Aldi Nord and Aldi Süd have announced they will permanently lower prices for whole beans and ground coffee products sold under their own private label brands. Ground coffee and whole beans from Aldi's own brands Moreno, Markus Kaffee, Amaroy and Tizio are now permanently reduced in price by up to 20% in the 4,000 stores of both discounters in Germany. These coffee products are to become cheaper at Aldi Nord: - Markus Kaffee (Gold, mild, decaffeinated) from 4,99 to 3,99 Euro - Markus Kaffee Classic from 3,99 to 3,49 Euro - Markus Kaffee Exklusiv from 5,39 to 4,99 Euro - Markus Kaffee (Fairtrade organic coffee ground) from 6,69 to 5,99 Euro - Moreno Caffé (crema, natural mild, espresso, whole bean )from 9,99 to 8,99 Euro - Moreno Espresso Classico (1 kilogram) from 7,99 to 6,99 Euro - Moreno (Bio Caffe Crema, Bio Espresso Fairtrade) from 12,99 to 10,99 Euro - Gustoso whole bean from 7,99 to 6,99 Euro Amazon rainforest project In 2021, Aldi Nord expanded its coffee range to include a sustainable type of coffee with 'Sweet Brazil' coffee to its private-label brand Gourmet Finest Cuisine. The discounter said the sales of the product promotes sustainable coffee cultivation in the Amazon region. The project, organised by IDESAM organisation, sends proceeds from the sales of the product directly into the 'Apuí Agroforestry Coffee Project' in the Amazon rainforest. Infrastructure projects The reforestation of the Apuí region, which is repeatedly affected by forest fires, supports local coffee cultivation, and promotes sustainable development in the region. The focus of the project is, among other things, the afforestation of damaged areas and the restoration of a healthy ecosystem. Furthermore, the discounter says local coffee farmers are supported by infrastructure projects in order to improve the coffee quality in a targeted manner and thus facilitate their market access. "We are pleased that we are offering our customers a product with our 'Sweet Brazil' coffee that they can purchase to make a simple contribution to climate protection," said Tobias Heinbockel, managing director category management at Aldi Nord at the time. Sustainability initiatives Last July, Aldi Nord announced new climate goals and shared a detailed overview of its sustainability initiatives in its 2021 Sustainability Report. The retailer said it will focus mainly on the topic of climate protection. In Germany, Aldi Nord now also obtains 100% of its electricity from renewable energies. See here for more: Aldi To Lower Coffee Prices For Own-Brand Products | ESM Magazine #smartdiscount #aldi #markus #coffee #germany #pricereduction #drc #discount #retail #discountretail #discountretailconsulting #privatelabel #ownbrands

Discount Retail Chain ALDI Australia's (German family owned) coffee has been lauded Overall Large Chain Champion in Australia's largest coffee roasting competition 'The Golden Bean'. The German retailer has won the award for the third year in a row for their Lazzio Coffee range in spite of over 1,100 entries being submitted to the 2021 competition. Lazzio Coffee won six medals across multiple categories including filter coffee, espresso, and milk-based espresso. ALDI has collaborated with Black Bag Roasters since 2014 and have collected a myriad of awards for their coffee since, including the people's choice for Best Coffee in the 2021 Canstar Blue Awards. ALDI and the Victorian-based roasters have created a wide and impressive range of blends 'Our partners at Black Bag Roasters work directly with the farmers to grow the highest quality coffee,' said ALDI Australia Coffee Buying Director Varun Raheja. ALDI and the Victorian-based roasters have created a wide and impressive range of blends. Their selection includes Lazzio Medium and Dark Coffee Beans, Organic Ground Coffee, and as well as a range of Single Origin Beans from Brazil, Colombia, Honduras, and Peru available sporadically throughout the year. See here for more: https://www-dailymail-co-uk.cdn.ampproject.org/c/s/www.dailymail.co.uk/femail/article-10319637/amp/Aldi-coffee-beaten-competitors-roasting-competition-year-row.html

Discount Retail Chain Biedronka's Chief Commercial Officer Grzegorz Pytko said in a recent interview with rp.pl '"The first poster with the podium and price baskets was shown by Biedronka's more expensive retail competition. We have 5 million customers a day and their number is growing." See below the compete interview. Who started the price war? In the current situation, we tend to avoid this terminology and try to choose our words more carefully. The war is a tragic situation across our eastern border, and what we are dealing with in Poland is fierce competition for customers in a difficult market. It's more intense than it was before, but there are more reasons for this spiral. These activities include promotional and marketing mechanisms, but in the end, it is the consumer who benefits. In the podcast, the CEO of Lidl emphasizes the topic of the same prices in all stores, and in Biedronka the prices are differentiated. Do you benefit from this conflict? We have more customers, but we don't know if this is the result of intense competition or if other factors have an impact on it. We can see that we are also growing in terms of market share, despite building a high base in 2023. We are already at the level of approx. 30 %, and the promise we make as a market leader must be kept. The most important of them are: competitiveness and the lowest prices on the market. Another new retail chain has joined the price war. Gives discounts on Lidl and Biedronka cards. Delikatesy Centrum stores want to prove that bargains can be found not only in discount chains. You can buy cheaper with the Biedronka or Lidl+ card, on the first day over 100,000 customers took advantage of the promotion. Discounters were already growing as fastest, and now the message is getting through to consumers that a discount chain is always the cheapest. Discounters have also gained before, so what is happening now is not unusual. We have always put the slogan "low prices every day" in the first place in communication with the customer. Other aspects related to the purchasing process, such as the breadth of the assortment or the ease of shopping, were a consequence of this and appeared later. Over the years, the competition has looked at slightly different attributes, the price was on the sidelines, attention was paid to the appearance of the stores, the breadth of the offer, etc. In recent years, this has changed, through the pandemic, the war in Ukraine, to high inflation. The customer has become much more price-sensitive, which has been noticed by the competition. Taking care of the customer experience did not have the same effect in attracting their attention as prices. Biedronka has been and still is consistent with a foundation in the form of low prices. Competition, broadly understood, has decided to change in this direction and convince customers that attention to prices is also important on their side. But you can't do it with communication alone, you have to take care of it for years and convince buyers to do it every day. I do not believe that a customer looking at a few fragmentary price baskets will be able to change their opinion about who is the cheapest. Shopping carts are a slice of reality, what matters is how much the customer will ultimately pay at the checkout for their regular purchases. Besides, no one buys such sets as these baskets present. Every purchase is different, in order to evaluate it, it is not enough to analyze only 15 or 20 selected products. It is a matter of the entire purchasing process, our analyses taking into account the entire assortment and the promotions we offer, show that we are the undisputed price leader on the Polish market. Where are the hypermarkets? They have the widest offer and it would probably be possible to do the cheapest shopping in them. This channel has been losing market share for years. This trend is unstoppable, and many significant players have withdrawn from Polish. I do not agree with the statement that you can do the cheapest shopping in hypermarkets. The most comprehensive for sure – they are the clear leader when it comes to the breadth of the assortment. Our data shows that Biedronka's offer is the cheapest regardless of who we compare ourselves to. Are private labels still gaining gain? Private labels are an extremely important element of our offer. Many of them have market shares that threaten the leaders in their respective categories, or have even already beaten them. A frequently cited example is Dada, which, being its own private label brand, is the leader on the Polish market. Recent years have consolidated changes in customs. Consumers have become even more price-sensitive and are redirecting interest to products on sale and to cheaper alternatives to what they typically buy. That is, private labels, the quality of which must be at least equal to or better than that of the brand leader. If, at the same time, the price is lower, then when the customer tries them, they come back to such purchases. The share of our own private label brand in Biedronka's sales exceeds 40%, and we are also developing their offer by creating a special team dedicated to them. In our stores, up to 94% of the offer comes from Polish companies, in contrast to the offer of our competitors. The truth is that our partners in the development of private label products are usually local Polish companies, which can therefore compete with international corporations. If the restrictions were to take place, jobs would be at risk on the producers' side. Will the market bounce back this year after a quantitative decline in sales in 2023? This is quite an unusual situation in our market. I can't predict what will happen. On the other hand, we are not experiencing a downturn in the economy last year or this year. We are increasing the volume of products sold in most categories, so if I were to measure the economic situation by our results, I do not see any deterioration in it. A certain slowdown in the market can be seen, but there are many factors that should lead to an improvement in the economic situation, such as an increase in the minimum wage or an increase in the child benefit to PLN 800. This should create the conditions for increased consumption. Most categories with a positive effect? In which was it negative? First of all, let's pay attention to the prices. Some categories are already deflationary, as a result of the events of 2023 and 2024. We have a real decrease in sales prices, which is also seen by customers, sometimes even a significant increase in the volume of sales is not able to give an increase in its value. Categories with deflation are mainly fresh products, such as fruits, vegetables, meat, dairy products, but also oils and loose products. Here, the competition between chains, but also between providers, is the greatest. Market data indicates that there are fewer promotions. Is there an end in sight for Biedronka as well? Our data shows that the share of sales in promotions is increasing. In Poland, it accounts for 40-45% of total sales. We have up to 900 products on sales promotion every day. When we compare it with the competition, the proportions are completely different, the share of promotional sales is lower. On the entire market, it is about 30 per cent. If the customer didn't see it and didn't appreciate it, then the traffic in our stores wouldn't increase so much. We already have 5 million customers a day and this number is growing despite market turmoil and changes in behavior. What has happened to the citizens of Ukraine is also important, at its peak, there were several million of them in Poland due to the war, but that is a thing of the past. Some of them returned to Poland, some went further to the West. Today, their number is much smaller, so is the overall customer base. And we're still growing. The topic of opening Sundays is coming back, is it an important topic for you? Has the customer switched and no longer expects shopping on Sunday? The ban on Sunday opening was a new reality a few years ago and it took a lot of effort to adapt to it. We have adapted to the new law, and the Polish client has undoubtedly become accustomed to the new conditions. Looking at shopping, you can see that what was bought on Sundays is now spread over other days and the value of spending has not decreased, although its structure has changed. We try not to dwell on things that don't depend on us. For us, it is not only about the opening of retail stores on Sundays, but also about their preparations for work on Monday. At the beginning of a new week, the customer expects a fully prepared store from the very morning, which is not always possible after the weekend shopping peak, and without the possibility of working on Sundays. Opening Sundays generate lower turnover than before. They are an anomaly, consumers forget about them. This shows that shopping habits have changed a lot. We will adjust to the decision if it arises. And the internet? As a significant channel it is, the share of e-commerce in the food market is small. Technology and the Internet are the future of the market, which does not change the fact that the basis of our business is over 3,500 and brick-and-mortar stores, and soon also new outlets in Slovakia. However, we are also developing digital channels. In 2020, we started with online delivery in partnership with Glovo. At the moment, we have it in about 70 cities. Two years later, we launched a quick-commerce project. At the moment, the service operates in six cities, as part of the assortment sent from specialized mini-warehouses with guaranteed delivery even in a dozen or so minutes. Although there were many international operators on the market who decided to withdraw from it, we prove that success is possible, the key is the price. We will be launching new locations, consumers, especially in large cities, expect such services. Biedronka Home operates with home accessories, and we are also running a pilot project for an e-grocery store zakupy.biedronka.pl. Read more: Grzegorz Pytko, Biedronka: It was not us who started a fierce fight for price reductions - rp.pl #smartdiscount #poland #biedronka #lidl #competition #price #inflation #deflation #pricedifferentiation #ecommerce #growth #expansion #communication #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Schwarz Produktion (owner of Discount Retail Chain Lidl) started building its own brand-new coffee roastery production plant in Rheine (Germany). The plant will be built on a 174,000m2 land plot next to the highway A30. The coffee supply value chain integration is in line with Aldi's coffee category approach, as Aldi is also roasting its Private Label coffee and bending its Private Label tea in its own German factories. At the end of 2021, yearly over 50,000 tons of filter coffee and whole beans are to be roasted in it for its Private Label coffee category at its Lidl and Kaufland sales channel. With the entry into the new segment, Schwarz continuous its long-term strategic development in order to supply consumers with food of the highest quality at a best price. Next to coffee, Schwarz Produktion is also producing its own Private Label bake-off bread, chocolate, ice-cream, mineral water and soft drinks in German factories. Jörg Aldenkott, CEO of Schwarz Produktion, explains: "The new coffee roastery is evidence of our successful growth and diversification strategy, which we want to maintain together with our partners in the Schwarz Group in the years to come."

Schwarz Produktion, owned by Lidl's mother company Schwarz Group, wants to acquire the ARTiBack GmbH from Halle in Germany. At the moment the acquisition of ARTiBack is subject to approval by the antitrust authorities. Schwarz wants acquiring the large baker ARTiBack GmbH based in Saxony-Anhalt. "ARTiBack is an excellent addition to our existing bakery production, which we have built up very successfully over the past ten years. On this basis, we will continue the success story of ARTiBack in the long term under the umbrella of Schwarz Production," explains Jörg Aldenkott, CEO of Schwarz Production. The production location in Halle is ultra-modern. ARTiBack has been producing freshly baked bread specialties and rolls based on artisan baking traditions since 2018. Together with Bonback in Übach-Palenberg, we want to make the high quality and variety of baked goods available to everyone and further develop the new location.

Discount Retail Chain Penny (owned by the German REWE Group) accelerates its sustainability activities and avoids waste by switching to the IFCO Banana Lift Lock solution. With our reusable packaging containers (RPCs), the international retailer benefits from lower carbon emissions, perfectly ripened bananas and a more efficient banana supply chain Replacing disposable packaging for the environment Whether it's through low-carbon supply chains, eco-friendly product lines, energy-efficient stores or the use of sustainable packaging, Penny is a driving force in the ongoing transformation of the retail industry. "Just because something has been done the same way for decades doesn't mean it can't be improved," says Nico Wittlich, Division Manager Ultra Fresh - Fruit, Vegetables, Flowers, Plants at Penny, the international supermarket chain owned by the REWE Group, one of the leading European retail companies. "It is our responsibility to stand up and change the status quo when there are sustainable and competitive alternatives." When it comes to bananas, that alternative is the Banana Lift Lock, our innovative reusable packaging container (RPC) specifically designed to meet the needs of the banana supply chain. Since September 2022, all BioHelden bananas displayed in Penny stores in Germany are no longer sent in disposable packaging. Now the organic bananas begin and end their international journey safely in the Banana Lift Lock. Other banana categories are expected to follow in the future. In fact, bananas aren't the only fresh produce shipped in our RPCs. Since 2015, our Black-Lift-Lock has been transporting fresh fruit and vegetables throughout the PENNY store network directly from the farms and suppliers to the points of sale, thereby contributing to the retailer's sustainability goals. Saving CO2, energy and water avoids waste Not one, but 2,242. That's how many trips to the moon it would take to achieve the CO2e savings that Penny achieves by switching from single-use packaging to our Banana Lift Lock. Looked at more closely, this corresponds to 35,743 car journeys around the world. In concrete figures, replacing single-use containers with our sustainable solution for bananas means a saving of 154,697 MT CO2e. These figures are based on the import volume of bananas from South America to Europe and were calculated using well-established tools. That's an impressive result. "This is a win for the environment, our customers and our operations," says Wittlich. "By switching to reusable packaging, significantly less carbon dioxide is generated and packaging waste is radically reduced." In addition, by sharing the RPCs within IFCO's closed pooling system, the SmartCycle, the Banana Lift Lock consumes less energy and water over its entire life cycle than single-use packaging. The solution avoids waste on several levels. With the RPCs lasting up to a decade - and being 100% recycled into new IFCO RPCs when beyond repair - the SmartCycle is an ingenious circular economy model for banana packaging. A positive development for the environment and perhaps also a defining moment for the banana industry. Expert teamwork for supply chain challenges While one of the key drivers of change is sustainability, in the world of supply chains, efficiency can never be neglected. This is particularly true in the banana supply chain, which is a complex logistical system involving numerous actors, including growers, suppliers, importers and retailers. To ensure that the Banana Lift Lock fits into the company's sophisticated concept and supports a smooth logistical process, Penny initially carried out tests with preselected Packstations and selected Penny stores. In these branches, the bananas were tested in the Banana Lift Lock with very positive results. The requirements and standards at Penny were high. To be accepted, the Banana Lift Lock had to function on multiple levels and fit seamlessly into Penny's established operations. In addition, it should meet the strict criteria for the BioHelden brand, the company's organic range, and protect the sensitive fresh products from damage during transport. How a more efficient supply chain avoids waste Above all, the joint use of the Banana Lift-Lock solution via the closed pooling system IFCO SmartCycle should make the company's logistics processes even more efficient. In the case of PENNY, PDN (Plantaciones del norte) operates the plantation in the Dominican Republic and Biofrusan is the supplier/importer for Europe. Biofrusan started importing in the 1990s and is considered a pioneer in the trade of exotic organic fruits and nuts for the European markets. Mariesa Hundt, Managing Director of Biofrusan, has a clear idea of sustainability and an environmentally friendly approach to the supply chain. "For me, it's not just about offering customers a healthier product with our organic range," says Hundt. "Conventional retailers are also striving for this. Rather, it is about keeping the overall ecological footprint of our company as low as possible. That's the most important driving force for us." For this reason, Hundt also supports the replacement of disposable packaging with long-term reusable solutions. The decision for sustainability made easy Realistic experiments are the expertise of Michael Meierhöfer, Vice President Sales, New Market Verticals at IFCO. With over 15 years of experience in the fresh food supply chain, including in North America, Latin America and Europe, Meierhöfer is familiar with the specific challenges of the banana supply chain. As the leader of the team that designed and adapted the reusable container for the banana chain, he is also the lead for the hands-on testing of the Banana Lift Lock. Due to his expertise and experience, Meierhöfer was the ideal person to organize and evaluate the transport of Biofrusan bananas in the Banana Lift Lock in close cooperation with the Penny team. Meierhöfer worked closely with Penny, PDN and Biofrusan to ensure that the tests ran smoothly. "What sounds like a dramatic change was actually easy to implement," says Meierhöfer. "That's because our development team follows a customer-centric and targeted innovation process. This approach ensured that the Banana Lift Lock was designed with the specific challenges of the banana supply chain in mind." A cooler start to a long and demanding journey As with any banana supply chain, the challenges start at the plantation. For Penny that means: in the Dominican Republic, on the PDN plantation. This is where the optimal properties of the Banana Lift Lock begin to take effect. When it comes to harvesting, speed is of the essence. That's why the Banana Lift Lock was developed to quickly lower the temperature of the bananas. "Faster cooling reduces premature ripening and increases shelf life. This has a positive effect on the quality of the bananas," explains Meierhöfer. "The superior design of our Banana Lift Lock provides better ventilation, making banana cooling much more efficient." But first the bananas have to be packed. A smooth transition that starts with the banana packers To ensure the excellent ventilation of the Banana Lift Lock is fully utilized, IFCO has teams of banana packing experts who train banana packers directly at their packing stations on the plantation. They offer hands-on and quick on-site training to ensure the packaging process runs efficiently. But there is another reason for such support, as Meierhöfer makes clear. "Any change in an established process can be difficult for those affected to accept," he says. "That's why we spend a lot of time with the plantation workers on site, listening to their concerns, observing the way they work and supporting them in the transition." It was important for the banana packers to be closely involved in the transition process and to see the positive impact of such a move. "The whole team understood the importance of being the first to pack the bananas in sustainable, reusable crates," says Luis Salazar, IFCO's banana packaging consultant, who operates in South America and supports trials and deployments . Salazar helped conduct the training sessions. "We really valued their feedback and took their concerns seriously, so everyone felt they were responsible for changing the established system," explains Salazar. "It also helped that it was incredibly easy to get used to the new innovative way of packaging bananas." The trials end with quality controls and evaluations Crucially, the tailored on-site training ensures boxes are packed more efficiently and correctly. During the trials, the bananas were checked at the most important stages of the banana supply chain. Before packaging, before and after ripening and again at the POS. . "In total, we carried out six large-scale trials with our RPCs from the plantation to the POS for the Penny pilot project," explains Meierhöfer. In each trial, a container with 1,100 Banana Lift Lock RPCs was shipped to Europe. "Each time, we have been able to demonstrate that when the delicate bananas are packed and transported in our RPCs, they arrive at their destination in a perfectly ripe condition." The trials confirm that with the right approach, waste can be avoided at every stage of the supply chain. The trials end with quality controls and evaluations Crucially, the tailored on-site training ensures boxes are packed more efficiently and correctly. During the trials, the bananas were checked at the most important stages of the banana supply chain. Before packaging, before and after ripening and again at the POS. . "In total, we carried out six large-scale trials with our RPCs from the plantation to the POS for the Penny pilot project," explains Meierhöfer. In each trial, a container with 1,100 Banana Lift Lock RPCs was shipped to Europe. "Each time, we have been able to demonstrate that when the delicate bananas are packed and transported in our RPCs, they arrive at their destination in a perfectly ripe condition." The trials confirm that with the right approach, waste can be avoided at every stage of the supply chain. Marc Oliver Roßmann, Senior Category Buyer Fruit, Flowers and Plants at Penny, also came to the same conclusion. "Thanks to the professional and comprehensive support provided by the IFCO experts on site on the plantation in the Dominican Republic, the changeover to the Banana Lift Lock went incredibly smoothly," says Rossmann. "In terms of quality, sustainability and supply chain efficiency, we are really impressed with the results." See here for more: PENNY vermeidet Abfälle in der Bananenlieferkette | IFCO #smartdiscount #penny #ifco #banana #package #bio #ecology #rewe #packaging #pooling #crates #drc #discount #retail #consulting #discountretail #discountretailconsulting

The Aldi Nord Group of Companies is a pioneer in testing sustainable delivery vehicles with long-term partner, Volvo Trucks. 10 new FM electric trucks are now part of the German Aldi Nord fleet. The electric trucks will be used at Aldi's regional distribution centers in Bargteheide (Schleswig-Holstein/Hamburg), Herten and Radevormwald (NRW) and Seefeld (Berlin/Brandenburg). The advantage of the e-trucks at a glance: - daily fresh deliveries of around six stores per day per truck in a 100% CO2”-free and cost effective manner; - quiet and maneuverable trucks help to reduce noise pollution from delivery traffic, especially in urban areas; - CO2 savings: approximately 486 tonnes per year for all ten e-trucks. "With the introduction of the electric vehicles, Aldi Nord is responding to the growing challenges in the global transport system, such as the increasing environmental impact of road freight transport. Additionally, Aldi is making further contribution to reducing its own greenhouse gas emissions," says the Managing Director Supply Chain Management at Aldi Nord in Germany. As part of its own sustainability strategy, Aldi Nord has already reduced CO2 emissions by 48 per cent between 2015 and 2020 in Germany - and this figure is set to rise to 55 per cent by 2030. The purchase of the e-trucks is being funded by the Bundesministerium für Digitales und Verkehr as part of its directive on the promotion of light and heavy commercial vehicles with alternative, climate-friendly drive systems and the associated refuelling and charging infrastructure (KsNI). The Parliamentary State Secretary to the Federal Minister for Digital Affairs and Transport, is pleased with the cooperation: "Switching to climate-friendly drive systems is a necessary step if we want to achieve our ambitious climate targets for road freight transport. Electric mobility can make a decisive contribution to the decarbonisation of the transport sector, in passenger transport and freight transport". Source: Aldi Nord #smartdiscount #aldi #etrucks #electrictrucks #volvo #co2free #germany #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

Discount Retail Chain Lidl's owner Schwarz Group has announced plans to invest 200 million euros in its online business Schwarz Digits. According to RetailDetail, the investment will underpin Kaufland's digital expansion, allowing the chain to launch e-commerce in two new markets Austria and Poland. Consumers in Poland will also be able to shop online and shop in stores, while consumers in Austria will only be able to make online purchases, as the company does not have any stores in the country yet. Last year, the retailer also launched online stores in Slovakia and the Czech Republic. In addition, the investment will help Lidl to improve its multichannel business and the profitability of its online business. Last year, the digital channel recorded sales growth of 12.1%, from 1.73 billion to 1.94 billion euros, but also a growth in losses from 71 million to 219 million euros. Read more: InStore #smartdiscount #schwarz #lidl #europe #schwarzdigits #ecommerce #investment #growth #expansion #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Essential products in the family shopping basket, such as milk, oil or toilet paper, among others, are part of the products that families buy the most in the Colombia in stores known as 'hard discounts' In Colombia, families have changed their shopping habits due to high inflation and the economic crisis, increasingly opting for so-called hard discount stores to make their household purchases. According to an analysis by NielsenIQ (NIQ), a leading consumer intelligence company, this type of establishment has experienced significant growth in 2023 in Colombia, standing out for its ability to offer products at discounted prices. During 2024, hard discounters have seen an increase in their sales volume of 12.1% compared to the previous year, contrasting with the negative trend of other sales channels that suffered a contraction due to the austerity measures adopted by consumers. NIQ revealed that this increase was mainly due to the purchase of essential products such as milk, oil, toilet paper, among others, which reflects the growing importance of these establishments in the family budget. With a remarkable 75% of this growth attributed to an increase in the frequency and volume of purchases by regular consumers, and the remaining 25% to new customers from traditional supermarkets, neighborhood stores and drugstores, hard discounts are consolidated as a preferred option for many Colombians. According to Camilo Escobar, director of Customer Success for NielsenIQ Colombia, this phenomenon is not temporary but part of a solid and growing trend in the country, he told Portafolio. It is estimated that 96% of Colombian households shopped at these establishments in 2023, underscoring their relevance in the country's retail market. From a modest 2% of total consumer spending in 2014, hard discounts have climbed to 25% in 2023, demonstrating their considerable impact on consumer habits and competition with other retail formats. This expansion has resulted in a scenario where, according to Escobar, these establishments emerge as an essential component of the consumer landscape in Colombia, effectively positioning themselves to continue growing in the future. “In summary, the hard discounter channel has emerged as a key player in the mass consumption landscape in Colombia, driving significant growth in a context where other channels are experiencing contractions. Its ability to offer products at competitive prices and its rapid expansion throughout the country position it as a fundamental store format for Colombian consumers in the years to come,” Escobar told the media specialized in economics. How does the hard discount model work? The hard discount model's objective is to offer a certain limited amount of assorted products at very low prices. However, it is worth highlighting that this type of business has a reduced profit margin, and its guidelines aim to generate greater operational efficiency combined with cost optimization. The success of these discount stores consists of attracting customers with low prices but at the same time being competitive with other platforms, and to do so they join forces to focus their product offering on everything related to daily consumption. Some of the costs that are reduced under this discount store scheme are those related to advertising and promotional expenses. In addition to this, several of the products that these stores handle usually include private labels, which are manufactured by the same hard discounts. In addition to the above, these store models always have a high turnover and availability in their products, in addition to providing their customers with a very simple experience when shopping, and this translates into the few aisles and the number of checkout stands, to make it easier to pay. and thus help reduce the number of decisions that the consumer must ultimately make. Read more: Así han cambiado las costumbres de compra de los hogares en Colombia: 9 de cada 10 prefieren comprar en tiendas de descuento como D1 o Ara (infobae.com) #smartdiscount #ara #d1 #ismo #basket #shopping #behavior #cost #model #hardiscount #profit #grwoth #expansion #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #nielseniq

Discount Retail Chain Aldi USA has made in connecting with shoppers as people continue to place a high priority on keeping their grocery bills in check, according to data from Placer.ai. The discounter, which said last month it plans to add about 800 new stores over the next few years after notching rapid growth in 2023, recorded its strongest gain in foot traffic during the past year last month when visits were up by 28.5%. Placer.ai noted in its report that the increase in visits to the chain is due in part to the company’s expanding store count, adding that Aldi’s intense focus on value has also fueled its popularity with shoppers. Lidl has also made progress in drawing shoppers to its locations, but the chain’s growth has been considerably slower than Aldi’s. While the company recorded rising foot traffic every month over the past year except January, Lidl didn’t exceed the 10% mark in any month during the period. Like Aldi, Lidl has been opening new stores, but the company has only about 170 stores in the U.S. compared with Aldi’s fleet of about 2,400 locations. Placer.ai said its data show that Lidl and Aldi are reaching distinctly different groups of shoppers, with the latter chain appealing to wealthier customers. For example, more than 7% of Aldi’s shoppers fall into the “Small Town Low Income” category, while fewer than 1% of Lidl’s customers belong to that segment, according to the report. Lidl’s potential market of shoppers, defined as people who live in the areas its stores serve, have a median household income of about US$79,000 per year, and the grocer is bringing in people who annually take in almost US$10,000 more than that amount, according to the data analysis firm. Aldi, meanwhile, attracts shoppers with a median household income of about US$67,000, slightly lower than the amount people in its potential market earn, Placer.ai reported. Read more: Aldi consistently outpaces Lidl in drawing shoppers, data shows | Grocery Dive #smartdiscount #aldi #usa #expansion #placer #outpace #lidl #expansion #growth #shoppers #customers #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Discount Retail Chain DALI has announced plans to expand its presence in Luzon, aiming to have up to 950 stores by the end of the year. “We’re only going to stay in Luzon for now…, (and) we’re probably going to hit about 900 - 950 stores by the end of this year,” Anja Grote Westrick, director of strategic supply chain and ESG officer at DALI operator Hard Discount Philippines, Inc., told reporters on Tuesday. Dali is a discount grocery chain that currently has over 250 stores in the Philippines, providing competitive pricing in local neighborhoods. “The whole discount principle is you have a limited assortment, but the products that you have in your assortment are selling at high volume,” Ms. Westrick said. DALI also targets to open in June its sixth distribution center in Naic, Cavite, a town about 50 kilometers south of Manila. “On every store, there’s a certain limit in terms of sales, so you need to expand in terms of stores as much as possible so that you generate volume,” Ms. Westrick said. “When you go out to the countryside, it’s not that much… so there, people are more used to taking a tricycle to the store. And there, you can spread out the stores a little bit more,” she added. When asked about the provinces where the new DALI branches will be set up this year, Ms. Westrick said that they would be established “everywhere where we are now… it’s just picking the spots in between.” The majority (around 60-70%) of DALI’s products are locally manufactured, while several others are imported from Malaysia, China, and Europe. In March, Singapore-based growth equity firm Venturi Partners announced a US$25-million investment for the expansion of DALI. Read more: DALI targets to expand presence in Luzon with 950 stores by yearend - BusinessWorld Online (bworldonline.com) #smartdiscount #dali #phillipines #harddiscount #convenience #stores #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google #venturicapital

Discount Retail Chain Aldi UK's successful ascent over Asda, positioning itself as the third-largest grocery retailer. According to Total Till figures from NIQ, over the 12 weeks to 23 March, Asda's market share stood at 11.7%, while Aldi's surged ahead to 12.2%. Notably, Asda encountered a period of diminished performance, with their sales seeing a mere 0.8% growth. This underperformance has been attributed to the challenges stemming from new ownership and the weight of heavy debt post-acquisition by the Issa brothers and TDR Capital, a concern echoed by leading retail analyst Clive Black of Shore Capital. Asda has expressed determination to regain ground, and as the industry data fluctuates, it's imperative for branded suppliers to realign their customer portfolio strategies to accommodate the impact of Aldi and Lidl's continued growth. These developments elevate concerns about how retailers like Asda and Morrisons might grapple with their escalating debt burdens in the face of Aldi's and Lidl's persisting expansion. Asda's Market Share and Sales Growth in Comparison to Aldi During the 12 weeks to 23 March, Asda's market share fell behind Aldi, with Asda holding 11.7% while Aldi surged to 12.2%. This was magnified by Asda's minimal sales growth of just 0.8% during the same period, further highlighting its underperformance in comparison to Aldi. Asda's struggles under new ownership, burdened by heavy debt resulting from the acquisition by the Issa brothers and TDR Capital, have compounded the challenges. This has led to concerns raised by retail analyst Clive Black, who described Asda's trading momentum as "worrying." This underlines a challenging period for Asda as it faces a dynamic retail landscape. The Upheaval in UK Grocery Retail In light of Clive Black's apprehensions about Asda’s trading momentum, there is a notable anticipation for the industry's response during this turbulent period. As Asda acknowledges the market share data, it also eyes Mohsin Issa's ambitious goal to propel Asda to the position of the UK’s second biggest food retailer, surpassing Sainsbury’s. This intensifying competition prompts a closer examination of how branded suppliers should strategically navigate the market, considering the growth trajectory of discount retailers such as Aldi and Lidl, as the industry continues to witness shifts in market share dynamics. The Impact on the Retail Sector The escalating success of Aldi and the challenging position of Asda could lead to a significant impact on other major retailers, particularly Morrisons, as they strive to adapt and grow in a fiercely competitive market. Furthermore, the future trajectory for Asda and Aldi within the UK grocery landscape may provoke shifts in market dynamics, posing unique challenges and opportunities for these industry players. As the market share of Aldi and Lidl continues to rise, branded suppliers are compelled to reassess their customer portfolio strategies, considering the growing influence of these discount retailers in shaping consumer preferences and market trends.