Discount Retail Chain Aldi UK has updated its list of priority locations across the country, showing where the discounter now is hoping to build new stores following public demand. Last month the supermarket called upon the nation to reach out and tell Aldi where the UK most needed a new store. It received thousands of requests and reviewed the list of locations, which it now will use to aid its search over the coming years. It comes as the discounter aims to hit its long-term target of 1,500 stores across the country, having currently more than 1,020 stores in its network. Aldi UK managing director of national real estate Jonathan Neale said: “We want to make high-quality food accessible to all, but we can’t do that while there are still some towns and areas that either don’t have an Aldi or have capacity for additional stores. “We recognise there is huge demand in certain regions for more stores, which is why we decided to get the public’s input on our latest list of priority locations. “They have helped us identify where demand is greatest and we will continue to work to bring Aldi to as many people as possible.” The retailer added that it is still looking for sites which may fit its requirement of 20,000 sq ft store with around 100 parking spaces, or within the M25, sites that are around 5,000 sq ft in size. Read more: Aldi reveals new store location wish list with public hot spots (grocerygazette.co.uk) #smartdiscount #aldi #uk #expansion #store #businessdevelopment #growth #hotspots #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Tiendas 3A, owned by the AJE Group, opened its first store in Lima competing with the hard discounter Mass. This new initiative demonstrates the Peruvian company's commitment to diversifying and expanding its portfolio, offering consumers an affordable and quality shopping option. 3A stores are designed to meet the growing demand for low-cost products while maintaining the company's signature standards of excellence. With this strategy, the AJE Group seeks to position itself as a key player in the "hard discount" segment, competing directly with the Intercorp Group's Mass store chain, which currently leads this market. Where did the AJE Group open its first 3A Store? As Peru Retail learned, the first 3A store opened its doors last Saturday in the San Juan de Lurigancho district, on Fernando Wiesse Avenue, where it will compete directly with more than two dozen Mass stores in the area. In addition, the meaning of the 3As was revealed: savings, high quality and agility. This first store marks the beginning of an ambitious expansion plan for the brand, which in the coming days will open stores in Salamanca and Surco, as well as another store in San Juan de Lurigancho, a district considered strategic for its growth. It should be noted that Ignacio Gómez Escobar, a renowned retail consultant and advisor specializing in hard discounting, revealed to Peru Retail that the AJE Group would enter the hard discount market in the local market this month. "It is an ambitious project that is going to be very interesting for Peru," said the retail expert. In addition, he stressed that the entry of the AJE Group will represent significant competition for Mass, which has currently launched an ambitious expansion plan. The Intercorp brand plans to open approximately 300 new stores, with the goal of exceeding 1200 locations by the end of the year. In addition, Gómez Escobar (DRC Associate) also confirmed the upcoming arrival of the Chilean chain Ahorro Food Depot, reflecting the interest of various companies to enter the Peruvian hard discount market. The retail specialist pointed out that Peru is presented as a market in constant growth and with great prospects, attracting new players and fostering a dynamic and competitive environment. Read more: Tiendas 3A, part of the AJE Group, opens its first store in Lima and prepares more openings (peru-retail.com) #smartdiscount #tiendas3a #ajegroup #tiendasmass #peru #intercomgroup #expansion #businessdevelopment #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain ALDI Süd Germany leads 1-0 and where is the competition to react? ALDI started with interesting coupon discounts of Euro 5.- with a minimum basket purchase of Euro 40.- from last Friday June 14th onwards. This is in line with the UEFA European Soccer Championship EURO 2024 which is organised in Germany. The coupon discount is a well-known rehearsed move of ALDI after the success of the previous coupon discount promos. And competition in German food retailing is still in the training camp? This week Kaufland Germany, owned by the Schwarz Group, tried to compensate. Kaufland Germany offers Euro 2.- discount at Euro 40.- and only for customers with KauflandCard as part of its loyalty program. It wasn't in. ALDI can enjoy its image as the German price leader in peace and quietness. Let's see if LIDL Germany, as official partner of the EURO 2024, also takes a step further towards prices reductions or only keeps to nice images and words. #smartdiscount #germany #coupon #em #uefa #euro2024 #loyalty #promotions #aldi #kaufland #lidl #netto #penny #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

At a time when American consumers are looking to save money when they shop, the store closures affecting Family Dollar and 99 Cents Only came as a surprise to some. Despite this news, the retail industry as a whole remains bullish on the channel. Playing an ever-growing role within the aisles of dollar stores are private label products. Leading retailers in the channel have grown their respective assortments in recent years by developing items that are something other than name-brand equivalents. This continued effort is not only providing high-value items to consumers but also offering points of differentiation for each retailer. For example, when Dollar General launched its proprietary Clover Valley line nearly 30 years ago, it did so intending to carry products that would be equivalent to name-brand items currently available. But as has been seen with many retailers in recent years, the mindset of the dollar store’s merchandise team evolved. “Our customers started telling us they wanted variety and innovation, not only me-too products,” says Jackie Li, SVP of private brands and global sourcing at Goodlettsville, Tenn.-based Dollar General. “We then started developing products that were equal to or better than the national brands.” New product development has also been key to private label growth at Dollar Tree-owned Family Dollar. At the end of 2023, Rick Dreiling, chairman and CEO Of Chesapeake, Va.-based Dollar Tree, reported that private label penetration rates at Family Dollar had reached 14% and that the retailer was on target to hit its penetration rate goal of 20% by 2026. This was despite the fact that Family Dollar was in the midst of shrinking its store count by 600 by the midway point of 2024. “We believe that as the customer is looking for greater value, they have more options within our private brands,” said Dollar Tree CFO Jeff Davis during the company’s fourth-quarter conference call. “It’s an opportunity for us to improve our margins. And, to the extent that there is sort of price deflation, there’s an opportunity to provide even more value as we think about how we sort that particular product line.” The shedding of stores by Family Dollar, along with the closure of 99 Cents Only, which in April revealed that it was going out of business and closing its 371 stores across four states, has done little to temper the overall positive outlook that retail analysts have regarding the distribution channel. (Since the writing of this story, Dollar Tree announced it was reviewing strategic alternatives for Family Dollar. No additional information about the future of Family Dollar has been revealed as of press time.) “We do not view the planned closure of 99 Cents Only and a tranche of stores by Family Dollar as reflective of the overall state of the dollar and discount store sector,” notes Sujeet Naik, an analyst with New York-based Coresight Research. “We remain bullish on the market-share prospects for high-quality and/or well-positioned discount formats over the longer term.” He observes that the start of the 2020s was characterized by high inflation and macroeconomic uncertainty, which prompted a shift in consumer shopping habits and made consumers more value-oriented. As a result, Naik expects the movement toward greater frugality to be a structural trend that will outlast short-term economic disruptions and boost discount sales through the rest of this decade. While an economy that has a larger number of price-sensitive consumers would seem to favor dollar stores and the value proposition they offer, there are challenges facing these retailers. One such challenge is keeping store shelves stocked with items that are priced at or near the magic $1 threshold. Not meeting or coming close to this key price point could make these retailers less attractive to shoppers looking for products at this price level. Competition from the likes of Walmart and ALDI is another hurdle facing dollar store retailers. Bentonville, Ark.-based Walmart’s private label assortment is growing with the launch of its bettergoods assortment, which offers 300 items across a host of categories, with most priced at less than $5. ALDI will also be a bigger presence going forward as the Batavia, Ill.-based discount grocer moves forward with plans to open 800 stores in the United States by 2028. “Walmart and ALDI have gotten much better at offering lower prices on a variety of goods,” says Naik. “This makes dollar stores have to work harder to stand out.” Dollar General’s Li notes that ever-changing economic conditions have created growth opportunities for the value retailer and store brands overall. As a result, the continued development of private label assortments could be the key to dollar stores’ efforts to separate themselves from other retailers while also offering shoppers high-value products. “One of the many ways Dollar General differentiates itself is our focus on value,” he asserts. “We want to make our customers happy by meeting and exceeding expectations. We made significant enhancements to our private brands in 2023, and we know how important these value offerings are for our customers. We believe these products will further differentiate Dollar General in the marketplace as we look to provide quality products that are customer-centric, on-trend, national-brand or better, and stretch our shoppers’ dollars even further.” The ongoing effort to expand its private label assortment in recent years is highlighted by the launch of the reformulated and rebranded Nature’s Menu assortment of dog and cat food in 2022. Responding to consumers seeking affordable, high-quality pet food, the line was revamped to include dry-food options made with natural ingredients such as real beef, lamb, and cage-free chicken. The wet-food assortment was updated with added vitamins and minerals, and made with real meat, poultry, or fish. Also in 2022, the retailer debuted its OhGood! private label nutritional supplement line. The assortment of gummy vitamins is non-GMO and gluten-free, with select vegetarian or vegan options. Items in the line have retail prices between $5 and $7. A year later, Dollar General launched the aforementioned Clover Valley private label assortment of more than 100 new items, including sauces, condiments, entrées, sides, and snacks. With continued expansion of private label assortments a focus for dollar stores, industry experts contend that there’s more these retailers can do to expand their respective customer bases. Grocery is one area of potential growth. “Food and grocery essentials generally carry lower margins but are fast-moving goods and have higher sales densities than general merchandise products,” says Coresight’s Naik. “The increase in shopping frequency will provide the opportunity to drive incremental sales across all categories, including higher-margin discretionary products.” Read more: Dollar Stores Private Label Expansion | Store Brands

Discount Retail Chain Lidl UK has been quite a step change in the past nine months, having been consecutively named the fastest growing bricks-and-mortar supermarket and hitting a record market share of 8.1%. It is fast catching up to Morrisons’ 8.7% share and is not too far behind rival discounter Aldi at 10%. With plans to open hundreds of new stores this year, Lidl’s growth journey looks set to continue. But why is Lidl performing so well right now, can its growth continue, and can it ever overtake its closest competitors? Why is Lidl performing so well right now? Lidl has been on top form for some time now. It was the only grocer to win spend from all other competitors over the Christmas period and continues to be the fastest growing bricks-and-mortar supermarket, a title it has held for nine consecutive months. Senior retail adviser and consultant Matthew Nobbs, who spent 22 years in leadership roles at Lidl, highlights a few key reasons behind Lidl’s growth, which he says when combined, “add up to something pretty special”. Having previously spent six years as Lidl’s UK supply chain director, among other senior roles, Nobbs notes that this is one area that has been a “massive focus” for the discounter. “Lidl is good with its supply chain from making sure that products are available on shelf, to having its own warehouse network and its own logistics network across Europe.” He notes the German retailer’s ‘Britishness’ has also helped it to slowly solidify its name in the UK market. “This started in 2015 when Ronny Gottschlich was the CEO, driving the fact that its a very British supermarket. British meat, poultry, fruit and veg contracts that are not into the weeks or months anymore, but many, many years. The marketing of it as well, they’re more British than pretty much any other retailer. They’re shouting it from the treetops.” Nobbs adds that more recently, it has been Lidl’s loyalty programme that has helped “drive basket spend and get consumers to switch from competitors”. “The loyalty programme has been a real game changer. If you think that these products are already at a very low price, because it’s predominantly own-label, and they’re being discounted further, it’s fantastic pricing. It’s a very aggressive strategy in terms of whether it’s wine, baked goods or dairy, whatever those categories are, it’s been highly successful,” he explains. Earlier this month, Lidl revamped its loyalty scheme with new Lidl Plus Offers which provide members with weekly discounts on a range of products alongside the existing ‘Lidl Plus For You’ Coupons. A Lidl spokesperson tells Grocery Gazette that the move looks to “make it even easier for customers to save on their shopping”. Kantar strategic insights director Tom Steel agrees that its loyalty scheme is driving growth. He explains that “everything there is designed to incentivise people to do more shopping with them – it’s definitely all about frequency at the moment”. Savvy Marketing chief executive Catherine Shuttleworth agrees that its the gamification of its loyalty scheme that makes it so appealing. “It’s quite fun with weekly offers and prizes – there’s reasons to go to the store,” she says. On the flip side, Aldi may not be performing so well due to the fact it doesn’t have a loyalty scheme offering, Steel contends. He explains: “When we look at switching, we’re seeing Lidl doing really well, gaining across the board. Whereas for Aldi, it’s struggling a little bit more. It’s losing some spend to Lidl, but also to Tesco and Sainsbury’s.” Shuttleworth says that Lidl still offers “something different to anything else in the market”. On the other hand, she believes Aldi “has become a bit more like the main retailers, full of floor standing display units, branded items, more SKUs in the shops and some of the stores are starting to look a bit tired.” Lidl looks “newer and a bit more contemporary”, in comparison she says, adding that “younger family shoppers probably really like Lidl because it’s easy to get around and it looks good.” In terms of the store experience at Lidl, one of its key features is its bakery, which was named the most popular supermarket bakery in April by Kantar. The grocer also overtook Tesco for having the largest share of the in-store bakery market in the first quarter of the year, at 18.2% for the 12 weeks to 17 March 2024, just above Tesco which holds 18%. Can Lidl continue to grow? Steel believes that Lidl will continue to “perform really well” and will be “towards the top” of its growth list, however he warns this may only be the case until August or September. “Essentially, we started referring to them as the fastest growing retailer around September last year and when they reach that point this year, it’s going to be harder to carry on growing that way,” he says. He notes that in order for Lidl to continue growing, “a lot will depend on store openings”. If Lidl keeps pace, opening stores ahead of competitors then it can continue performing at its current level, Steel asserts. Last month, Lidl unveiled plans to open hundreds of new stores across the country this year in areas including Bristol, Birmingham and Berwick in Scotland, as well as new London locations including in Wandsworth, Fulham, Hoxton and Canning Town. Lidl GB chief development officer Richard Taylor says: “We’re planning to open hundreds of new Lidl stores but ultimately see no ceiling on our ambition or growth potential. “This is why we’re continuing to invest in new locations whilst exploring innovative routes to expansion. As we look ahead, we’re excited to welcome even more new shoppers to our existing stores, as well as those we’re planning to open across the country in the coming months and years.” Nobbs says that when these new stores start coming into fruition in 12 to 18 months, “it’s going to be all guns blazing”. “When you’ve got almost 1,000 stores, 8.1% market share and you’re growing at a rate of knots when you’re not opening many stores by getting customers to switch – imagine what’s going to happen when you start opening that tap of new real estate again.” Can Lidl overtake its closest rivals Morrisons and Aldi? While overtaking Aldi, which currently holds 10% of the market, is a slightly trickier job, Steel says that in the short-term, Morrisons, which currently sits at 8.7%, is a different story. He says it is the “closest gap” between the two that Kantar has ever seen and predicts Lidl will leapfrog the Bradford-based supermarket within the next six to 12 months. Shuttleworth agrees that Lidl will have overtaken Morrisons by the end of the year “no questions about it”. “Morrisons is starting to get its operational business back together, but it’s going to take a long time to bring the customers back. While the new management team is doing a good job, I don’t think that’s necessarily executed in the shop. When you try to sort out Morrisons, you’re turning round an oil tanker, whereas Lidl is already on a trajectory of growth,” she explains. Nobbs also believes this Lidl will overtake Morrisons through “a combination of customer switching and new store openings,” however predicts a slightly longer timeframe at 18 months. He says: “Ultimately, what you don’t want to do is upset your existing customers by breaking availability, having regional distribution centres blowing your budget, and Lidl will want to make some money as well. So I think it’s going to take about 18 months, but for sure they will overtake Morrisons in that time.” In terms of catching up to Aldi, while Steel argues that “it’s not impossible,” he adds: “I think that would be quite some time away and I think Aldi would be continuing to open new stores.” He believes that Aldi’s market share will “remain fairly consistent”. “It has got quite a big base and I think it will want to try and remain as competitive as possible. I don’t see it rapidly losing a lot of share. Its always been a business that’s quite ahead of the times and I’d expect it to be trying to respond and at least maintain its share as much as possible,” he explains. Nobbs agrees that “its not going to happen overnight,” however as an international retailer, he questions where Aldi will put its money in the year ahead. “It’s on a massive growth drive in the States at the moment. It could be that Aldi thinks its money is better off spending, expanding and turbo charging within the USA and just holding its position in the UK.” While it might take Lidl slightly longer to reach Aldi’s market share, the discounter is on fire right now. With plans to expand to much more of the UK alongside a compelling in-store and loyalty offer, the next year could see it stealing more share from not just Aldi but the rest of the grocery market. Read more: As Lidl hits record market share, can it ever overtake Aldi? (grocerygazette.co.uk) #smartdiscount #lidl #expansion #growth #marketdevelopment #marketshare #uk #aldi #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Rema1000 Norway has introduced an innovative automated fruit and vegetable recognition solution. This new technology, which facilitates a more agile and efficient shopping experience for consumers, uses machine vision cameras and AI systems to identify products sold in bulk. The modern scales implemented in some Rema 1000 stores are not simply a weighing device; it are scales capable of recognising different types of fruit and vegetables placed on them. Using a camera located below the touchscreen, the system analysis the product image, allowing the AI software to quickly identify the item in question. Customers then confirm their selection on the screen, after which a barcode is printed to be attached to the product, facilitating a smoother checkout process. This advancement is not exclusive to those who opt for automatic scanning and payment, but also benefits customers who prefer traditional payment methods, allowing them to pre-scan their purchases to streamline the checkout process. What's remarkable about this technology is its ability to recognize products even through clear plastic bags, showcasing the sophistication and sensitivity of the machine vision and AI involved. Behind this implementation is collaboration with Edgify, a company specializing in artificial intelligence solutions, and the support of StrongPoint, a key technology partner, along with hardware provided by Digi. To date, the system has been rolled out to eight stores in Norway, with plans to expand its reach in the near future. The Rema1000 initiative not only represents a significant step towards modernizing the traditional purchasing process, but also reflects an ongoing commitment to innovation and improving the customer experience. Likewise, this technology is very useful to prevent theft and fraud. In Spain, retailers such as Mercadona and others in the region prefer to continue using weighing scales at assisted checkouts. Read more: AI-powered self-service scales, the latest from Norwegian retailer Rema 1000 (foodretail.es) #smartdiscount #rema1000 #norway #ai #selfscan #sco #mercadona #strongpoint #Edgify #digi #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl Greece will now issue only electronic invoices to users of the Lidl Plus application, while paper invoices will continue to be issued to customers who do not use the loyalty program. In the next two years, Greece could become the first country of the company to allow customers to shop exclusively at self-service checkouts. Customers will make their purchases with the assistance of employees, but also with the possibility of paying for their purchases in cash. If the project proves successful, the company plans to roll it out in other markets. According to reports from the international press, technology company Itab plans to deliver 7,200 self-checkouts in 13 countries to the German retailer by the end of 2025. Lidl recently celebrated 25 years of successful business in Greece. The German chain has invested €1.4 billion so far and currently operates 230 stores. Lidl has announced new stores and the construction of a new logistics center. Read more: Lidl izbacuje papirne račune, u naredne dve godine kupovina samo na samouslužnim kasama - Retail Serbia #smartdiscount #paperless #app #lidlapp #sco #selfscan #greece #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

The store layouts of the leading discounter's ALDI SÜD and Lidl in Germany were never identical, but they were often similar. The latest German store generation remodelling from Lidl differs significantly from Aldi Süd. The two layout overviews are from Aldi Süd in Neuss (left) and Lidl in Dülmen (right). Both have been newly opened/rebuilt in recent months. Courtesy: Prof. Dr. Stephan Rüschen, #dhbwheilbronn #smartdiscount #germany #lidl #aldi #storelayout #categorymanagement #facelift #remodelling #store #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

The companies of the Schwarz Group can look back on a successful financial year and generated sales of 167.2 billion euros, which represents an increase in sales of 8.5 percent. The balance sheet date was February 29, 2024. The aggregated total turnover includes all sales under commercial law. The number of stores rose by around 200 to around 13,900. What is special about this is that the company had managed to cope with the growth in sales with the same number of employees (575,000) due to higher prices due to inflation, but also improved processes. In the past year, Schwarz was also able to maintain the large gap to Europe's number two Rewe, which achieved sales of 92.3 billion euros (plus 8.9 percent). The British retail group Tesco achieved a slight increase of 5 percent on sales of around 80 billion euros. There are currently no exact sales figures from Aldi. The last figures from 2022 amounted to a total of approx. 76 billion euros in Europe. Focus on low prices pays off The fact is that consumers are still very price-sensitive and will probably remain so for the time being. Despite increased purchase prices, especially for merchandise, raw materials, energy and transport, as well as interest rate hikes, the Schwarz Group was able to cushion some of the impact through its efficient process and cost management. Thus, the customers of Kaufland and Lidl were able to rely on the usual attractive prices despite the difficult situation. The discounter Lidl achieved a store turnover of 125.5 billion euros, an increase of 9.4 percent (plus of almost 11 billion euros) compared to the previous year. Kaufland increased sales by 7.8 percent to 34.2 billion euros. Total online sales amounted to 1.7 billion euros (minus 9.4 percent), which was on a par with the 2021 financial year. According to the latest market developments, this decline was to be expected for online shops in Germany, as sales shot up due to the Corona pandemic. Expansion with prudence and efficiency In the last fiscal year, Schwarz was able to open 200 new stores of Kaufland and Lidl. Even though the target number was once 400, the company was still able to achieve an impressive result. Investments amounted to around 8 billion euros in the 2023 financial year. The focus here was in particular on the modernization and expansion of stores, new warehouse locations and the safeguarding of supply chains. Of the total of 13,900 stores, 12,200 now run under the Lidl logo. Kaufland was able to achieve sales of 34.2 billion euros in 2023, an increase of 7.8 percent. Here, a large part of the good result could be achieved by taking over further former Real space. In Germany alone, 21 billion euros were achieved in the large-scale sector. Food production in full focus What also benefited consumers is that the Schwarz Group is increasingly acting as a food producer. The manufacturing companies of the Schwarz Group were able to deliver goods worth around 4.2 billion euros, mostly to Lidl and Kaufland. This corresponds to a 26 percent increase in sales compared to the previous year. This result is mainly due to the growth of Schwarz Produktion and the expansion to include the coffee, pasta and paper product groups. The beverage plant in Derby (Great Britain) was also the first Schwarz production site outside the domestic market to successfully start operations. The Schwarz Digits division, which was newly founded in the 2023 financial year, was also able to contribute to the good result with sales of 1.9 billion euros, so that the course has also been set for a further positive future in the digital sector. Read more: Schwarz-Gruppe macht weiter Dampf, Umsatz + 8,5 %! - Supermarkt Inside (supermarkt-inside.de) #smartdiscount #schwarz #lidl #kaufland #produktion #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Lidl USA is making key merchandising changes and its chief customer officer sees “untapped potential.” But analysts say the discounter still faces a challenging road ahead. When Lidl prepared to enter the grocery industry in the United States back in 2015, the German retail powerhouse seemed to have everything going for it. Renowned across Europe for the potent mix of low prices and high-quality goods that defines its thousands of colourful stores, Lidl arrived stateside with deep pockets, a highly developed private label strategy and a disciplined focus on efficiently running a complex business in a highly competitive environment. But instead of steadily growing its U.S. footprint as it had originally intended, Lidl US has moved ahead in fits and starts, prompting questions about why its value-focused business model has trouble gaining traction on American soil. Lidl’s U.S. store network so far comprises only about 170 stores in nine states and Washington, D.C. Meanwhile, German archival Aldi, which entered the U.S. in 1976, has accelerated its growth and now has almost 2,400 stores stateside. While Aldi has continued to ramp up its growth, Lidl US has laid off hundreds of corporate workers during the past two years and closed a number of stores. “They’ve given up so much opportunity over the past few years between the pandemic, people being out of work, looking for value” and dealing with inflation, Michael Infranco, assistant vice president of retail intelligence provider RetailStat, said about Lidl’s journey in the U.S. “These guys seem to have missed that boat, so they’re going to have to hitch their ride on another one.” That time could be now, with throngs of shoppers across income levels flocking to discounters and mass retailers in search of more affordable grocery options. Lidl US has new changes underway, including a broad update of its assortment, as it looks to adapt its model to better suit the U.S. consumer, Chief Customer Officer Frank Kerr said. Focusing on ‘untapped potential’ After moving through several CEOs during its first years, Lidl US last summer appointed its first American CEO, Joel Rampoldt, a former consultant who is serving as the company’s fifth chief executive. In March, the company brought on a team of four new senior executives, including a new chief commercial officer and Kerr, its first chief customer officer. Kerr acknowledged in an interview that Lidl is facing a considerable learning curve as it adapts to the U.S. market and said the company is closely examining its next moves in the U.S., a region that “is really untapped potential for us.” Lidl sees itself as able to simultaneously meet the needs of shoppers looking for a limited assortment discounter or a traditional supermarket, Kerr said. p “We really see the opportunity to disrupt any market that we go in because quite frankly, we can appeal to a various amount of demographics and customers and quite frankly … really deliver on the value proposition, despite where their normal shop may be prior to us entering those markets,” Kerr said. Kerr was a member of the team of executives that founded Lidl’s U.S. unit. He spent time working for the grocer in Germany and the U.K. ahead of the debut of its first U.S. stores in 2017. Kerr then left Lidl for Save A Lot in 2018, where he served as a regional director and later vice president of retail operations and wholesale sales before moving to Lidl International in 2022. Lidl is developing a broad update to its assortment as it works to connect more deeply with shoppers in the U.S. Changes the company is working on include the introduction of freshly baked bagels to its signature in-store bakeries as well as a meat department overhaul linked to Independence Day. Kerr said Lidl takes particular pride in its low-cost baked goods, pointing to its 79-cent baked-in-store croissants as an example of how it hopes to strengthen its relationships with U.S. shoppers. Lidl’s dual focus on low prices and fresh food is a clear differentiator as it tries to build a stronger presence in the U.S., particularly among discounters, which tend not to put as much emphasis on fresh merchandise, said John Clear, senior director in the consumer and retail group at consulting firm Alvarez & Marsal and a former Lidl executive. Read more: Is Lidl poised to finally turn the corner in the US? | Grocery Dive #smartdiscount #lidl #growth #expansion #profitability #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi Nord recorded a 7.5% increase in sales last year, thanks to its international expansion. The German discounter does not have large profits, but this does not prevent the retailer from focusing on prices. Aldi will pursue a more aggressive pricing policy. After years of reorganization and modernization, which have put promotions on the back burner, the discounter finally wants to be a discount store not only in name. Now investments are starting to pay off, and profits in 2023 have increased significantly. Aldi's exit from Denmark is a good decision In all countries where Aldi operates, EBIT was positive last year, although this is partly due to the fact that Aldi also owns a number of its properties. In 2023, the chain put an end to its loss-making operations in Denmark. In France, the retailer is still fighting for share, and in its home market of Germany, it is still feeling the investment costs incurred. Focus on foreign markets Aldi Nord's net sales reached €29 billion, an increase of 7.5 percent. In addition to its strong expansion, the discounter opened almost 100 supermarkets outside Germany, the increase is of course due to high inflation, but according to GfK, Aldi still performed better than the market. The company also increased its market share in all countries. The German domestic market generates more than €6.2 million in net sales per store for Aldi, while the figure remains lower abroad, according to retaildetail.eu. By 2024, Aldi Nord plans to open 200 new supermarkets, including 60 in Poland. However, the new locations will be smaller and cheaper to build: instead of 1,100-1,200 sqm. Aldi Nord is now planning 1,000 sqm. of store size. The discounter is also reorganizing its offer to focus even more on private labels and reduce the assortment to about 1,800 items. Aldi is strongly committed to its own private label brand As from July 1, Alexander Lauer will take over the position of Purchasing Director at Aldi Nord. Lauer worked for the rival Lidl until 2020, but will now take over from Jürgen Schwall. The discount maker wants up to 80% of its own brand assortment to go to foreign markets. Today, only half of all products come from the headquarters, from the headquarters in Essen. Aldi also focuses on the promotion of products under its own private label brand. In Poland, the chain launched the Great ALDI Product Test project in May. As part of the campaign, customers can become testers assessing the quality of private label products. The ambassador of this event is Michał Korkosz author of cookbooks and the blog Rozkoszny. Read more: Aldi: Higher sales, lower prices, smaller stores (dlahandlu.pl) #smartdiscount #poland #germany #france #aldinord #growth #sales #storesize #privatelabel #expansion #influencer #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain Aldi UK has been named the cheapest supermarket for the fifth consecutive month, while Waitrose yet again is the most expensive. According to the latest data from consumer watchdog Which?: Aldi cost £121.56 for a basket of 69 items in May, £36.57 less expensive than Waitrose at £158.13. The second cheapest grocer was rival discounter Lidl, costing just £3.32 more than Aldi, while Asda and Tesco followed at £137.91 and £138.84, respectively. Sainsbury’s was found to be slightly pricier at £142.33, followed by Morrisons at £144.36 and Ocado at £147.64. For a larger selection of 177 groceries, excluding Aldi and Lidl, Asda was the cheapest supermarket at £461.98, while Morrisons came in second place followed by Tesco and Ocado. Sainsbury’s came in at just under the £500 mark at £499.12, while Waitrose was again found to be the most expensive at £505.36. It comes as Aldi has lowered the prices of over 45 of its fruit and vegetable products, as part of its latest series of price reductions. Customers at the discounter can find lower prices on produce including berries, oranges, tomatoes and its fresh salad, as well as avocado and peppers which have been slashed by an average of 11%. Read more: Aldi retains crown as UK's cheapest supermarket (grocerygazette.co.uk)