, Managing Director at YouGov "This question boils down to the question: should we copy foreign models or rather listen to the needs of the local consumer? I had the opportunity to observe various business models, both in the East and the West. I am convinced that we have no reason to be complex. Polish stores are tailored to the expectations of domestic customers and offer a great assortment. If there is no gastronomic offer in some of them, it may mean that there is no real demand for it. There is no point in thoughtlessly imitating Korean or Japanese formats, because each culture has its own specificity." The German market shows that supermarkets can compete with discounters... The question remains why? Perhaps a given sign had a better offer, but is it really a matter of format? Today, we refer to Biedronka or Lidl as discounters, because in this way it is easier for us to describe this specific business model. The boundaries between retail formats are becoming increasingly blurred. Supermarkets and hypermarkets are currently looking for new strategies, and the direction of change is set by Biedronka, Lidl and Żabka. "An example is the Dino chain. Although it is not based on an innovative format, it is growing dynamically, because it is present where it is really needed. It offers good prices and effectively takes volume from a small format. So he has his own recipe for growth. It is worth emphasizing here that Polish trade is very well organized. We have nothing to be ashamed of it is an innovative, modern sector that effectively meets the needs of consumers. Discounters already have 43 percent of the market. And what next? Is there a limit to their expansion? "A lot depends on the policy of producers, who apply different levels of margins, that differentiate in discount stores, others in small formats, and still others in supermarkets. On the one hand, they can enjoy a dynamic increase in sales in discounters and profits resulting from huge volumes. However, more and more companies are recognizing that this is at the expense of not only margins, but also a significant reduction in the assortment. It is worth asking what will happen if the market becomes similar to the Swiss model, in which the two dominant chains, COOP and Migros, control over 70 percent of the market? And what if, in a dozen or so years, which is not an unrealistic scenario at all, two or three main players remain on the market, and small-format stores practically disappear? "Of course, this does not mean that the entire small-format segment is at risk. An example of a chain that has done a great job is Żabka. It operates in a different market segment, carries out other purchasing missions and is able to defend itself effectively. However, there are many networks that require support on many levels, especially when working with independent entrepreneurs. It is often necessary to explain that if a retailer undertakes to carry out a promotion, he cannot sell the goods at a regular price, just to maintain a margin. In the long run, this is not beneficial. If there is no cooperation between the manufacturer and the retailer, whether it is a franchise operator or a purchasing group, then the small format will have more and more difficulties, and discounters will continue to dominate the market. And what future awaits hypermarkets? "Today, consumers expect convenience above all. They want to have a store nearby and be able to make quick purchases, even if it involves a smaller selection of products. The trend of "proximity", which intensified during the pandemic, seems to be permanently entrenched. Only about 2 percent of all customers are so-called "hypermarket heroes". This channel has been facing challenges for a long time, as consumers do not want to make large purchases in large-scale outlets. This is especially important in the context of location. Shops in shopping malls, often far from the city centre, are losing their importance. "Of course, hypermarkets will not disappear from the market and will continue to generate sales, but they will no longer be a channel of growth. The glory years are behind them. I remember that 15 years ago we said that hypermarkets and discount stores would displace the small format from the market. Today, this role has been taken over by discount stores and supermarkets. The small format can still defend itself, but above all thanks to the franchise model. I think that the further path of hypermarkets will be towards reducing the sales area. "Regardless of the sources, the data are consistent and confirm the same trend for the hypermarket format. From the perspective of households, a decrease in purchases by 0.8 percentage points was recorded last year, from 9.1 percent to 8.3 percent. These indicators have remained below 10 percent for a long time. Across the channel, the value of purchases fell by 2 percent, while the overall market grew by 7.5 percent. This is a huge change, which shows that the format of hypermarkets and large-format stores has exhausted its potential. Read more: Discounters already have 43% of the market. Is there a limit to their expansion? #smartdiscount #poland #marketshare #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #harddiscount #hd

Discount Retail Chain Lidl Hungary wants to reach customers from small towns and rural areas. The chain is increasingly setting up full-fledged retail outlets in such locations, but now it is launching a new initiative: stores on four wheels that will reach places where residents are many kilometers away from the nearest supermarkets. The project has just started in Hungary, and if it proves successful, it will most likely be transplanted to other countries. During one of my field visits, on the way between two stores, a question arose in me: how could we reach people living in smaller towns, where there are no Lidl stores, and shopping is often difficult? From this the idea was born, and a few weeks later, with a team of ten enthusiastic people, we started working on our mobile store project "Lidl on four wheels", recalls Zita Szlavikovics, CEO Lidl Hungary. This project has just seen the light of day. Lidl in the car version has embarked on a 25-day tour and has already visited the first towns, and ultimately this autumn it will reach 48 rural locations in Hungary (this is the first country where Lidl has launched mobile stores). Thanks to this, the discount chain will reach about 28,000 people, who are even 20-30 km away from the nearest supermarkets, we read in the "European Supermarket Magazine". The mobile Lidl will travel in a "convoy" - it will be accompanied by a delivery vehicle, which is to enable quick replenishment of stocks. Mobile stores are to operate every day, usually coming to one or two towns and staying there for a few hours. Locals will find Lidl on four wheels, usually in the main square or near the church. Visits to the unusual Lidl will even be reported by... local authorities. "It is incredibly inspiring to see how much joy and curiosity this new solution arouses among the residents. Some came just to watch, others specifically to shop, and the children watched the new attraction of their village with interest", says Zita Szlavikovics, summarizing the visit at the second stop on the route of the mobile Lidl (the town of Lovas). Modest assortment of mobile Lidl Only 80 products will be available for purchase in Lidl's mobile stores. The assortment includes fresh vegetables and fruits, dairy, dry products and frozen foods. The prices are to be identical to those in the regular discount stores of the German chain in Hungary. As we read, the chain wants not only to reach the inhabitants of the villages, but also "to allow them to get to know Lidl products", which they may not associate due to their distance from stationary stores. Lidl declares that the project has been constructed in such a way as not to cannibalize sales in physical stores. According to "ESM", as many as 70 employees of the Hungarian Lidl were involved in the entire project. These are people responsible, among m.in , for concept development, logistics and customer service. Each minibus will be managed by two or three employees on site. After the end of the autumn tour, Lidl will summarize the first edition of the project and decide whether it is worth repeating it next spring. Lidl is nothing compared to ABC on Wheels Szlavikovics, quoted by ESM, expressed hope that other retail chains will follow in Lidl's footsteps by launching their own mobile stores. Let us recall that in Poland, the Eurocash Group launched a similar initiative years ago. We are talking about ABC on Wheels. In March 2022, there were about 130 mobile stores serving rural areas, and the plans for the development of the initiative were bold. However, two years later, the number of ABC stores on Wheels dropped to 65. Lidl launches its first mobile stores. The chain wants to reach new customers #smartdiscount #lidl #eurocash #abconwheels #hungary #poland #test #mobile #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #harddiscount #hd

Discount Variety Retail Chain Action, the non-food discounter, continued to deliver growth across Europe in the third quarter of 2025, despite softening consumer sentiment in Europe. Nine-month net sales grew to €11.2 billion, up 17.4% from 2024. Like-for-like sales growth was 6.3%, primarily driven by customer growth. Action stores once more delivered strong customer growth with an especially strong performance in Italy and Spain. Action’s summer season assortment, from picnic ware to holiday necessities, also performed well. Like-for-like sales growth was impacted however by softening consumer sentiment, particularly in France. “Customers across Europe continue to appreciate Action for what we do best: offer good quality products at the lowest price. Their love for Action is clearly visible from one number: the number of customers who shop in our stores. So far this year, we welcomed 20.6 million customers on average to our stores every week, up from 20.2 million,” comments Hajir Hajji, CEO Action. Action is grateful to have received numerous customer and product awards recently. Action was honoured with the Golden Scaler 2025 Award as the fastest-growing company in the Netherlands, and is especially proud of winning the consumer awards Winkelketen van het Jaar (‘Retail Chain of the Year’) and Retailer van het Jaar (‘Retailer of the Year’) in the Netherlands, the country where Action began in 1993. In addition, Action was also named Bester Händler des Jahres (‘Best Retailer of the Year’) in two categories in both Germany and Austria, and received Migliore Insegna 2025 (‘Best Brand of 2025’) in Italy in the non-food discount category. Store expansion: adding approximately 380 stores in 2025 and launch in Romania On 24 September, Action opened its first store in Romania, in Pitești, marking the start of operations in its 14th market. Since then, Action added four more stores already. The initial results are fully in line with expectations. In total, Action added 221 stores in the first nine months of 2025 across all 14 Action markets. Action is now on track to add approximately 380 stores in 2025, outperforming its original target of 370 stores. In the third quarter, Action also welcomed another customer milestone: the Action app has been downloaded more than 10 million times. The Action app was introduced in 2021 in the Netherlands and is now available in all Action markets. The app offers customers first-hand information on Action products, highlighting weekly promotions and new products, and providing access to favourites lists, recommendations and in-app store receipts. Action’s employee engagement continues to increase Over the summer, Action conducted its biennial employee engagement survey. Action achieved a record response rate of more than 90%. The company finds it important to hear the voice of each and every colleague, enabling everyone to complete the survey during work hours. Action’s company-wide engagement improved compared to the previous survey, and again exceeded relevant engagement benchmarks. “Action employees are the heart of our company. They focus on putting our customers first, welcoming them to our stores every single day,” says Hajir Hajji, Action CEO. “We highly appreciate their feedback, allowing us to improve our company constantly. The results of the survey underline the commitme nt of our colleagues to help our customers in the best way possible.” Read more: Sales growth Action across Europe continues - Action #smartdiscount #action #netherlands #marketdevelopment #europe #expansion #ebitda #revenues #success #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #harddiscount #nonfood #hd #google

Discount Retail Chain Tiendas 3B Bolivia was awarded two Effie Bolivia 2025 awards in the categories David vs. Goliath and Retail, for its contribution to the transformation of national retail and its commitment to real savings. Recognized worldwide as the "Oscars of marketing and effective communication", the Effie Awards reward ideas that achieve real results. Obtaining two awards in such competitive categories, and with just two years of operation in the country, represents a historic milestone for the company and for Bolivian retail. Since its arrival, Tiendas 3B has made a clear promise: that every Bolivian can fill his or her table by spending less, without sacrificing quality. This promise is reflected in its low-price model, hundreds of unbeatable offerings, and a strong own-brand strategy that are already a favorite of its customers: San Felipe in food and beverages, Mr. Power in cleaning and home care, and Sissu in toilet paper and napkins. "Beyond the awards, what really fills us with pride is to see how thousands of families trust us every day to take care of their pockets. We see it in the smile and surprise of our customers every time they discover how much they can save. In addition, it is an additional pride to be the only 100% Bolivian commercial company among the winners this year. While other companies belong to large international holdings, Tiendas 3B was born and raised in Bolivia, with its heart set on serving Bolivian families. This recognition also celebrates the local talent and effort that has led us to this achievement," said Andrés Zamora, Marketing and Customer Experience Manager of Tiendas 3B. In a challenging economic context, the brand demonstrated that saving is not only a business strategy, but a form of well-being, hope and progress for Bolivian families. During 2025, the chain tripled its year-on-year sales, increased its customer satisfaction and loyalty indicators, and consolidated itself as the preferred place to buy essential products at the best price in the country, said Alfonso Kreidler, Executive President of Tiendas 3B. "The real achievement is not only in the numbers, but in the trust built with each neighbor who chooses to truly save. Our commitment is to continue growing without losing the essence: to be close to the people," added Juan José Landívar, General Manager of Tiendas 3B. With 46 stores in Santa Cruz and national expansion plans, Tiendas 3B remains firm in its purpose of generating savings and well-being for Bolivian families. Read more: Savings also inspire: 3B Stores wins two Effie Awards for transforming the way people shop in Bolivia #smartdiscount #tiendas3b #bolivia #mexico #listed #nyse #expansion #growth #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #harddiscount #hd #google