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  • USA: Dollar Tree sells Family Dollar for just over $1 BN

    Discount Variety Retail Chain Family Dollar brand has finally come to an end as Dollar Tree announced it entered into a definitive agreement to sell the Family Dollar business to Brigade and Macellum for just over $1 billion, the retailer revealed during its fourth quarter earnings call on Wednesday. The agreement was official on Tuesday and net proceeds are estimated to total about $804 million. The deal is expected to close in about 90 days. “This is a very exciting day for our company,” Dollar Tree CEO Mike Creedon said during the call. “The sale of Family Dollar is the best way to achieve … our goals. With Dollar Tree as our sole focus … we can return to our roots.” Dollar Tree initiated a formal review of strategic alternatives for the Family Dollar brand in mid-2024. “The unique needs of each banner at this time, transformation at Family Dollar and growth acceleration at Dollar Tree, lead us to the decision to conduct a thorough review of strategic alternatives for the Family Dollar business,” former Dollar Tree Chairman and CEO Rick Dreiling said at the time. It was a relatively solid fourth quarter for Dollar Tree, as net sales increased 0.7% year over year to $5 billion, and same-store net sales grew by 2%, driven by a 0.7% increase in traffic and a 1.3% rise in average ticket. For the first time since Q4 of 2022, average ticket grew faster than traffic, according to Creedon. For the first quarter of 2025, the Chesapeake, Va.-based retailer expects net sales to fall in the range of $4.5 billion to $4.6 billion, based on comparable store net sales growth of 3% to 5%. “Dollar Tree is seeing middle-income shoppers, who make up about half of our customer base, focusing more on value,” Creedon said. “At the same time, we are seeing stronger demand from higher-income customers who increasingly view Dollar Tree as a cost-effective source for an expanding range of products.” Tariff talk Dollar Tree spent a significant amount of time during the earnings call discussing its strategy regarding tariffs on China, Canada, and Mexico, as well as retaliatory tariffs. Creedon said multiple contingencies are in place to address various tariff scenarios, including negotiating supplier cost concessions, changing product specifications, dropping non-economical items, moving the country of origin, and exercising the flexibility the multi-price format offers. “We intend to remain flexible and nimble, focusing our efforts on sourcing products via channels that deliver the lowest landed cost in order to maintain value continuity for our customers,” Creedon said. Dollar Tree offset more than 90% of the incremental cost of the 10% tariff on China as of Feb. 4. The impact of the second round of tariffs levied in March has not been included in the 2025 outlook. Multi-price means one result: success The discount retailer’s multi-price format boosted Q4 performance, according to Creedon. The 3.0 stores are either new or converted stores that offer an expanded multi-price assortment throughout the store. The 2.0 stores have a smaller multi-price assortment concentrated in a single aisle called The Valley, and 1.0 stores have 95% of products tagged at $1.25. Creedon said 3.0 stores performed better than the other formats during the fourth quarter. Dollar Tree operates 2,900, 3.0 stores, including about 2,600 store conversions and 300 new stores. The goal is to have 5,200, 3.0 stores by the end of 2025, including 2,000 conversions and 300 new stores. Distribution center changes Dollar Tree will replace the distribution center in Marietta, Ga., that was hit by an F4 tornado later this year. The Family Dollar distribution center in Odessa, Texas, will be converted to a Dollar Tree DC. By the numbers: For the full fiscal year, net sales increased 4.7% to $17.6 billion. Same-store sales during the 52 weeks ending February 1 were up 1.8% year over year, driven by a 1.6% increase in traffic and a 0.1% increase in average ticket. Gross profit increased 4.5% to $6.3 billion. For fiscal year 2025, net sales are projected to fall in the range of $18.5 billion to $19.1 billion. Comparable store net sales growth is expected to be 3% to 5% in FY 2025. Read more: Dollar Tree sells Family Dollar for just over $1B #smartdiscount #dollartree #growth #expansion #familydollar #divestment #capitalmanagement # brigadecapital #macellumcapital #usa #drc #discount #retail #consulting #discountretail #discountretailconsultung #retailconsulting #google

  • Poland: Biedronka is building a warehouse in the Podkarpacie region

    Discount Retail Chain Biedronka, owned by Jeronimo Martins, builds another warehouse in Sokołów Małopolski, Poland. The municipality prepared the area, providing the necessary utilities for the functioning of the hall. Construction works have already begun, and their completion is planned for the end of the year. The centre will store goods that will go to Biedronki in the region, and part of the hall will be 40 m high for fruit and vegetables that require special conditions, including reduced oxygen content, will be stored there. Excellent communication with the S19 route and the planned widening of the section between Sokołów and the airport in Jasionka make it an important communication route, enabling quick movement and moving transit outside. The entry of such a large investor into our area will ultimately bring the municipality about PLN 2 million in annual tax revenues. New jobs are also important, mainly for our residents. Up to half a thousand employees will be needed, said Andrzej Kraska, mayor of the municipality and city of Sokołów Małopolski, in an interview with the nowiny24.pl service. Another new warehouse investment also in Opoczno Biedronka will also build a warehouse in Opoczno, in the Łódź Voivodeship, where distribution centers located in Sieradz and Rawa Mazowiecka are already located. In March last year. Jeronimo Martins Polska has received a decision to support its investment in the subzone of the Łódź Special Economic Zone. The company has announced the construction of a distribution center in Opoczno, which will ultimately employ about 400 people. The cost of the investment was estimated at PLN 350 million. Together with the investment in Sokołów Małopolskie, it will be the 18th and 19th warehouse of this retail chain, respectively. Biedronka currently has 17 warehouses with a total area of approx. 450,000 sqm. Read more: Biedronka is building a warehouse in the Podkarpacie region. Work for 500 people #smartdiscount #biedronka #warehouse #investment #growth #development #poland #expansion #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

  • Australia: How do you make a Global Discount Retail Brand genuinely local

    Discount Retail Chain ALDI Stores Australia  asked Landini Associates to help design a smaller, urban infill format, where the rules could be reimagined, we grinned, broadly. But, how to deliver “local” for one of the world’s largest retailers, without being patronisingly formulaic?  And, how to create a replicable model that was actually of it's place, and affordable too? Our concept for ALDI Corner Store found a way to stay true to  ALDI SÜD  and  ALDI Nord Group 's core values of delivering a higher quality product for a significantly lower price, because guess what folks, paint is cheaper than tiling, and much more powerful when applied by multiple local, emerging artists.  And now everyone’s grinning  Colourful artist collaborations, not limited to one wall, honour differences whilst embracing operational affinities, infuse the entire space with fun, promote neighbourhood wellbeing, and support ALDI’s "Good Different" proposition.  Our solution ensures Corner Store is consistently “ALDI”, memorably unique, yet genuinely local, raising the bar for what community shopping could be; places of unlimited lifespan with functional and emotional relevance. So, thank you  Esther Mengual Miret  for your recent post featuring our work, writing about "retail con alma", retail with soul, and the power of spaces that connect, to place, to people. Something that  Alessandra Canessa  described as “Retail, beyond a transaction”, while  Ana Belén Lázaro  added, “Absolutely differential action, which strategically positions a brand positively and also amuses its customers”. Read more: (2) How do you make a Global Retail Brand genuinely local...? | LinkedIn #smartdiscount #australia #landiniassociates #design #aldi #murals #trendy #store #drc #ciscount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #branding #marketing

  • Georgia: Daily Group becomes the leading Supermarket Chain

    The Competition Agency of Georgia has approved “Daily” LLC’s acquisition of 100% of “Retail Investment,” better known as “Magniti.” This decision was made public today by the Competition Agency. As of 2023, “Magniti” operated 349 supermarkets nationwide, with total sales of 570 million GEL and a net profit of 2.4 million GEL. The company’s assets were valued at 245.5 million GEL. Founded in 2017, “Magniti” was established by businessman Cesar Chocheli's holding. “Daily,” founded in 2013, has focused on expanding supermarket chains in Georgia’s regions and also owns the “Gvirila” supermarket chain. According to its 2023 financial report, “Daily” held assets worth 129 million GEL and recorded sales of 327 million GEL, though it reported a loss of 5.4 million GEL last year. Businessmen Davit Kukhalashvili and Zurab Zakariadze own 51% and 37% of “Daily,” respectively. In addition, on August 6, 2024, the Competition Agency approved “Daily’s” acquisition of a 100% stake in “Foodmart.” As a result, “Daily” gained ownership of supermarket chains “Spar” and “Ioli,” and businessman Archil Gegenava, founder of these networks, became a 30% shareholder in “Daily” through “Holding.G.” Now, with today’s approval, the “Daily” group will unite “Daily,” “Spar,” “Ioli,” “Gvirila,” and “Magniti” under one umbrella, making it the number one player in Georgia’s supermarket sector. Despite the merger slightly increasing market concentration, the Competition Agency emphasized that the overall market remains competitive. The market concentration index (HHI) currently stands at 461 units and will rise to 581 units following the merger. The agency concluded that the market remains low-concentrated, with no significant impact on competitiveness. Read more: “Daily” Group Becomes the Leading Supermarket Chain in Georgia - Business - CBW

  • UK: Aldi market share at highest rate yet

    Discount Retail Chain Aldi UK’s share of the grocery market has hit 11% for the first time as its sales grow at the fastest rate since January 2024, new data shows. According to Kantar , Aldi’s market share rose by 0.3 percentage points from last year as its sales grew by 5.6%. Rival discounter Lidl’s sales surged by 9.1% in the 12 weeks to 23 March, taking its market share to 7.8%, 0.4 percentage points higher than a year ago. Lidl also attracted 385,000 more shoppers last month more than any other grocer and saw a double-digit rise in footfall. However, Ocado was once again named the fastest growing grocer, a position it has held for the past 11 months, as its sales increased by 11.2%. For the first time, the online supermarket took a 2% portion of the market. Meanwhile, spending on groceries at M&S rose by 13.1%, on top of the goods sold through its joint venture, Ocado. Tesco also boosted spending by 5.4%, almost half a billion pounds more than the same period a year ago and made the biggest share gain from 27.3% to 27.9%. Sainsbury’s reached 35 consecutive periods of year on year growth, with sales up 4.1% as it grew ahead of the market. Sales at Morrisons were 0.6% higher, while Waitrose, Iceland and Co-op also experienced positive sales, up 2.7%, 1.8% and 1%, respectively. Asda was the only UK supermarket to have experienced a decline in sales of -5.6%, as it held its 12.5% share of the market. Overall take-home sales at the grocers increased by 1.8% over the four weeks, compared with a year ago, the slowest rate since June 2024. Grocery price inflation rose slightly to 3.5% over the same period. Kantar head of retail and consumer insight Fraser McKevitt said: “With prices continuing to rise, supermarkets are mindful of the need to invest to attract shoppers through their doors. Promotional sales ramped up this month to 28.2% of total grocery spending, the highest level we’ve seen in March for four years. “Despite the recent surge, we’re still some way off the promotional records hit in the wake of the financial crisis. Average spending on deal in 2012 was 39.8%, meaning there could still be more headroom to go. However, the market has changed a lot in that time, with the discounters holding a far higher share today than they did 13 years ago.” Read more: Data: Aldi market share at highest rate yet #smartdiscount #aldi #uk #marketshare #growth #development #expansion #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

  • Germany: Aldi is giving up its online shop

    Discount Retail Chains Aldi Süd and Aldi Nord operated together as part of a joint venture in the online shop. But the joint online shop is to come to an end this year. On September 30, Aldi will end its previous online offer. Only four years after launch. A spokeswoman stated that Aldi wants to focus on its core area in the future, i.e. the stationary trade in food. In the online shop, on the other hand, there were mainly non-food items to buy. Be it the hot air fryer, the bicycle, the computer or even tools. There were only a few overlaps with the goods from the stationary stores: Aldi also sold some drugstore items, coffee products, pet food or wine online. But this will soon come to an end, the business has proven to be difficult for the retailers. According to information from the "Lebensmittelzeitung", Aldi's online business was not profitable on balance. The strong international competition would have required continuously high investments, which Aldi would have to earn in the store business in the north and south. According to the industry newspaper, around 80 employees are affected by the closure, who will lose their jobs by the end of the year at the latest. Aldi is not the first German discounter to take its online shop offline again. The business operations of the discounter Penny online shop (owned by REWE) were already discontinued at the beginning of 2022. Other competitors, on the other hand, continue to rely on the online business: Lidl has been running its digital shop since 2008, discount Netto (owned by EDEKA) followed suit in 2013. The range of online discounters is similar: mainly non-food products are offered, but often also wines and spirits. The competition in online retail is immense: According to the online monitor of the German Retail Association (HDE), Amazon alone has a total market share of around 60 percent. Aldi's strength clearly lies in brick-and-mortar retail: In the 2023 financial year, Aldi Süd and Nord together generated around 112 billion euros in sales worldwide. Aldi even recorded the largest growth abroad. Aldi Süd in particular has recently opened numerous new locations in countries such as the USA and Great Britain and announced further expansion steps. Last year, for example, Aldi wanted to hire 13,000 new employees in the USA. Customers can still place orders in the Aldi online shop until September 30. However, they should be informed about the closure in good time beforehand via newsletter and notice on the website, it said in a statement. However, the apps and websites of the two discounters will continue to exist. There, consumers can find recipes or current offers for food that are available in stationary Aldi stores. In the future, customers will also be able to continue to buy products from the non-food sector there. Read more: Aldi: Why the discounter is giving up its online shop #smartdiscount #aldi #aldinord #aldisued #website #ecommerce #nonfood #germany #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

  • Morocco: Kazyon receives a $30m IFC loan to fund expansion

    Egypt-based discount supermarket chain Kazyon has extended its partnership with IFC with a $30m loan to support the expansion of Kazyon’s store network in Morocco. The move will heat up an already competitive proximity discount supermarket segment, which includes Kazyon, BiM and LabelVie’s Supeco format. Kazyon entered Morocco in October 2023 and has now opened more than 150 stores as well as a distribution centre. Most of its stores are in Casablanca, but it also has stores in Rabat and Mohammedia. It is the retailer’s second market after Egypt. Kazyon was founded in Egypt in 2014. Kazyon has now opened more than 1,008  stores across 22 governates and has overtaken BiM, which had 418 stores at the end of 2024. In May 2023, Kazyon received a $165m equity investment from private equity company DPI to drive rapid expansion and subsequently opened a large number of new stores. In both Egypt and Morocco, Kazyon competes directly with Turkish proximity discount chain BiM. BiM entered Morocco in 2009 and quickly built a strong network of stores, mostly in Casablanca. However, it hit problems with the Moroccan government, which threatened to shut the stores down unless BiM reduced its dependency on imported Turkish products and stocked more Moroccan products. In December 2020 Helios Investment Partners acquired a 35% stake in BIM’s Moroccan business, at the time BiM had 534 stores in Morocco. Since then, BiM has also accelerated growth. In January 2024, BiM had 693 stores in Morocco. In March 2025 it has 818 stores and is the market leader in small format proximity retail. Kazyon wants to take it on directly, planning 200 outlets by the end of 2025 and talking about having a network of 600 stores by the end of 2027. The other player in discount in Morocco, LabelVie, also plans significant growth in proximity retail with its Carrefour Market/Express and Supeco formats. In 2024, LabelVie opened 91 stores, of which 73 were in Q4 2024. 84 of the 91 new stores were either Supeco or Carrefour Market or Express stores, both of which are small format, proximity stores. LabelVie also added 6 new Atacadao discounter hypermarkets. By 2028, LabelVie plans to have opened 953 stores, compared up from 270 stores in 2024. Within this, LabelVie is looking to have 49 Atacadao stores, just 18 Carrefour hypermarkets but 477 Carrefour Market and Carrefour Express stores (both smaller format, convenience stores) and 409 Supeco stores. Read more: Kazyon receives a $30m IFC loan to fund expansion of its store network in Morocco - Trendtype #smartdiscount #kazyon #bim #helios #morocco #egypt #growth #expansion #stores #ifc #investment #funding #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

  • China: Aldi a success in Shanghai expanding further afield

    Discount Retail Chain Aldi China has carved out a unique space in the retail landscape in Shanghai. It offers the convenience and accessibility of smaller stores like 7-11 and FamilyMart, but with the bonus of better value and a broader range of quality essentials typically found only at larger warehouse retailers like Sam's or Costco. Aldi's rise in Shanghai is no accident. The German-based discount retailer, which has opened 62 stores in the city over the past six years, has defied the odds in a fiercely competitive market by embracing localization with precision. Many foreign brands have struggled in China, but Aldi has transformed its stores into community hubs, winning over urban consumers with a strategy that blends efficiency, affordability and cultural adaptation. Rethinking retail: Aldi's playbook So, what's behind Aldi's success? A good understanding of local tastes and shopping habits. The retailer has redefined the supermarket experience by offering not just products, but shopping experiences tailored to Chinese consumers. Aldi's innovation shines in its fusion of Western and Chinese flavours. Take its Sichuan-style spicy crayfish salad, a ready-to-eat dish that blends the bold, fiery essence of Sichuan cuisine with the widely loved Chinese crayfish. This fusion exemplifies Aldi's ability to combine local culinary traditions with its signature, streamlined offerings. It's just one of many ways Aldi has adapted its products to local tastes. Moreover, Aldi's store design feels unmistakably Shanghai. The minimalist interiors, featuring natural wood finishes and contemporary touches, create an atmosphere that blends urban sophistication with a warm, welcoming vibe. Unlike the sterile, warehouse-style discount stores typically seen in the West, Aldi's Shanghai locations have become local gathering spots. Their modern yet cosy aesthetic, reminiscent of chic local cafés and boutique-style stores, appeals to urban professionals who value both practicality and visual appeal. Long retail experience Aldi is certainly no stranger to retailing. The family-owned chain was founded by brothers Karl and Theo Albrecht in 1946 after they took over the Essen grocery store opened by their mother in 1913. The business was split into two separate groups in 1960, Aldi North and Aldi South. Combined, they operate more than 13,000 stores in 18 countries. The entity operating in China is Aldi South. Aldi's philosophy of fusing local culture with low prices has succeeded globally because of the retailer's clear understanding of its target markets. In China, that means busy young professionals, office workers and pressed-for-time parents. These consumers appreciate Aldi's curated selection of ready-to-eat meals and its fresh, easy-to-cook options. Of the 2,000 stock-keeping units at an Aldi store, about 1,500 are daily necessities, perfect for quick trips during lunch breaks or after work. Aldi has strategically positioned its stores in bustling residential and business districts, maximizing convenience. The inclusion of café counters, offering quick, healthy snacks like freshly made rice bowls, has become a hit with locals seeking nutritious, fast-meal options. In fact, during my recent visit, I saw several professionals grabbing hot rice bowls and continuing on with their busy days. By embedding itself within daily routines, Aldi isn't just another store; it's engrained itself into Shanghai's urban fabric. This integration with the daily lives of customers fosters loyalty, turning new shoppers into repeat visitors. Tech-savvy retail power Shanghai's consumers are among the world's most digitally connected shoppers, and Aldi has tapped into this trend. The retailer introduced "scan-and-go" technology via its WeChat mini-program, allowing customers to bypass traditional checkout lines. This aligns perfectly with the city's demand for frictionless, tech-enabled shopping. Aldi has also introduced a home delivery service that ensures products are delivered within a 3-kilometer radius in under an hour. This level of convenience highlights Aldi's dedication to adapting to the tech-savvy lifestyle of Chinese shoppers. Aldi's commitment to local sourcing is another key element of its success. More than 80 percent of Aldi's products are sourced from Chinese suppliers. This not only supports local businesses but also ensures fresher products with shorter supply chains. Aldi's private-label products make up nearly 90 percent of its inventory, eliminating the middleman and keeping prices low while ensuring product quality. This is vital in a price-sensitive, increasingly discerning market like China, where consumers trust Aldi to provide great value without compromising safety or quality. Expansion beyond Shanghai: new frontiers Building on its success in Shanghai, Aldi is now poised for broader expansion. On April 19, the retailer will open two new stores in the neighbouring Jiangsu Province cities of Suzhou and Wuxi. Shopping habits in both places are similar to those in Shanghai, enabling Aldi to build on its success here easily. However, as Aldi expands further, especially beyond the eastern Yangtze River Delta region, it may face increased competition. Local players like Freshippo and Dingdong Outlets, which are adept at catering to Chinese consumers, could adopt similar strategies. Freshippo operates 60 stores in Shanghai, with private-label products accounting for over 50% of its offerings. The retailer has also worked hard to expand its range of daily necessities, positioning itself as a strong competitor in the convenience, value-driven retail space. To maintain momentum and thrive in China's diverse and rapidly evolving market, Aldi must fine-tune its region-specific offerings and strengthen links with local suppliers. China's vast food culture varies greatly from region to region. A "one-size-fits-all" approach will not suffice in a nationwide market of divergent consumer expectations. For example, products popular in Shanghai, such as locally brewed craft beers, may not resonate as strongly in a city with a more traditional cultural identity, like Guangzhou. In north-western cities like Xi'an, where the cuisine leans heavily on wheat-based products, Aldi would need to expand its selection of noodles and breads. In Hangzhou, a city famous for its tea, more tea-related products should be on the shelves. In southwestern cities like Chengdu, locals prefer spicy cuisine, so Aldi would have to adjust its product lines to include more Sichuan-style flavours. Watching the bottom line As Aldi continues to expand, it also faces the ongoing challenge of balancing profit margins with store growth. The discounter will need to keep prices of daily necessities low to retain its price-conscious consumers, but that could put pressure on its bottom line as it seeks to finance new stores. In other words, Aldi must carefully navigate between expansion and profitability. On the digital front, Aldi already has a solid foundation with its WeChat mini-program. To build on this, Aldi could add more personalized services, such as curated product recommendations, tailored promotions and a streamlined loyalty program. This would improve the user experience, increase customer retention and deepen brand loyalty. Moreover, Aldi can leverage data analytics to predict consumer behaviour more accurately. By understanding what consumers buy, when and why, Aldi could optimize inventory, offer timely promotions and create shopping experiences relevant to the local population. Read more: A success in Shanghai, Aldi is now expanding its retail acumen further afield in China - SHINE News #smartdiscount #aldi #china #expansion #wuxi #suzhou #userexperience #freshippo #dingdongoutlets #ilpl #711 #familymart #bjwentech #privatelabel #wechat #success #shanghai #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

  • Germany: from discounter to technology giant: How the Schwarz Group is reinventing Lidl

    Discount Retail Chain Lidl's owner Schwarz Group is an exemplary transformation into new business areas and the modernization of the "old". The Schwarz Group, which includes discounter Lidl and supermarket Kaufland, was long considered the epitome of conservative German retail. But while many reduced the company to cheap food and brochures, a huge change has taken place behind the scenes: Step by step, the group is transforming itself into one of the most ambitious technology providers in Germany with its own data centres, cyber security services, a cloud "Made in Germany" and massive investments in artificial intelligence. This transformation is not a PR gag, but part of a radical strategic realignment that rests on four major pillars and cleverly transforms a mistake of the past into a strength. 1. Digitization of retail: Lidl Plus, omnichannel and e-mobility A first building block was the introduction of the Lidl Plus app. What started as a pure customer loyalty program is now an intelligent tool for personalized advertising, digital coupons and data analysis. Particularly innovative are, for example: The integration of e-charging stations directly into the app. This allows customers to locate charging stations, start charging processes and pay, a clever step to promote app use and customer loyalty. The Schwarz Group consistently pursues an omnichannel strategy. The goal: Customers should be able to switch seamlessly between the online and offline worlds, for example through click & collect or real-time availability in the store. A digital infrastructure that makes classic retail models fit for the future. 2. Cybersecurity: From protection to business model In 2021, the Schwarz Group acquired the Israeli cybersecurity start-up XM Cyber, founded by a former Mossad chief, for around 700 million euros. They were joined by Cyber Observer, another IT security company. Both were initially used for their own security, but have since been successfully sold to companies such as SAP or Commerzbank. A hidden Cyber Defense Center in Heilbronn, which is more reminiscent of science fiction than a discounter, shows how serious the company is: Cyber security is no longer a marginal issue, but a central component of the business model. 3. Cloud Computing: Stackit as a German AWS Alternative The Schwarz Group has done what Amazon did with AWS: Under the name Stackit, it developed its own cloud infrastructure, initially only for internal purposes, such as for the IT systems of Lidl and Kaufland. But inquiries soon came from outside. The big difference to US providers like Amazon or Microsoft: Stackit's data centres are located exclusively in Germany and Austria and meet the strictest data protection regulations. This is a strong selling point, especially for medium-sized companies that need to handle customer data sensitively. Stackit is thus positioning itself as a European, data protection-compliant alternative to hyperscale's from the US or China. 4. Artificial Intelligence: Relying on Aleph Alpha and IPAI The Artificial Intelligence Innovation Park (IPAI) is a true flagship project being created in Heilbronn. By 2027, several thousand experts will be researching, founding, and developing AI technologies on up to 23 hectares, initiated and largely financed by the Schwarz Group and its charitable foundation. The central element: the investment in the Heidelberg-based start-up Aleph Alpha, which is developing a language model as a European alternative to ChatGPT. The Schwarz Group is not only investing financially, but also intends to use Aleph Alpha to develop AI applications that run directly in its own cloud, including in-house cybersecurity. This all creates a seamless ecosystem: Cloud + Cybersecurity + AI from a single source, Made in Germany. A quot e from Gerd Chrzanowski , CEO of the Schwarz Group, "Our IT manages around seven billion cus tomer contacts annually, we know one in three Europeans personally. If medium-sized companies also use our solutions, this hardly makes a difference in the system. At the same time, we are constantly learning through internal use and competition with global technology companies is constantly driving our quality higher." This may frighten some people. But it also demonstrates the clear strategic approach that is consistently pursued here. Costly Mistakes and Smart Consequences The Schwarz Group's digital success story was by no means predetermined. On the contrary: The company suffered some painful IT flops. Particularly well-known is the failed SAP implementation project, which was cancelled after seven years and an estimated investment of over €500 million. But instead of becoming paralyzed, the group drew clear conclusions: more control over IT, more in-house development, and a greater focus on lean, customized systems. This learning process formed the basis for today's digital success and shows that even setbacks can become the driving force behind transformation. "In 2024, around 400 employees from the digital division Schwarz Digits will return to Lidl to drive digitalization directly in the store business and to more closely integrate the brick-and-mortar and digital worlds." This clever step demonstrates that digitalization will not only be centrally managed, but also concretely anchored in the day-to-day operations of the stores and processes, a clear signal for a practical transformation. Conclusion What Lidl and the Schwarz Group have achieved is impressive: from a brick-and-mortar discounter to a tech group with its own cloud, cybersecurity solution, and AI research campus. And not despite, but also because of past mistakes. If you look closely, you will see in Lidl's history a blueprint for how even traditional companies can reshape their future with smart, focused, and collaborative digital strategies. Read more: Vom Discounter zum Technologieriesen: Wie die Schwarz-Gruppe Lidl neu erfindet #smartdiscount #google #amazon #germany #heilbronn #gerdchrzanoski #schwarzgroup #lidl #kaufland #alephalpha #stackit #sap #aws #xmcyber #lidlapp #emobility #drc #discount #retail #consulting #discountretail #discountretailconsulting

  • Serbia: Russia's Fix Price enters

    Discount Variety Retail Chain Fix Price, which specializes in the sale of consumer goods at "fixed" and lower prices, is preparing to enter the Serbian market, the Russian business newspaper Kommersant reported. It is planned that the first stores will be opened by the end of 2025, and Serbia will be the first European country where Fix Price will launch retail. Fix Price confirmed to Kommersant that it intends to enter the Serbian market, but did not specify the details, only stating that the market conditions and the structure of consumer demand in Serbia correspond to the conditions of their business model. Consumers can stock up on food and drinks, cosmetics, household chemicals, pet food, books, souvenirs, and even shoes and clothing at Fix Price stores. Unlike Russian retailers Svetofor and Mere, which already operate in Serbia, and which when opening their stores said that "they do not offer shiny tiles and expensive chandeliers, but supermarkets resembling warehouses and goods displayed on pallets and in a refrigerated chamber, at low prices", Fix Price retail stores are arranged according to the standards of the 21st century.   There are no economic obstacles to Fix Price's arrival, Dragovan Milicevic, an economist and former state secretary at the Ministry of Trade, told Bloomberg. "The energy sector is under sanctions, but the trade sector is not, so Fix Price can work freely in Serbia. On the other hand, Serbia has not imposed sanctions on Russia, the Serbian market is free for the arrival of Russian traders and cash flows between Serbia and Russia are free," Milicevic explains. Lidl, Delhaize and Mercator can breathe a sigh of relief... or maybe not When asked whether the arrival of another large retailer will increase competition in the retail market, Milicevic said: "It's unlikely that anyone is going to force Delhaize and other big systems like Mercator and Lidl to lower prices. These are large chains that have their own business policy that cannot be changed so easily even on an annual basis, and especially not from month to month or week to week, as some may expect." A paradise for the thrifty or a market with "stocks you can't miss"? However, the arrival of Fix Price, whose business model is based on low prices and wide availability of products, may be good news for consumers in Serbia, especially for those with lower purchasing power. Another chain with irresistible discounts, what could go wrong However, the key question is how Fix Price will manage to position itself in the Serbian market and what its pricing policy will be. According to Milicevic, they are likely to repeat the scenario seen at the arrival of Lidl, when prices were lower at the start, but later adapted to the competition. "Lower prices are likely to initially try to win over consumers. The question is also what kind of offer they will have. Will they import goods from branded manufacturers or will they focus on lesser-known, cheaper products, of lower quality. In order to seriously compete with large chains such as Delhaize or Mercator, they must offer a quality assortment at prices that will attract consumers, and not just cheap goods of lower quality, as is the case with retail Svetofor and Mere," explains Milicevic and adds that Idea used to have a margin of 12 percent, and after 10 years it has a margin of 37-40 percent. says Milićević. What is known about the Fix Price Fix Price has more than 6,500 retail stores in Russia, Kazakhstan, Belarus, UAE, Armenia, Uzbekistan and Mongolia. Information about employment at Fix Price in Serbia appeared on the job posting site HH.ru. The company, among other things, is looking for an HR expert who will form a team to expand the network in the Serbian market. Also, in the ads for the chief accountant and senior lawyer, work in Serbia is mentioned. There are 2,000 Russian-owned companies in Sri Lanka According to data from the summer of 2024, more than 2,000 companies founded by Russian legal or natural entities were registered in Serbia. A similar growth trend of Russian investments in Serbia was observed after the outbreak of the conflict between Russia and Ukraine in 2022. In 2021, only 80 Russian companies operated in Serbia. Bloomberg Adria asked the Ministry of Interior and Foreign Trade whether it is true that the Russian retail chain Fix Price is coming to Serbia and, if so, in which cities and when it will open its retail stores, but they did not answer questions by the time of publication of this text. Read more: Fix Price is coming to Serbia - will the Russian chain change the domestic retail market | Bloomberg Adria #smartdiscount #fixprice #serbia #expansion #growth #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

  • USA: Trader Joe’s roasts in-store retail media

    Trader Joe’s, owned by German Aldi Nord Group, stands firmly against the in-store retail media technology. “So it turns out we are all about marketing, the lowercase-M marketing being an actual market,” co-host Matt Sloan, vice president of culture and innovation, said in the grocer’s most recent episode of the “Inside Trader Joe’s” podcast.  Fellow co-host and Vice President of Marketing Tara Miller added that while other grocers have screens throughout their stores, robots roaming the aisles and smart carts, Trader Joe’s plans to steer clear of that flashy tech.  Instead, Trader Joe’s focuses on fostering the social experience of grocery shopping, the hosts said. “Instead of cold, impersonal, flat monitors, we have live crew members who are smart and fun to talk with,” Miller said “They’ll not only help you find what you’re looking for and discover new products, they’re happy to share their thoughts on these products.”  Trader Joe’s has never positioned itself as “a tech company,” which is a deliberate choice, the hosts said, adding that the grocer also doesn’t see the need to track its customers’ individual shopping behaviour. “We don’t track our customers’ shopping habits, their shopping patterns, their shopping choices, their shopping data. Basically, we just don’t track our customers… We look at our shelves and we look at what we sell,” Miller said. The Trader Joe’s executives even went so far as to claim that retail media is the “natural result of an undifferentiated shopping experience” as well as an “admission of defeat that shopping in those regular grocery stores was awful.”  This isn’t the first time the grocer has taken a hard stance against tech-focused in-store innovations. Trader Joe’s CEO Bryan Palbaum and President Jon Basalone sat down for a Q&A with “Inside Trader Joe’s” in August 2023 to say the grocery chain has no plans to introduce self-checkout kiosks to its stores.  Also that year, a Trader Joe’s podcast episode reminded listeners that the grocer doesn’t see a benefit to e-commerce, noting the online channel poses additional investment costs.  “For us, one of our values is providing a ‘wow’ customer experience, and that requires being connected as human beings to each other, as crew members, as customers,” Miller said during the most recent episode. “That doesn’t happen if you have screens constantly between you.” Read more: Trader Joe’s roasts in-store retail media | Grocery Dive #smartdiscount #traderjoes #media #instoremedia #socialmedia #usa #startegy #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

  • Germany: Richest German is the owner of Discounter Lidl

    Discount Retail Chain Lidl and its sister Kaufland are well know his grocery retail stores in Germany, but hardly anyone knows his face: Dieter Schwarz, founder of Lidl and Kaufland. He is not only the richest person from Baden-Württemberg, but also the richest German ever. With an estimated fortune of 41.3 billion US dollars (about 38.2 billion euros), he also ranks 37th in the global billionaire ranking of " Forbes ". Born in Heilbronn in 1939, Schwarz grew up as the son of an entrepreneur . His father Josef, a trained businessman, had taken over the business of Lidl & Co. Südfrüchtenhandlung in 1930 and thus laid the foundation for the family fortune. The small business later developed into a food wholesaler under the name Lidl & Schwarz KG.   After graduating from high school, Dieter Schwarz originally wanted to study mathematics. In the end, however, he decided to join the family business and completed a commercial apprenticeship there. The Schwarz Group is now one of the largest retail groups in the world His big breakthrough came in the early 1970s, when he opened the first Lidl discounter, inspired by the Aldi principle. Discounters were still the exception at the time, but Lidl grew quickly and became one of the largest players in European retail under his leadership. Kaufland followed in 1984, this supermarket concept was also a hit. Today, the Schwarz Group is one of the largest retail groups in the world. With nearly 14,000 stores in 32 countries, it generates annual sales of over 167 billion euros, making it the fourth largest retailer in the world after Walmart, Amazon and Costco. Dieter Schwarz has also expanded his business with his own production plants for chocolate, baked goods and beverages, as well as with his own container shipping company . Officially, the entrepreneur withdrew from the operational business in 1999. However, he retains control through his foundation and invests specifically in education, science and digitalization, especially in his German hometown of Heilbronn. Universities, research institutions and, from 2025, an innovation park for artificial intelligence (Ipai) will be built there. While other super-rich appear on talk shows or proudly show off their yachts, Schwarz consistently avoids the public. He rejects interviews as a matter of principle and there are hardly any photos of him. What is known about his private life: He is married and has two daughters, but according to media reports, they have deliberately decided against a career in the family business. Read more: Das ist der reichste Deutsche aus Baden-Württemberg – kennt ihr ihn? - Business Insider #smartdiscount #schwarzgroup #schwarzgruppe #lidl #kaufland #prezero #heilbronn #richest #germany #marketdevelopment #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

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