Discount Retail Chain Lidl USA is preparing to open a trio of stores next week and another in mid-August as it continues to grow its stateside fleet. Lidl US is having a busy summer debuting stores that further densify its presence in existing East Coast markets.  Lidl has four upcoming store openings, including July and August 2025. The grocer will debut in Bethesda, Maryland , and Hackensack, New Jersey , Lower East Side of Manhattan in New York City, and Bowie, Maryland. Lidl US has announced nine new stores so far in 2025 The grocer’s new locations have focused on the Mid-Atlantic region. Lidl has already opened five stores earlier this year, according to press releases, including two in New York City’s borough of Brooklyn, two in New Jersey and one in Delaware. While rival discounter Aldi is building up its U.S. presence from coast to coast, Lidl has focused in recent years on densifying the East Coast, mainly by opening stores in metropolitan areas where it has established a foothold.  A year ago, Lidl operated about 170 stores in nine states and Washington, D.C. Currently, Lidl runs more than 185 locations across those same states.  Lidl US’ footprint As of July 21, 2025, the grocer’s footprint extends from New York to Georgia. Lidl’s foot traffic outpaced visits to stores run by other food retailers in the first half of this year, with a year-over-year visit increase of 4.9%, compared with the overall segment’s 1.5% increase, Placer.ai said in a recent blog post . Each month from January to May, Lidl saw year-over-year increases in visits ranging from 2.6% to 6.9%, well above the grocery industry average, Placer.ai found.  Since 2019, Lidl’s customer base has shifted. The share of suburban, wealthy and older consumers in the discounter’s trade area has increased while its share of customers that Placer.ai defines as “Singles and Starters” has declined, the data firm noted. Read more: Lidl readies store debuts amid East Coast expansion | Grocery Dive #smartdiscount #lidl #nyc #newyork #maryland #customer #traffic #expansion #growth #eastcoast #store #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain No Name, launched by Loblaw, are stores which are less complicated to run because they will rely on reused fixtures such as shelves and cash lanes to reduce costs, while also having: Shorter operating hours (10am-7pm) Smaller assortment means the store is less complicated to run Limited marketing and no flyers No refrigeration (no dairy or fresh meat products) Reused fixtures – shelves, cash lanes – to minimize building costs Fewer weekly deliveries, reducing logistic costs “Running a traditional grocery store can be expensive, but by reducing our building and operating costs, as well as the overall complexity of the store, we do believe that we can deliver meaningful savings,” Per Bank, Loblaw CEO and president, told The Canadian Press. Prices will be up to 20% cheaper than comparable items at nearby discount stores, with about two-thirds being below $5. Just under 60 per cent will be No Name or President’s Choice private label brands. Retail analyst Bruce Winder said reusing fixtures and changing hours could lead to better costs for consumers. “They’ve sort of taken every nickel and dime out of the cost of the operation, which allows them to sell cheaper every day and still make money,” he told Global News. No name's goal is simple Providing food and essential household items across a limited range of national brands and no name brand products at our lowest possible price,” said Per Bank, President and CEO, Loblaw. “Since food inflation took off globally, we have been laser-focused on doing what we can to keep prices lower for customers, including opening more discount food locations in more parts of the country. This new test concept allows us to pass on lower prices to our customers, it’s a completely different and simplified shopping experience.” Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. It’s not just store size, however, that will be different, inventory will be too. There will be less variety of items with about 1,300 individual products, compared with 7,000 at the smaller-format No Frills locations. Those items will include frozen food, packaged bakery products, produce and pantry staples, but no refrigerated foods like dairy or fresh meat. Winder said he believes the company has gone with an “80-20” model, in which it may have chosen the 20 % of items that bring in about 80 % of revenues to fill these No Name locations. “What they’ve done is they’ve cherry-picked the highest movers, the highest consumables,” Winder said. While it may lead to cuts in overhead costs, Michael Mulvey, associate professor of marketing at the University of Ottawa, told Global News it’s difficult to determine how consumer-friendly it will be. “Part of the value of going to a grocery store is to be able to get all your groceries, to put together a meal before you get your kid off to soccer practice,” Mulvey said. “By this model, it looks like you can get a few staples that are dry goods, not refrigerated, but it means you’re going to have to go somewhere else.” Lack of choice could pose issues Mulvey said it’s difficult to say how successful the stores will be, in part because Canadian consumers prefer choice. “If you look in people’s grocery cart, some of them are going to be generic products,” he said. “But I also notice that there’s a lot of people that will get like one-quarter of the volume of ice cream for three times the price. Why? Because they like premium goods.” Bank said within six months he expects the company will have an idea of if the concept is working, but if it isn’t, they take what they’ve learned and apply it elsewhere. However, Winder thinks it could work because of the cost-of-living struggles many Canadians are facing. Food Banks Canada reported on Thursday new polling data of 1,500 adults from July that found 35% of Canadians feel financially worse off compared with just three months ago, with 47% of those with incomes below $50,000 facing what it called serious financial hardship. Though Canadians like choice, Winder said Loblaw’s pilot No Name stores and its previously announced No Frills discount locations could be targeted at these Canadians. “I think the people who are living at the margin they’re targeting probably are used to sort of store hopping to get what they need,” Winder said. Store tests since September 2024 The no name store is piloting in three markets in Ontario at Windsor, St. Catharines, and Brockville. Read more: Loblaw’s No Name discount stores show focus on cash-strapped Canadians | Globalnews.ca #smartdiscount #nofrills #noname #canada #smallformat #small #store #loblaw #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Variety Retail Chain Action saw its net sales grow to €7.3 billion in the first six months of 2025, up 17.9% from 2024. Like-for-like sales growth was 6.8%. Action added 125 stores and ended the period with a total of 3,043 stores in 13 countries. Every week, an average of 20.2 million customers visit an Action store for their everyday necessities. In Germany, now Action’s second largest market after France, the 600th store was opened in Bremen. In Poland, the 400th Action store was opened in Poznań. Action remains on track to achieve its target to add at least one store per day on average in 2025 and circa 370 stores in total. “As the economic climate remains very challenging for many customers, they continue to rely on Action as their favourite store for everyday necessities at the lowest price,” comments Hajir Hajji, CEO Action. “We continue to attract more customers to our existing stores. At new stores we are often met by excited customers queuing up outside as they cannot wait for the opening. We also saw this in Switzerland, where we started in April and expectations were exceeded.” Switzerland and Romania The first Action store in Switzerland opened on 4 April, welcoming thousands of enthusiastic customers. Since then, four more stores were opened across the country attracting the same interest from customers. Action is preparing to open stores in Romania. The opening of the first store in Pitești in southern Romania is planned for 24 September this year. Celebrating 3,000 Action stores across Europe On 5 June, Action opened its 3,000th store in Italy. This achievement was celebrated across Europe in all stores with customers, colleagues, and with suppliers and partners. Action customers enjoyed special offers. Colleagues at Action received a one-off net payment of up to €300 and a special anniversary gift as a token of Action’s sincere gratitude for their dedication. During a European supplier event Action shared and discussed its progress on market expansion and the Action Sustainability Programme with its suppliers. Progress Action Sustainability Programme Action officially opened its 16th distribution centre in Europe and the first one in Spain, three years after opening a first store in Spain. Every aspect of this distribution centre in Illescas, from construction materials to installed equipment, has been designed with the highest sustainability requirements in mind. As a result, the facilities were certified ‘Outstanding’ by BREEAM, the leading international certification for sustainable building construction. This is now Action’s standard for all new distribution centres. As part of its sustainability programme, Action is committed to long-term partnerships that support children to have a safe, healthy and fulfilling start in life. Coinciding with the celebration of opening its 3,000th store, Action donated €100,000 to each of its partners SOS Children’s Villages and the Johan Cruyff Foundation. Action also established a new long-term international partnership with the Prinses Máxima Centrum Foundation to support their mission to cure every child with cancer, with optimal quality of life. Read more: Action delivers continued growth - Action #smartdiscount #action #variety #nonfood #expansion #growth #revenue #development #sales #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl U.S. are all equipped with a floor-to-ceiling display of fresh baked goods. Look a little closer, and you’ll see an array of croissants that cost as little as 49 dollar cents, along with bargain-priced breads, bagels, cookies and other items prepared behind the shelves in on-site ovens. The artfully designed selection of inexpensive bakery items is central to Lidl’s approach to the discount grocery space on this side of the Atlantic. It’s an approach the company has honed over the years as it has sought to win over American consumers, many of whom are still not familiar with the grocer, which is a household name in Europe. While it might occupy prime space at the front of the store, the bakery is also intended to serve a much broader purpose: Letting customers know right away that the German grocery chain strives to offer low prices without compromising on quality, according to Joel Rampoldt, a former management consultant who became CEO of Lidl US in 2023. As shoppers move on, they enter the produce section, which Rampoldt said the international grocery company deliberately places close to the front of the store. “When they think about a discounter, we want them to think about fresh products, especially fresh fruit and veg, as soon as they walk in,” he said. “And it’s been core to what we do ever since we opened.” Lidl has been striving to make inroads in the U.S. grocery market since opening its first stateside locations in 2017, and simplicity and standardization are hallmarks of its strategy, Rampoldt explained during a recent tour of a Lidl store in Chantilly, Virginia, that opened in 2023. Over the eight years since Lidl opened its first U.S. locations, the grocer has tried to liven up its stateside stores with new products, snappier marketing and store design cues that appeal specifically to American consumers, all of which were on display at the Virginia location. Lidl currently operates more than 185 locations in nine states, and its stores are generally similar in terms of how they are laid out and the products they carry. “We don’t customize to local regions very much, not nearly as much as traditional grocers, and that is part of our cost equation,” said Rampoldt. “We need to have a model that works almost everywhere. We’ll have some things that are customized to the local area, but for the most part, we will have a very consistent assortment in all of our stores so that we can operate as efficiently as possible.” Rampoldt pointed to a pallet of fresh peaches as an example of the company’s focus on freshness and efficiency. “Everyone will form their own opinion, but having our fresh peaches, which are in season now, in a case like this, there’s absolutely nothing wrong with that,” Rampoldt said as he guided a Grocery Dive reporter past a display of the fruit. “The consumer is not losing anything. But what we gain is enormous efficiency, and they gain on the price.” Using name brands to highlight private label goods Private label products are a hallmark of Lidl’s operations around the world, including in the U.S., and the chain deliberately places highly regarded FMCG name-brand items immediately adjacent to goods it sells under its own name to emphasize that it offers choice and value, according to Rampoldt. Standing in front of a cooler containing jars of Nutella hazelnut spread, Rampoldt noted that Lidl not only offers a comparable private label products that carries its own brand names for less but also has a premium version under its Preferred Selection private label brand that also carries a lower price than Nutella. “The customer has the choice. If you want the national FMCG brand, in this case, we have it, and we have it at a great price, but our private label brand options are extraordinary,” he said. Using imports strategically Imported products play a key role in Lidl’s efforts to demonstrate to shoppers that it offers unique products despite being a discount grocer.  While 85% of what Lidl’s U.S. stores sell comes from the United States, the company deliberately imports products when it determines that looking elsewhere is a better option, Rampoldt said. To highlight that, Rampoldt pointed to premium packages of ham and Parmigiano Reggiano cheese. “Spanish ham needs to come from Spain. Parmesan Reggiano cheese needs to come from Italy, or it’s not authentic,” he said. “Where it’s imported, it’s for a reason … this is a quality and a price point that we get by being part of the world’s fourth largest retailer, which has enormous global buying power.” While Lidl looks outside the U.S. for certain products, it has to source other goods domestically for practical reasons, like maintaining freshness. In an illustration of that, Rampoldt said the grocer doesn’t currently carry private label high-protein yogurt in its U.S. stores even though Lidl locations in Europe do, but is working to change that. Putting Lidl’s stamp on meat Lidl also works its international reach into its branding strategy. For example, Lidl sells meat under its Dulano name, which the discounter uses across the more than 30 countries where it runs stores. Dulano is not just a Lidl's private label brand. It has bulk behind it. It has market presence and scale, and it’s a real brand, and we want to bring that to the U.S.,” Rampoldt said. But because the brand might not be recognizable to many U.S. shoppers, Dulano products in stores in this country also note that Dulano is “by Lidl.” Lidl recently unveiled its first U.S.-specific private label meat brand, Butcher’s Specialty, a move Rampoldt said he believes distinguishes Lidl from retailers that don’t put their own name on fresh meat. “We’ve put a lot of work into finding the right supplier partners, the right supply chain, to make sure this product is a great value and a great quality,” Rampoldt said about the new brand. Building in an element of surprise Aside from their main meat selection, Lidl’s stores feature a separate section of meats, cheeses and items oriented specifically toward entertainment, which Rampoldt said is intended to help shoppers associate a trip to its locations with enjoying food. Lidl also strives to impress shoppers with a rotating assortment of goods that it doesn’t always carry, with many of these items clustered in an area it calls “Big Lidl Deals.” Rampoldt pointed to a premium variety of bacon in the section as an example of the type of product Lidl carries in the section. “When we have an extraordinary opportunity … we bring that in for our customers, and our customers know they won’t be able to find that every day, but when they do find it, it’s at a really, really great price,” he said. Read more: Inside the Store: Lidl US’ CEO shows off the grocer’s approach to efficiency | Grocery Dive #smartdiscount #lidl #expansion #efficiency #lean #fresh #experience #usa #privatelabel #assortment #fmcg #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi Nord returned to profitability in 2024, after several years of restructuring and economic challenges. The traditional discounter from Essen can record a significant increase in sales and again a positive annual profit. According to market research figures , Aldi Nord was able to grow about two percentage points better than the average of other discounters up to and including April of this year. Here, the survey app Yougov gives the average at 4.1%. According to Aldi, the company has been growing continuously above the market since the middle of last year. In 2024, the German national company was also the sales catalyst for the entire Aldi Nord Group. There was an increase of 500 million euros, almost half of the total growth of one billion euros. This corresponds to an increase of 3.1% with a total volume of 32 billion euros.   Positive factors for the current turnaround include internal restructuring. In addition, investments in prices and an optimized range of fruit and vegetables will come into play. The improvements in the own-brand private label range have also been able to increase the shares, also internationally. Increased expansion abroad Business developed particularly well in the foreign markets , especially in France , Spain and Poland . There, the discounter is benefiting from a continued strong trend towards price awareness and a growing interest in private labels . Aldi Nord scored particularly well abroad in the organic and sustainability segment. The introduction of new product lines under the "Aldi Nur Nur Nature" label met with a great response, also because the products were equipped with credible transparency and independent seals. The numerous new openings last year also contributed to sales growth. Another reason for better earnings was the conversion into a holding foundation. Since the changeover, the income from coffee production , the company's own mineral waters, as well as the income from real estate, has been included in the overall result.  For the coming years, Aldi Nord has set itself the goal of continuing on the path it has embarked on and continuing to grow profitably. The focus is now to be increasingly on digital services and also on new cooling technologies in the stores. A lot of money has to be saved here in process costs, as well as in energy. This will also help to be able to react even more strongly to main competitor Lidl in the future. Aldi is planning 500 new openings for the current year alone, but older locations will also be replaced. A positive example of this is Spain, where the 500th Aldi. Market is emerging. If everything goes according to plan, Aldi will then have almost 5,600 stores in Europe. Read more: Bei Aldi Nord stehen alle auf dem Gaspedal - Supermarkt Inside #smartdiscount #aldi #lidl #yougov #germany #expansion #growth #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

In the second quarter of this year, year-on-year traffic increased in convenience stores: by 6.6 % hypermarkets: by 5.5 % discount stores: by 2.7 % supermarkets: by 0.6 % according to a report by Proxi.cloud and the Blix Group. In the first two segments, the number of so-called unique customers also increased. The effect of the recovery in consumption "This is the result of the recovery in consumption with stabilizing inflation and improved consumer sentiment. The largest increase in the convenience segment is not surprising, because this format responds to the need for quick, frequent shopping, often at the last minute, close to home, especially during holiday and travel periods, e.g. during the May or June long weekend," said Marcin Lenkiewicz from the Blix Group. The success of convenience chains is influenced by the increase in the number of outlets belonging to them The Proxi.cloud expert, in turn, noted that the success of convenience chains is also influenced by the increase in the number of outlets belonging to them. The so-called newsletter applications are also gaining popularity, thanks to which more and more customers take advantage of available promotions, thus increasing traffic in stores. "Our other research shows that more and more people combine shopping in several formats even on one day. For example, basic products are purchased primarily in discount stores, and complementary products, in convenience stores. It is this segment, thanks to its availability and flexibility, that most often plays the role of second-choice facilities, which largely explains the highest increase in the number of visits in the analysed period", added Weronika Piekarska from Proxi.cloud. In the opinion of the authors of the report, the growth in hypermarkets was supported by higher Christmas shopping and weekend barbecues, but the long-term trend is conducive to smaller, more accessible convenience stores. The loss of discounters is due to market saturation "The loss of discounters is due to market saturation and growing competition from local formats. The convenience channel wins primarily in terms of availability, while discount stores and supermarkets continue to dominate as a place for larger, planned purchases, especially groceries and household chemicals. The order of the segments in the ranking also reflects a change in behavior. Consumers buy less at a time, but more often", said Lenkiewicz. In the second quarter, the share of individual store formats in the total number of visits changed slightly. Convenience chains: 43.3% (Q2 2024: 42.3 %) Discount stores: 31.5 % (Q2 2024: 31.9 %) Supermarkets: 19.3 % (Q2 2024: 20 %) Hypermarkets: 5.9 % (Q2 2024: 5.8 %) Shopping frequency increased year-on-year across all formats. In the convenience channel, the number of visits per customer increased from 9.6 to 10.1, in discount stores from 7.3 to 7.6, in supermarkets from 5.4 to 5.5, and in hypermarkets from 3 to 3.2. The average monthly total time spent shopping by the average customer increased year-on-year only in convenience stores from 40 to 44 minutes. It has not changed in hypermarkets - 1 hour and 2 minutes. Decreases were recorded in discount stores from 44 to 41 minutes and in supermarkets from one hour and 1 minute to 58 minutes. The analysis was carried out by the technology company Proxi.cloud and the Blix Group in cooperation with the analytical and research platform UCE Research. It covered the behaviour of consumers visiting discount grocery stores, supermarkets, hypermarkets and convenience chains (a total of 25 retail chains). The sample size was nearly 1.4 million consumers. In total, over 40,600 stores were observed. Read more: Małe sklepy biją dyskonty. Nowy król codziennych zakupów #smartdiscount #poland #growth #competition #leading #consumers #drc #discount #retail #consulting #discountretail #discountretailconsulting #google

Discount Retail Chain Lidl is active in 30 in Europe. Lidl currently operates 12,350 stores and 225 logistics centers in 31 countries including the USA. Lidl is particularly well represented in countries such as Spain and Poland, where the company is now one of the market leaders. Southeast Europe once again stood out particularly positively, especially Romania Lidl Romania recorded strong growth in 2024, reporting consolidated net sales of over 24.6 billion Ron (4.8 billion euros), an increase of 9% compared to 2023. According to the company, key growth drivers included a focus on low prices (despite inflation), strategic investments in key product categories, the Lidl Plus app and a commitment to values. The measures implemented included stable prices, the expansion of the network, and investments in the Lidl Plus loyalty program and key product categories. Also a novelty: Lidl Romania sourced over 50% of its products from local suppliers, a total of around 535, an increase of 13% compared to 2023. Lidl in Sweden was able to increase sales. The discounter's foreign business in Sweden is also impressive in terms of results. The first Lidl stores in Sweden were opened in September 2003. Today, the grocery chain has 204 stores in Sweden from Trelleborg in the south to Boden in the north, and more than 5,000 people work for the discounter. The head office is located in Barkarbystaden in Järfälla Municipality, Stockholm Province. There are three central warehouses in Halmstad, Rosersberg and Örebro. Lidl Sweden has four real estate offices in Stockholm, Gothenburg, Örebro and Malmö. In the last financial year 2024/ 2025 (fiscal year ended on 28.02.2025), the foreign company was able to increase sales by 2% to 19 billion kroner (plus 1.75 billion euros). This is a strong result when you consider that no new openings have been added to the 204 existing locations. Lidl was also able to post a profit of 46 million kroner in Sweden after a loss of 183 million kroner in 2023. Seven more stores are to be opened in the current fiscal year, with the goal of soon breaking the 300 mark in Sweden. "Customer" department now also in other countries. The new structure with the customer department has now also been established in other countries. In addition to Romania, this is also the case in Denmark in the Netherlands. The newly created department is intended to strengthen the Lidl brand, focus even more on customers and ensure cross-departmental customer orientation. There were also new changes in the management structure. Ms. Mette Schacht Faerch will take over the Clients department in Denmark. She was previously Global Vice President, Categories, Marketing & Consumer Experience at Danish Crown. Here she was largely responsible for strengthening and modernizing the Group's image. She is now expected to strengthen the brand and focus more on the food chain's major health initiatives. There was also a change in the Netherlands. Stephanie Both now holds the position of Chief Customer Officer. She had already held various positions in the management of the national companies in recent years. Read more: Lidl macht weiter Tempo in Rumänien - Supermarkt Inside #smartdiscount #lidl #romania #expansion #growth #revenue #restructuring #denmark #netherlands #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Variety Retail Chain Pepco Group has announced plans to accelerate its expansion across Europe after finalising the sale of its struggling British discount chain Poundland. The Warsaw-listed company, which owns the Pepco and Dealz brands, said the sale to investment firm Gordon Brothers marked a strategic shift that will allow the business to focus on higher-margin growth markets, particularly in Central and Eastern Europe. "The group is much simpler now after the sale of Poundland, and we'll focus on accelerating growth and profit," CEO Stephan Borchert told Reuters. Pepco had been exploring options for Poundland since December 2024, aiming to offload a business that had become a drag on overall profitability. In its third-quarter trading update, Pepco posted record-high revenue of €1.1 billion (£950 million), which was up by 7.7% year-on-year at constant currency. This was driven by solid performances from both Pepco and Dealz, which drove a 2.6% rise in like-for-like sales. "We will still focus on store openings in Central Eastern Europe because we believe we have still a lot of potential here," Borchert added. He also pointed to promising developments in Western Europe, particularly in Italy, Spain, and Portugal, which he called "the next growth frontier." The company also announced the launch of a share buyback programme of up to €50 million (£43.1 million) , set to begin around 17 July. The move is designed to reduce capital and meet obligations under staff incentive schemes. Borchert noted that the decision reflects Pepco’s belief that the current share price does not fully reflect its long-term growth prospects. Read more: Pepco's revenues rise as it plans European expansion post Poundland sale - TheIndustry.fashion #smartdiscount #pepco #expansion #poland #europe #growth #dealz #gordonbrothers #revenue #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Variety Retail Chain Wibra has recorded record sales in 2024. The discounter is growing strongly due to its expansion strategy and will continue to do so in 2025. Gross sales increased by 22.7 percent to 286 million euros. To put Wibra's growth in perspective, the total was 170.9 million euros in 2022 and 193.8 million euros in 2023. The increase in turnover is therefore partly due to the substantial expansion of the store network, but like-for-like turnover also increased by 11.3 percent. Operating profit rose by 35.6 percent to 12.7 million euros. Physical store expansion Wibra continues to expand its store base. By 2024, a total of 31 stores were added and another 17 were converted. The new stores were opened in the Netherlands, Belgium and for the first time also in France. Last October, the discounter added this new market with the opening in Lille. Wibra again has substantial expansion plans for 2025, says CEO Bas Duijsens: "We are aiming for a further increase in like-for-like sales and have no fewer than 58 additional stores planned in 2025." These new branches will be opened in the Netherlands, partly in former Blokker buildings, in Belgium and also in France. Wibra is originally a family business from Epe and was founded in 1956. The discounter currently has more than 300 stores in the Netherlands, Belgium and France Read more. Wibra boekt recordomzet over 2024 - RetailTrends #smartdiscount #wibra #netherlands #revenues #expansion #growth #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain BBB Foods Inc. (NYSE:TBBB) is a well-positioned company which could benefit from developing a hard retail market in Mexico. The company has significant tailwinds in its focus on lower-income groups with a strong portfolio of private label brands. Tiendas 3B operates efficiently, according to the unit economics comparison. About Tiendas 3B (BBB Foods) Tiendas 3B is a fast-growing chain of discount grocery stores in Mexico that targets cost-conscious consumers and offers high-value goods. Its business model focuses on offering essential goods at competitive prices while leveraging operational efficiencies and effective supply chains. With a strong presence in underserved markets and growing consumer demand for affordable options, Tiendas 3B is well-positioned to take advantage of demographic trends and economic pressures. Its focus on small format stores allows for expansion in urban and rural areas with lower overhead costs, providing significant room for growth and margin expansion. The company offers food and non-food private label products, which make up 45% of all products. These products are sourced mainly from local suppliers, of which there are a small number, hence the strong link between them and Tiendas 3B. These products are cheaper compared to the branded ones. About 49% of the products are classic foreign brands, which are often imported from the USA, and 6% of the products are so-called Spot products, which change every 2 weeks. Mexico is the second-largest importer of processed foods from the US. These imported products make it susceptible to the strength of the Mexican peso, which has been weakening for a long time. The higher prices at which Tiendas 3B purchases will be reflected in the prices to end customers in 8 to 18 months due to inventory maintenance. The limited supply of products then increases their turnover. Specificities of the Mexican market Mexican consumers are quite selective and susceptible to changes in the prices of basic food due to high inflation and high interest rates. Consequently, these consumers often seek out discount chains to go beyond the discount. Digitalizing the shopping experience (apps) can serve to increase their satisfaction. Tiendas 3B operates an app where groceries can be purchased, and delivery times can be selected. The grocery sector is the main driver of CPI inflation compared to the US, where shelter (imputed rent) is the largest contributor to CPI changes. In addition, Mexico ranks among the countries with the highest poverty rate in Latin America (at 36.2% as of 2022, according to World Bank data). The Mexican market is filled with discount chains, with hard discount chains (such as Tiendas 3B) being significantly less prevalent compared to Poland and Germany. Penetration of this type of retail store was about 2.3% in 2022, compared to less than 24% in Germany (mainly due to the Aldi network) and even less than 34% in Poland. Typical customer and stores The company's primary target group is lower-to-middle-income working-class people due to its presence in densely populated urban areas and suburban areas. Tiendas 3B is expanding into the outskirts of major cities, where it has the potential to expand sales due to the lower penetration of traditional discount chains. Branches are often located near bus stops, metro stations and in busy locations within walking distance so that there is no need to use a car and customers can buy the essentials. Ideal for Tiendas 3B are spaces of 350-400 m2, which are created and maintained in the same concept. In addition, for faster inventory turnaround, the company builds the stores to be well-connected to the infrastructure. In addition, for this reason, Tiendas 3B is also building logistics centers to speed up the delivery of goods. The fast inventory turnaround and less need to hold cash give room for new stores to open faster without having to increase debt. Tiendas 3B has about 2,634 stores open as of Q3 2024, and expects that with the current population growth it could reach 12,000 more. In my opinion, a supporting aspect is the possible deportation of migrants from the US, which would increase demand in these stores due to the fact that they are people from lower-income groups. Tiendas 3B is the fastest-growing hard discount food chain in terms of number of retail outlets. The stores growth CAGR between 2019 and 9M2024 is 20.3%, with a projected addition of 500 per year from 2025. For the full year, the company plans to open 380-420 new stores, which corresponds to a planned investment of Peso 1.4-1.6 billion. This translates to MXN 3.9 million. MXN 2.5 million per store. With a target of opening 500 stores per year from 2025, the company needs to spend approximately Mexican peso 1.95 billion per year on this CAPEX alone. Accounting for the impact of inflation and the "safety cushion", I expect that the CAPEX spent on store construction could be Peso 2.15 billion, Peso 2.32 billion and Peso 2.51 billion in 2026, 2027 and 2028, respectively. If the company generates what it did in the first 9 months of 2024 on operating cash flow, it will have no problem financing this expansion. Moreover, with negative net debt. Market share and competition The market share estimate was calculated as a ratio of annualized Q3 2024 sales and the retail industry's 2023 sales size estimate (Source: Statista). For Wal-Mart De Mexico S.A.B. de C.V. (OTCPK:WMMVF), (Walmart Mexico) it is calculated in aggregate with branches in both discount chains and hard discount chains. In comparison, the Tiendas Neto chain with currently 1,600 stores is missing due to lack of data. This business is held entirely by its founder Hugo Salinas Sada. Finance - Unit Economics For fast-growing and expanding companies, a key indicator is how well they can manage their unit costs, or whether the new units are generating revenue efficiently and whether they are competing if they are in similar locations. Tiendas 3B is showing sustained quarter-on-quarter growth in revenues per store, indicating growing unit economics. Ordinary revenues per store are lower because the company offers cheaper goods in its stores. The sales of El. Puerto de Liverpool's (LIVEPOLC-1) sales are affected by leasing revenues, which is why the per-unit conversion is higher. Walmart Mexico (Walmex) includes sales from both discount stores and hard discount stores in the calculation. When converted per m2, we see a similar trend as when converted to a whole store. Companies in the discount chain sector are achieving higher sales per m2, however, the quarter-on-quarter change trend for Tiendas 3B is gradually increasing. On the positive side, Tiendas 3B also compares favourably within the hard discount chains with Dollar General Corporation (DG), Dollar Tree, Inc. (DLTR) and Five Below, Inc. (FIVE) from the US, against which it achieves higher sales per m2, even without taking purchasing power parity into account. Margins In the hard discount retail sector, margins are very low due to the large representation of private labels and the focus on only the essentials. This is confirmed by comparison with traditional discount chains within the Mexican market. In addition, Tiendas 3B's margins are under pressure due to expansion, which increases fixed and operating costs. Margins vs. hard retail stores in the U.S. The table below shows that Tiendas 3B also has lower margins compared to similar companies in the U.S. A major reason for this is the effect of the Mexican peso on imported goods from the U.S. However, at the net margin level, despite geographic headwinds and a strong growth phase, the company shows competitive margins. Working Capital - Days Inventory Outstanding A key indicator affecting capital requirements in retail is inventory turnover. Tiendas 3B adheres to strict inventory management and by spreading out its distribution centers, it can efficiently deliver goods to stores, thereby reducing the lead time. Compared to most U.S. "dollar stores," Tiendas 3B can handle inventory more efficiently, reducing capital requirements. On the other hand, compared to a traditional discount retailer, a hard retailer Tiendas 3B has a longer turnaround time mainly due to the higher rate of branded product sales in a traditional discount retailer. Competitive advantage Tiendas 3B takes the route of using leases and direct ownership of real estate to finance new stores. Companies such as Soriana (SORIANAB) and GC Chedraui (CHDRAUIB) have developed real estate divisions of their business. In contrast, the discount chain Walmart Mexico has a similar approach to Tiendas 3B. The use of leases gives the company the flexibility to evaluate a possible relocation, assuming the store is underperforming. It also has the advantage of localizing the supply chain. Most products are manufactured by local suppliers who have strong ties with the company. For example, if these suppliers need to make an investment, Tiendas 3B will provide them with guarantees. This makes it possible to control the cost structure and this translates into good unit economics. Valuation Tiendas 3B is referred to among analysts as the Aldi of Latin America. This can be seen in the valuation. Tiendas 3B, as a company operating mainly in Mexico, trades at a valuation multiple comparable to US companies. The absence of a geographic premium is primarily replaced by the US listing, where investors count on a liquidity premium to firms listed in Mexico. However, the valuation mainly incorporates growth prospects for expansion after Mexico. *BF = Blended Forward, valuation multiples comparison. Source: Bloomberg Finance L.P. Valuation vs. 6M Average Historical Multiple The company's stock is trading near the 6M historical average today on virtually all the methods listed. Risks The main risk factors to identify are high wages growth and a potential tariff war with the U.S. which could influence strength of Mexican Peso and imported product prices. Risks related to the company's growth could be slower opening of new stores or slowing down same-store sales. Conclusion Tiendas 3B is the pioneer in the hard-discount market in Mexico. Its position is giving it the opportunity to benefit from market penetration growth. Negative net debt and strong cash flows help the company to reach its growth targets and benefit the most in an interesting market. Moreover, the founder and CEO is an experienced ex-JP Morgan investment banker who covered BIM Birlesik Magazalar and used it as an inspiration. BBB Foods: Hidden Gem In Hard-Discount Retail (NYSE:TBBB) | Seeking Alpha #smartdiscount #tiendas3b #mexico #privatelabel #businessmodel #marketcap #inventory #finances #risks #expansion #tbbb #growth #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Variety Retail Chain Waldo Dollar Mart found a niche with the sale of opportunity products, and knowing its customers well has led it to develop a market for electric mobility products. Waldo's Dollar Mart saw an opportunity with a business model that would become popular in Mexico. The discount store chain opened its first unit in Mexico in Tijuana, in February 1999, under a concept that was familiar among shoppers who crossed the border to buy products in dollar stores, which sold a variety of goods at a single price, established by the exchange rate. So Mexico was different. There was a climate of economic recovery, with a good pace of growth and low inflation after five years earlier there was 'the December mistake', the crisis that was generated by the lack of international reserves, which led the peso to lose more than 60% of its value in record time. The retailer, which then operated with U.S. capital, as a franchise of Waldo's Holdings, maintained its premise of selling its products below the value of one dollar, which in the year of its opening was around 10 pesos, until in 2014 it passed into the hands of the Mexican Grupo Vizion and that was when it reversed its business strategy. the most significant moment for its current development, says Ernesto Llano Sánchez, commercial vice president of the company. The most significant adjustment in the reengineering of the chain is that shareholders began to participate more actively in the operation of the company, with the benefit given to them by the experience in retail with the clothing stores under the Eleczion brand, which then had a national presence. "Since 2014 we have been working in a more integrated way and we no longer only manage these brands, but we also incorporate the clothing chain into Waldo's stores. This has triggered new formats with which we are in the 32 states of the country. We believe a lot in Mexico, we are going to continue growing in the country," says Llano Sánchez. Regulatory changes stalk Waldo's Chinese vehicle business 40% of its portfolio was of continuity items, that is, those that are always on its sales floor, while the remaining 60% are of opportunity purchases, which requires careful management of the supply to maintain the price differential, which now ranges from 9.99 to 99.99 pesos. which rise in goods of differentiated value, such as suitcases or household appliances. As part of the efforts to find functional products at affordable prices, in the midst of a global context of persistent inflation, something that has become the company's biggest challenge, the search for goods for suppliers begins in the local market, which is complemented by imports from 16 countries, including China. In addition, it replaces those goods that become more expensive to maintain their supply. "We seek to surprise the customer, the idea is that they arrive at the store and discover. We look for products that make sense to customers, and they make viral products, and if there is an opportunity, we look for them to move on to the permanent product line. We are focused on the price point," says the executive. From dollar products to electric cars Waldo's has its main focus on its general merchandise stores, which are the basis of the geographic growth of the business, but with the knowledge of the buyers, the company has diversified the formats to have small stores, such as Waldo's Express, Waldo's Motos for mobility stores, Waldo's Moda and its online store. This diversification of formats allows the company to target its product offer more precisely, while the mobility division is gaining popularity in the market with the viralization on social networks of its bicycles, motorcycles and electric cars, all of the Chinese brand Kiwo. In November last year, in fact, the executive shared that this new commitment represented 50% of the chain's growth in comparable stores, consolidating itself as a pillar in the chain's performance. The mobility vertical, in addition to cars, motorcycles and electric bicycles, will have in the short term an assortment of spare parts and maintenance equipment, which are currently only available in its online store in response to the success of Kiwo's merchandise offer. The price of the products of this division is one of the characteristics that have led it to gain popularity. The price of the electric car, for example, starts at 90,000 pesos, while the starting price of motorcycles is less than 6,000 pesos. "We learned a lot about what our customer is looking for in the various regions of the country and that is how we are limiting the offer," explains Llano Sánchez, while revealing that the best-selling product is its electric bicycle model. "This 2025 is still a year of learning in this division, we want to master the format and determine where the concept is most successful and that will allow us to determine where we have to analyze the growth of Waldo's Motos," he says. Quickening the pace to gain market share Waldo's has managed to mutate at the pace marked by the transformation of the habits of Mexican consumers, without ceasing to operate in the hard discount segment, which in times like these, with high levels of inflation and a timidity in consumption when it comes to opening the portfolio, take notoriety and this results in the race to win the market being increasingly close. Discount stores represent an opportunity to win over Mexican consumers who are looking for a variety of products at affordable prices and this has led to the various brands that compete in the segment gaining popularity. From the units of Tiendas 3B Stores to the small-format units of large self-service stores, such as Walmart, Chedraui and Soriana, they compete for this segment of the market. Waldo's, which until mid-May had 895 stores (740 Waldo's stores, 120 fashion stores and 35 mobility stores), expects to reach 900 units by the beginning of the second half of the year, according to the plans that Llano Sánchez shares, without revealing the estimated amount of investment for this expansion. "Our project is to open 130 stores and with this strategy, we are going to reach the milestone of the 1,000th store in 2026," he says. "We are already in 286 municipalities and we will continue to have a presence in more throughout the country. We are increasingly looking to be more versatile, that is, we are not closing ourselves to a format just in store. We seek to be sensitive to the different value propositions that exist in the market," he adds. In the hard discount segment, the chain that has accelerated growth is Tiendas 3B, which outnumbers the rest of the competition, and which this year plans to open between 500 and 550 units, of which it has already cut the bar of 117 during the first quarter of the year. Until March of this year, it was at the forefront with a greater number of stores, above Walmart, which operates in the segment with the Bodega Aurrera Express format. "The market is competitive and Waldo's will have to make a difference with its growth strategy or develop in the regions where it could have the greatest opportunity," says stock market analyst Marisol Huerta. The chains in the segment had a growth of 51.2% in points of sale in the country, going from 2,180 branches in 2019 to 3,297 by August 2023, according to an analysis by Deloitte. For the consultancy, the margin for growth in this niche is wide, considering that they represent only 2.3% of the value of total retail sales in Mexico, while in Colombia the percentage is 17% and in countries such as Norway, Denmark, Belgium or Germany, they represent up to 40% of the consolidated sector. "It is evident that the Mexican market is just beginning to adopt this type of format, and that consumers are also beginning to consider them as one of their options for making purchases. In other words, there is still ample ground on which to expand," says Manuel Ostos, leading partner in the consumer industry at Deloitte Spanish Latin America, in the analysis, published in October last year. Waldo's is confident of its opportunity to grow. Its like-for-like sales growth target for this year is around 5%. E-commerce, meanwhile, is growing at triple digits, and already has a share in consolidated sales of between 3.5 and 4%. And the number of visits is 150 million a year in e-commerce, when in physical stores the number is 100 million. "Discount stores will continue to be the engine of retail in Mexico, given the structure of demand and the strength of the consumer, and in the case of Waldo's, their price power and their ability to achieve extremely low prices should definitely remain as their strong point in the future," says independent analyst Carlos Hermosillo. Read more: From dollar prices to electric motorcycles: this is how Waldo's evolved in Mexico #smartdiscount #waldos #mexico #expansion #growth #variety #nonfood #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl's sister company the German Schwarz Produktion Stiftung & Co. KG intends to acquire the operating subsidiaries of Mayntz GmbH, in particular Göbber GmbH, DHI GmbH, Eystruper Land GmbH and Friedrich Göbber GmbH. The Göbber Group manufactures refined fruit and honey products and looks back on a tradition of more than 135 years. Schwarz Produktion will continue to operate the company with the involvement of experienced employees and thus expand its production portfolio. The closing of the transaction is subject to approval by the antitrust authorities and is planned for the third quarter of 2025. The purchase price was not disclosed. The Göbber Group's production site in Eystrup, Lower Saxony, will continue under the umbrella of Schwarz Produktion. Founded in 1888, the Göbber family business currently employs 350 people and has annual sales of 70,000 tonnes of fruit spreads and honey. Schwarz Produktion is thus consistently pursuing its strategy of ensuring the security of supply for its customers. "It is not without reason that the solidly positioned traditional company is known for its quality products and is an important partner in the field of jams and honey," explains Sandro Lemmrich, CFO of Schwarz Produktion. "With the acquisition of Göbber, we are relying on valuable know-how and ensuring long-term security of supply with high-quality fruit spreads and honey for our customers. With the highest quality and reliability, we set standards for future-proof production." Michael Mayntz, shareholder of Mayntz GmbH, adds: "The Göbber Group has developed very successfully in recent years under the leadership of Michael Berghorn and his team. The step under the umbrella of Schwarz Produktion is well considered. Under the umbrella of Schwarz Produktion, stability and security are also guaranteed in the future. As a family business, we paid very close attention to the fact that common values were present when selecting a partner. This is the basis for adding further chapters to Göbber's success story, now in a different line-up." For Schwarz Produktion, the site in Eystrup will be the second in Lower Saxony. Since 2001, the MEG Löningen beverage plant has been located in Löningen, which produces soft drinks and mineral waters for the retail companies Lidl and Kaufland and employs around 270 people. Read more: Geplante Akquisition der Göbber Gruppe - Schwarz Produktion #smartdiscount #lidl #schwarzproduktion #schwarzproduction #acquisition #jam #honey #producer # mayntz #groebber #eystruperland #verticalintegration #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google