Discount Retail Chain Aldi dares to do business in China after six years, now beyond Shanghai’s city limits. But the step is not without risk. Wuxi, in Jiangsu Province, a 45-minute train ride from Shanghai: In the newly opened “Harmony City” shopping center, the glowing Aldi Süd logo shines on the wall, with a promotional stand in front of it. Employees in orange vests hand out toothpaste sets and tissues to passersby who register via QR code. He Jing stands in front of the new Aldi branch, set to open on April 19. “My impression is positive,” says the 25-year-old barista. She knows the German brand from her time in Shanghai, she explains. She likes the product range. As a single person, she also appreciates the package sizes, which are just right for individuals. In other stores, the quantities are often too large. On this day, promotional staff from the German discounter vie for the attention of passers by in the moderately busy shopping mall. In Wuxi, a city of millions that ranks among China’s wealthiest and highest-income cities, Aldi is still unknown. This branch is the first outside Shanghai. But it could become the starting point for a broader expansion of the German retailer in China. According to German Handelsblatt sources, another branch outside Shanghai is set to open on the same day, in Suzhou, located between Wuxi and Shanghai. Aldi Süd declined to comment on the matter. “We don’t comment on this topic,” the company said in a written response. The move into Shanghai’s surrounding areas was long overdue, says Marc Houppermans, a former top manager at Aldi Nord. Today, he advises retailers as an Executive Partner at Discount Retail Consulting, including on building discount operations in Asia. However, he doesn’t see the expansion as a guaranteed success. “Now comes the next phase, where they must test whether the Aldi discount model developed for cities also works outside the modern metropolis of Shanghai,” he emphasizes. Houppermans is confident, though, that more branches will follow if this test in Wuxi and Suzhou succeeds. Aldi Süd already has more than 60 branches in Shanghai So far, Aldi Süd has only operated its stores in Shanghai. In April 2024, the company reported 56 branches; estimates now suggest the number is between 60 and 70. Here, too, the secretive company remains tight-lipped. But until now, Aldi Süd had not ventured beyond Shanghai’s city limits. Since entering the Chinese market in 2019, expansion has been a recurring topic. Three years ago, Roman Rasinger, head of Aldi’s China operations, told Handelsblatt in an interview: “China is and remains one of the most interesting markets in all areas,” with “huge potential in the food market.” Aldi’s China offensive: The discounter plans hundreds of new stores Back then, he hinted at growth beyond Shanghai. The Yangtze Delta, with over 100 million inhabitants, was a priority for Aldi. Even for Shanghai alone, Aldi saw the potential for “a three-digit number of stores.” Aldi has great capacity to “fill white spots on the supply map,” Rasinger predicted. Only now, however, is the company taking its first tentative steps in that direction. German retailers like Obi and Lidl have failed in China It’s not surprising that Aldi Süd waited so long to expand: “The Chinese market is highly competitive and changes quickly,” Aldi Süd stated in 2024. Unlike in Germany, the company didn’t position itself as a low-budget discounter in China but initially targeted higher-income groups. Now, Aldi Süd positions itself in the mid-range, appealing to the growing middle class with “high quality and affordable prices.” The Chinese retail sector is fiercely competitive; many European players have failed due to the cutthroat pricing of rivals. In Shanghai, you can still occasionally spot logos of the French upscale supermarket chain Carrefour, which has long since withdrawn from the Chinese market. The German hardware chain Obi failed, as did Aldi’s competitor Lidl, which gave up after a two-year online attempt. One challenge is China’s diversity: For instance, culinary preferences vary greatly by region, requiring regionally tailored product ranges. In Shanghai, China’s wealthiest and most affluent city overall, Aldi branches compete fiercely with the Hema chain, backed by Chinese internet giant Alibaba, as well as U.S. chains Costco and Sam’s Club, a Walmart offshoot. To survive here, profitability must be closely monitor and for each store and unprofitable ones closed if necessary. That’s exactly what Aldi Süd did in Shanghai’s Putuo district in 2024, as the company confirmed last year. Elsewhere, expansion continues. Aldi collaborates closely with delivery services in Shanghai For Aldi Süd, the years since its 2019 market entry have been challenging. A burst real estate bubble and the aftermath of Shanghai’s two-month COVID lockdown in 2022 have dampened Chinese consumer sentiment long-term. Add to that a retail sector that has rapidly digitized, increasingly becoming an online delivery service. In Shanghai, scooter couriers from major providers like Meituan and Ele.me deliver Aldi bags to doorsteps late into the evening even at 11 p.m. if requested. Orders are placed via smartphone, Aldi branches prepare the items, and couriers navigate through traffic, even in pouring rain. China Handelsberater Bodo Kluxen sees this bridge to e-commerce as one of Aldi’s strengths. The brand leverages digital promotions, loyalty programs, and mobile payment solutions to enhance the shopping experience, says Kluxen, who also teaches marketing and intercultural management at the Baden-Württemberg Cooperative State University. Another strength is the extreme cost efficiency in the supply chain. The high proportion of private-label products ensures low costs while maintaining quality control. But Kluxen sees this as the biggest challenge for expansion beyond Shanghai. “Developing new markets requires efficient management of logistics, transport, and inventory to avoid shortages or overstocking,” he says. Consultant Houppermans expects Aldi to “focus first on the urban region and Shanghai’s surrounding areas for logistical reasons.” Trust in the “Made in Germany” brand The new Wuxi branch isn’t yet accessible. But a typical Aldi store can be seen in Panlong, on Shanghai’s western outskirts. It’s an entertainment and shopping district styled like a historic water town, common in the metropolis and its surroundings, with a river, curved bridges, winding alleys, and souvenir shops. At the entrance to this newly built area, an Aldi Süd branch targets passers by from China’s middle class who can afford the district’s pricier restaurants. In the aisles, you’ll find Chinese specialties like mussels and packaged chicken feet 400 grams for about 2.70 euros. It’s pricier than at local markets but hygienically sealed and packaged. Food safety remains a major concern for Chinese customers, who recall past milk and meat scandals and thus trust the “Made in Germany” brand. A shelf over, there are German and Alsatian wines Riesling and Gewürztraminer plus beer in plastic bottles, brewed “German-style.” A closer look reveals the beer comes from neighboring Anhui province. Aldi uses a high share of local products to secure supply chains and cut costs while catering to Chinese tastes. For those craving authentic German flavours, the hot food counter offers ready-to-eat pork knuckles, sausages, and grilled meats. “The expansion of Aldi in China underscores the enormous potential for discounters that can balance quality and affordability while adapting to local market conditions,” explains consultant Kluxen. He sees the discounter as a model for other retailers looking to enter the Chinese market, demonstrating how to strategically penetrate a highly competitive market and build long-term success. Read more: Aldi Süd: Discounter startet zweite Stufe der Expansion in China #smartdiscount #aldi #china #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

Discount Retail Chain BİM has decided to partially divide its 100 percent subsidiary, FİLE Market Mağazacılık Anonim Şirketi, in a subsidiary model. In the statement made to KAP, the following information was given: "In this context; Pursuant to Articles 159 to 179 of the Turkish Commercial Code ("TCC") regulating the institution of division, the Capital Markets Board's ("CMB") Communiqué No. II-23.2 on Merger and Demerger (Communiqué), and other legislative provisions, some of the assets and liabilities of our Company are transferred to FİLE Market Mağazacılık A.Ş., a 100% subsidiary of our Company, in accordance with the provisions of the relevant legislation, in a manner that does not impair the integrity of the business. The transaction is carried out on the basis of the financial statements dated 31.12.2024, In the partial division process with the subsidiary model to be carried out within the scope of Article 17 of the Communiqué, it is not necessary to obtain an independent audit report and the opinion of an expert institution in accordance with paragraph 2 of the said article, taking into account the provision in paragraph 3 of the said article. Since the assets and liabilities to be transferred by our Company as a dividing party do not meet the materiality criteria determined in Article 5/1/b of the CMB No. II-23.3 "Communiqué on Significant Transactions and the Right to Leave", there is no significant transaction and the "Right to Separation" does not arise for our shareholders in accordance with the provision 15/ç of the said Communiqué. Regarding the partial division transaction within the scope of this decision; Preparation of the Division Agreement, the Division Report and the Announcement Text and applying to the CMB for the approval of other documents and the Announcement Text. Submission of the Division Agreement and the Division Report, the consolidated financial reports for the last three years and the accounting period of 31.12.2024, which have been independently audited, to the shareholders in accordance with the provisions of the TCC, CMB and relevant legislation, Submission of the Division Agreement and the Division Report to the approval of the shareholders at the General Assembly of our Company. Within the framework of the provisions of the Law No. 4054 on the Protection of Competition and other relevant legislation, there is no issue that requires permission, Pursuant to Article 174 of the TCC, it has been decided to make three announcements in the Turkish Trade Gazette with an interval of seven days regarding the right of our Company's creditors to notify their receivables and request collateral. Read more: BİM has made its decision for File market | Retail Engineer #smartdiscount #file #bim #turkey #separation #listed #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Chveulis recently opened its 3rd store in Kaspi, Georgia, has been nothing short of triumphant. Under the ownership of Daily Supermarkets, the discount start-up format, supported by DRC Discount Retail Consulting, has garnered remarkable success in Georgia. This achievement reinforces the idea that discount retail is a key catalyst for the rapid advancement of modern retail in developing countries, with customers readily embracing the concept. As a result, the company is gearing up for the swift establishment of more stores in the coming months, capitalizing on the enthusiastic reception received in Kaspi. Market Expansion With the recent opening of the 3rd store in Kaspi, Georgia, discounter Chveuli is poised to expand further. The success of the discount start-up format in Georgia indicates a strong market potential, showcasing the effectiveness of this model in catering to the needs of the local population. Expanding to new locations will help meet the increasing demand for discount retail stores, offering affordable and quality products to a wider consumer base. This expansion is a testament to the viability of discount retail as a solution for developing and emerging markets, providing valuable opportunities for both the company and its customers. Rapid Customer Embrace of Discount in Georgia The rapid customer embrace of the discount retail concept in developing countries is evident in Georgia, where discounter Chveuli has seen an overwhelming response. Customers in Georgia have readily accepted and shown enthusiasm for the discount retail model, propelling the success of the newly opened store. This positive reaction underscores the significance of understanding the unique needs and preferences of customers in developing countries, a crucial factor in the company's burgeoning success. By aligning with customer demands and providing value, discounter Chveuli is solidifying its position in the market. The Expansion Plans of Discounter Chveuli The swift opening of more stores in the coming months highlights the company's ambitious growth plans as they respond to the increasing demand for their services. The expansion strategy underscores the confidence in the potential of the discount retail market in Georgia, as the company seeks to meet the evolving needs of the local consumers. Future growth initiatives will further solidify discounter Chveuli's position in the retail industry, reaffirming its commitment to providing accessible, affordable, and quality products to communities across Georgia. Read more: https://www.facebook.com/chveuli # Chveuli #smartdiscount #georgia #startup #daily #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

Discount Retail Chain Aldi Ireland has reported higher sales figures for 2023 but lower profits for the year. Aldi Ireland said its sales rose by 3.4% to €2.102 billion from €2.032 billion in 2022. But its pre-tax profits for the year fell by 2.1% to €16.83m from €17.184m as it said it continued to invest in supporting its supplier network amid efforts to manage "stubborn" input cost. Aldi is marking 25 years in Ireland, having grown from an initial two stores in 1999 to 162 today and after investing €2 billion in capital expenditure. During that time the retailer has spent more than €10 billion with Irish suppliers, and now supports a network of more than 330 Irish businesses across the country. It noted that purchases from Irish suppliers have increased by 58% since 2019. Aldi has paid more than €1.3 billion in wages and today employs more than 4,650 people across every county in Ireland over the past 25 years. The retailer also said today it had completed the purchase of a new 60-acre site in Co Kildare, investing another €24m in the Irish business. The site is adjacent to the motorway network and in close proximity to its existing distribution centre and corporate headquarters in Naas, Co Kildare. Aldi said the investment is part of the company's long term strategic growth planning. Over the last few months, Aldi has announced supplier contracts with suppliers including Dawn Meats, Irish Dog Foods and Manor Farm to the value of over €190m. The retailer also recently marked its 10-year partnership with FoodCloud donating four million meals to the charity to date. Aldi Ireland's Group Managing Director Niall O'Connor said the challenge for retailers and consumers of balancing affordability and costs, alongside environmental and sustainability considerations, has never been more acute. "We're more committed than ever to meeting that challenge. Being a discounter is in our DNA at Aldi and we are committed to remaining Ireland's best value retailer," Mr O'Connor said. "What is also in our DNA is planning and preparing for the medium to long term. The investment in the site in Naas means we have resources and infrastructure to support growth at the opportune time," he added. Read more: Aldi Ireland's pre-tax profits dip but sales up 3.4% #smartdiscount #aldi #sued #ireland #profit #sales #development #expansion #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #foodcloud

Discount Retail Chain Lidl Germany is jumping on the Dubai chocolate hype and is launching its own Dubai chocolate. This will even be available in two flavors. The hype surrounding Dubai chocolate is not letting up. Some restaurants in Dubai are already serving burgers and pizzas with it. Now the discounter Lidl is also jumping on the trend and will be selling two different types of chocolate under its own brand "Deluxe" from mid-December. Initially, however, the chocolate will be limited to 10,000 bars and only available in selected stores. So if you want to get your hands on one, you'd better be quick. Dubai chocolate in two flavors Chocolate lovers can buy Lindt's Dubai chocolate in two different flavors. The chocolate will be available in a milk chocolate and a dark chocolate version. Lidl has not yet revealed the price of the Dubai chocolate. However, since Lidl is a discounter, it can be assumed that the 80-gram bars will be significantly cheaper than, for example, the Dubai chocolate from Lindt, which was available in some Lindt stores for 14.99 euros. Result: Lidl  once again moves the masses. Limited quantities of Lidl  Dubai Schokolade  let a Lidl stores literally explode Read more: Lidl bringt eigene Dubai-Schokolade auf den Markt #smartdiscount #lidl #germany #dubaichocolade #dubai #hype #tiktok #privatelabel #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #youngcustomers

Discount Variety Retail Chain Action is already worth around 32 billion euros. This is more than the parent company of Albert Heijn, Ahold, chemical group DSM or medical device manufacturer Philips, among others. For shampoo, a tea towel, craft book, bicycle light, socks and sweets, to name but a few, consumers are increasingly turning to Action. It helped that the prices of a total of 4,000 products were lowered. In the first nine months of the year, an average of 17.6 million customers visited Action's stores. This is 15 % more than one year previously. More sales Turnover rose by more than 22 % to more than 3.3 billion euros in the third quarter. This means that, on average, customers are now spending more euros than last year. It also helped that the total number of stores increased by 70. But we also bought more in the existing stores: a plus of more than 9 %. Substantially more profit Profit also increased, leaving 501 million euros at the bottom line, which is an increase of 31 percent compared to the same period a year earlier. Incidentally, this is the so-called EBITDA profit, which is the profit before deduction of interest, taxes and depreciation. Action itself does not say anything about the net profit. Investor 3i only mentions the EBITDA profit. Worth 32 billion euro Action's strong growth (since January 2022, the number of stores has increased by more than 800, or 40 percent) can also be seen in the value that majority shareholder 3i attributes to it. According to 3i, Action is now worth more than 32 billion euros. Five years ago, it was 10 billion euros. Ikea and Action lower prices, 'but many stores can't keep up' When determining the value, 3i makes a number of assumptions, so that the value can also be a bit more or less. But accountants must put their signatures on these types of calculations so that the value will not deviate significantly. Action was already the Dutch retail chain with the largest number of stores ever. It is now also one of the largest Dutch companies. If Action were listed on the stock exchange, it would fall just outside the top 10 most valuable companies. Action is worth more than Ahold Delhaize, the parent company of Albert Heijn and Etos, among others. Ahold is now worth around 30 billion euros on the stock exchange. Action is also worth more than other well-known Dutch companies such as Philips, ABN AMRO bank, insurer NN, paint manufacturer AkzoNobel and employment agency Randstad. Successful discounters "Many consumers do not have enough budget to survive, just look at the figures about children who go to school without breakfast," retail expert Eva Rutten recently said about the success of discounters such as Action. "Even for many people above the poverty line it is difficult to make ends meet." Consumers who do not necessarily need low prices also come to discounters, she says. "People are less ashamed to buy in cheap shops these days. You see that some customers buy very cheap brands in addition to more expensive brands." Twelve countries Action now has more than 2800 stores in twelve countries. Next year Action will also start in Switzerland and Romania. Spokesperson Lucie Hoopman does not want to say how many branches Action sees space for there. In the Netherlands, the major growth seems to have stopped, at least in terms of the number of stores. There are now 417 stores here, three more than last year. Hoopman does not want to say whether Action is interested in Blokker properties: "the stores are still open, so it is still a bit early to be concerned with this". Action lowers prices of 2500 products The Netherlands is an important market for Action, says Rutten. "But keep in mind that the more than 400 Actions in our country account for only about 15 % of the total number of Action stores, and Action has already taken some of Blokker's market share." Read more: Action is now worth more than Albert Heijn's parent company after profit jump #smartdiscount #action #3igroup #expansion #growth #profit #sales #revenue #development #value #capitalvalue #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl Germany is apparently planning to finance its expansion by selling real estate packages. In other words, the discounter relies on so-called "sale and lease back" concepts. In this case, the group sells its real estate in order to then rent it on. In contrast to other retailers, however, Lidl does not offer less sought-after properties in a B-location, but locations with a high degree of attractiveness. A current portfolio called Saphir, which was launched on the market without a broker, includes particularly valuable properties. Similar financial construct was used by Aldi Australia did with its distribution centers in 2020. Read more: Lidl: With this unusual strategy, the discounter is driving expansion - Business Insider #smartdiscount #lidl #saleandleaseback #financialconstruct #germany #australia #stores #capital #investment #valuation #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl is bringing its own Christmas truck onto the streets in Great Britain, declaring war on Coca-Cola's cult truck. Brilliant marketing strategy or just plain cheeky? The German discounter Lidl is launching a campaign in Great Britain with its own Christmas truck in the style of its own brand Freeway-Cola, and is thus directly competing against Coca-Cola's iconic counterpart. The 15-ton, 20-meter-long truck will tour nine British cities from November 14th to December 1st. At each stop, a "pop-up wonderland" will be set up, in which the first 2,000 visitors will receive a gift. Every tenth gift contains a "Golden Ticket" worth £100, redeemable via the Lidl Plus app. You can also submit your Christmas wishes - Lidl will then fulfill some of them. "Giving to the communities we serve is really important to us," said Joanna Gomer, Lidl UK's marketing director. "With our new Freeway truck, we're touring the country, handing out gift boxes, festive food and granting wishes to make dreams come true." As a special highlight, Lidl is inviting visitors into an oversized gift box where a bell can be rung to reveal a surprise. There's also the chance to try special "Snowmallows" biscuits. Expert calls campaign "sly and on-brand" The truck, designed like a giant can of Lidl's own brand Freeway Cola, is being released at the same time as Coca-Cola's famous Christmas truck, which has been visiting cities around the world since 1995. Richard Exon of creative agency Joint describes the Lidl campaign as "sly and on-brand - something worth talking about." Coca-Cola has not yet commented on the matter. Read more: Lidl greift Coca-Cola mit Weihnachtstruck frontal an #smartdiscount #lidl #freeway #cocacola #uk #marketing #brand #pl #privatelabel #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain KAM Market has received a €6 million loan from the European Bank for Reconstruction and Development (EBRD) to support its expansion plans and sustainability initiatives. The loan will be used to finance the modernisation of KAM’s existing stores and logistics facilities, making them more energy efficient, and to expand its modern grocery chain throughout the country, the EBRD noted in a statement. The funds will also be used to upgrade KAM’s distribution centre and to ensure compliance with the Building Research Establishment Environmental Assessment Method (BREEAM) principles, which rate buildings based on their sustainability features. The EBRD will also provide advisory programmes, funded by the EU, to support KAM’s strategic management and corporate governance improvements. Hard Discounter KAM is widely considered the first hard-discount retail chain in the Western Balkans and operates 80 stores across 20 cities in North Macedonia, with expansions into Bulgaria (24 stores) and Kosovo (23 stores) in recent years. Founded in Skopje in 1999, KAM has grown into a major player in North Macedonian retail. Named after its founder, Gotse Kamchev, KAM Market drew inspiration from German chain Aldi to offer quality essentials at affordable prices. The store assortment includes a wide range of food and non-food products, including private-label brands. In 2022, KAM opened a 60,000-square-metre logistics facility in Skopje, the biggest in North Macedonia. KAM’s main competitors in North Macedonia include local players Stokomak and Tinex, and Greece’s Vero. Further the discounter Lidl is also preparing to enter the market in 2025. In June 2023, large Greek retail group Veropoulos invested about €2 million to open a new Vero Market store in Kumanovo, as part of its efforts to expand its presence in North Macedonia, where it celebrated its 25th anniversary. Read more: North Macedonia’s KAM To Boost Sustainability Efforts With €6m EBRD Loan | ESM Magazine #smartdiscount #kam #northmacedonia #expansion #growth #ebrd #loan #sustainability #marketdevelopment #sustainability #breeam #bulgaria #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain KAM Market has opened a new logistics center in Skopje after an investment of 12 million euros ($12.6 million). On a total area of 60,000m², KAM presented the largest logistics center in Macedonia, which was built according to the most modern standards. The facility is located just a few kilometers from the center of Skopje and covers an area of 16,000 m² and has a capacity of 6,800 pallets for dry products and 2,500 pallets for frozen products, fruits, vegetables and fresh meat. KAM Market invests 12 million euros This investment, worth 12,000,000 euros, ensures speed and efficiency in operation, which contributes to huge price savings on the products that are passed on to the end consumer. The logistics center has its own quality control department, which carries out regular checks of the items at the entrance on a daily basis, guaranteeing the freshness and quality of all products. The process of receiving and storing products at special temperature regimes in suitable chambers such as fruits, vegetables, meat, chocolate, dairy and frozen products are subject to strict controls. For KAM, the freshness, safety and quality of all products is our top priority! The regular supply of all KAM stores nationwide on a daily basis is independently implemented and controlled by KAM Market. The modern equipment and modern electric forklifts used not only ensure maximum efficiency, but also significantly minimise physical work throughout the building. The logistics center offers more than 150 employees modern working conditions, appropriate remuneration and a pleasant atmosphere. The logistics centre of KAM Market makes an active contribution to environmental protection with its way of working. 100 tons of waste are recycled here every month, and the fully optimized distribution process saves 5 million kilometers of road per month, which directly saves 900 tons of CO2 emissions into the atmosphere. With its new logistics center, KAM has brought the European operational standards in food retail to Macedonia, so the motto "High quality – low prices" is not a simple phrase, but a reality that is practiced in KAM. KAM, based in Skopje, was founded in 1999 and currently operates 74 supermarkets in Macedonia. The trader also has stores in neighboring Bulgaria and Kosovo. Goods from Germany are also part of the KAM Market range. Read more: KAM Market opened the doors of the largest logistics centre #smartdiscount #kam #northmacedonia #investment #expansion #growth #scm #logistics #distribution #warehouse #distributioncenter #ebrd #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

Discount Retail Chain Grocery Outlet's interim president and CEO Lindberg, said in the earnings call that system upgrades for the retailer that began in August 2023 led to significant troubles for the Grocery Outlet, “including poor data visibility, slow system speeds, and a loss of tools and functionality.” “These issues hurt our buyers’ ability to write purchase orders efficiently, our inventory planning and supply chain teams’ ability to accurately manage inventory, and our operators’ ability to see real-time inventory in their order guide to bring product into their stores. The impact on the business has been significant,” Lindberg said.  Lindberg said Grocery Outlet “missed the mark” earlier in 2024 due to “a combination of pricing we took to re-establish healthy margins that coincided with competitive pricings that picked up.” Grocery Outlet reported that in the third quarter net sales increased 10.4% to $1.11 billion, but comparable store sales grew a mere 1.2%, which was driven by a 2% increase in the number of total transactions.  That bump in total transactions was partially offset by a reduction in transaction size of 0.7%, according to the retailer.  Meanwhile, gross margin dropped 30 basis points to 31.1%, and administrative expenses jumped 9.5% to $304.6 billion, representing 27.5% of net sales. Adjusted EBITDA increased 6% to $72.3 million during the quarter.  “While we were disappointed with our weaker comp store sales of 1.2%, given the execution issues I mentioned above, we delivered strong double-digit top line growth,” Lindberg said in the earnings call.  Grocery Outlet opened five new stores during the quarter, bringing its total store count to 529 locations. Lindberg said the retailer is refocusing on its core principle of providing value to customers.  “As mentioned, we must consistently deliver across our key value metrics to create an exciting treasure hunt shop every time the customer steps foot in one of our stores,” he said. “Consumers continue to prioritize value, and we are well positioned to capture growth in this environment.” Though Grocery Outlet has faced setbacks due to competitors offering lower prices, Lindberg said the chain does not believe the competition is “a fundamental impediment to getting back to where we want to be on value.” “We have a strong history of navigating changing competitive environments, and we will continue to balance value and margin with our opportunistic buying model,” he said. Grocery Outlet Chief Financial Interim Officer Lindsay Gray said in the earnings call that looking forward, the retailer expects comparative store sales growth of 2% in the fourth quarter and 2.4% for the full year.  Gray added that Grocery Outlet expects to add 66 new stores this year, which includes the 40 locations purchased from United Grocery Outlet in April and 26 organically opened stores. That purchase expanded the grocer’s brick-and-mortar footprint into the Southern states of Tennessee, North Carolina, Georgia, Alabama, Kentucky, and Virginia. That 66-store addition is up from the 60-store figure Grocery Outlet said in late February that it planned to add by the end of the year. “Broadly speaking, at this point, we believe the full year of fiscal 2025 should be framed around a return to our long-term growth and algorithm targets, which, as a reminder, are comparable store sales growth of 1% to 3%, gross margin of approximately 30.5% and adjusted EBITDA margin of approximately 6%, building to this full-year number as the year progresses,” Gray said.  Lindberg spoke at greater length on Sheedy’s recent departure during the question-and-answer portion of the earnings call, reiterating that “this last year has been really difficult” due to operational challenges associated with its systems transition.  “You know, working with RJ for many, many years, we were patient. We felt like that was the right thing to do, to be patient, but I can tell you the same way that you all might have been feeling about our performance, we were feeling that internally as well,” Lindberg said. “So we finally got to a point after the last board meeting where we sat down, we had a frank conversation, and we had an agreement to move forward.” He emphasized that Grocery Outlet’s executive leadership had no major disagreement with Sheedy that led to his departure. “There’s no new finding that you guys will learn about later; there’s no other shoe to drop,” he said. “This was just a little bit of inconvenient timing and sort of a function of how things played out, nothing more.” Read more: Grocery Outlet to refocus on value to right the ship #smartdiscount #groceryoutlet #usa #ebit #growth #development #valueformoney #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

According to the latest "Loyalty Program Monitor 2024" survey conducted by ARC Rynek i Opinia, 72 percent. of Poles use at least one loyalty program, which means an increase of 8 percentage points compared to 2023. This result confirms that loyalty programs are becoming an integral part of consumers' purchasing strategies. "The increase in interest in loyalty programs is not due to the emergence of new players on the market, but is the result of the activities of leaders in the retail sector," emphasizes Sylwia Miszczyk, research project manager at ARC Rynek i Opinia. Rivalry of market leaders The two largest discount chains – Biedronka and Lidl – played a key role in the growing popularity of loyalty programs. Both chains intensively promoted their programs (Moja Biedronka and Lidl Plus), offering customers dedicated promotions and discounts. It is these activities that have attracted new users, who are increasingly willing to take advantage of the benefits offered. "Marketing campaigns and a competitive promotional offer addressed to loyalty program participants were crucial in attracting new users," adds Miszczyk The most popular loyalty programs in Poland In 2024, the most popular loyalty programs in Poland are: Moja Biedronka – 46% of users, Lidl Plus – 24% Orlen Vitay – 16% Rossmann Club – 12% Kaufland Card – 10% and Żappka Program – 10%. The popularity of these programs is due to frequent shopping in a given store, the simplicity of the rules of participation and the adaptation of the offer to the needs of customers. Consumers also appreciate intuitive mobile apps that make it easy to use promotions and track progress What determines the success of loyalty programs? The study identified several key factors that affect the regular use of loyalty programs. The most frequently mentioned reasons are: Frequent shopping in a given store (33 percent), Clear and easy-to-use mobile application (24 percent), Simple rules of participation (24 percent), Offer of benefits tailored to individual needs (19 percent), Frequently changing offer of discounts and rewards (18 percent). "The intuitiveness of the mobile application and an attractive promotional offer are the key elements that make customers willing to engage in loyalty programs," emphasizes Miszczyk. The future of loyalty programs The results of the study clearly show that loyalty programs are not only an important tool for retailers, but are also becoming a key factor influencing consumers' purchasing decisions. The future of the loyalty program market in Poland seems stable, and further competition between leaders such as Biedronka and Lidl may further increase customer engagement. Read more: Moja Biedronka and Lidl Plus are the most popular loyalty programs in Poland. Why are consumers using them more and more often? #smartdiscount #lidl #biedronka #zapka #rossmann #kaufland #Orlenvitay #app #users #experience #loyalty #program #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google