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.

China's regional cities are seeing a boom in discount snack stores, with the number roughly tripling to as many as 25,000 since 2022, as the country's stalling economy turns consumers more frugal. At a Super Ming location in the eastern city of Nanjing, the shelves on a recent day were lined with snacks and instant foods. Chocolate chip cookies from a U.S. manufacturer were being sold for 4.90 yuan (70 cents) per bag, considerably less than the 6.40 yuan price at a local supermarket and the 8.50 yuan at a convenience store. Similar price differences could be seen for various products from Chinese and Japanese manufacturers. "It only cost me 80 yuan to buy two plastic bags full of snacks," said a woman who came out of the shop with bags in both hands. "It's close to my workplace, so I come here every week." In China's urban areas, plenty of stores sell food and daily necessities that are near their expiration or best-by dates at low prices, but the products at Super Ming were manufactured more recently. "We're cutting down on the number of middlemen," a store employee said. "Our prices are so low that local mom and pop stores purchase their products from us." China's Pacific Securities said discount snack stores have easier inventory management than supermarkets that also sell processed foods, and they can secure profits by increasing turnover. The turnover for discount stores is around 15 days, compared with 40 to 50 days for supermarkets. Super Ming originated in 2019 in inland Yichun, Jiangxi province. Its stores, located mainly in regional cities, quadrupled from about 700 at the end of 2022 to more than 2,900 at the end of 2023. In fall 2023, the company that operates Busy For You, another discount snack chain, acquired 88% of the shares in Super Ming's operating company, according to corporate data provider Qichacha and other sources. Busy For You, founded in the Hunan province city of Changsha in 2017, doubled its stores from 2022 to over 4,000 in October 2023. Super Ming and Busy For You have a combined 7,000 shops as of last year. Their scale has given them leverage over manufacturers, lowering purchasing costs. Wanchen Group, which operates rival Haoxianglai, is also expanding its network to more than 10,000 stores by 2025 from over 4,100 currently. Though supermarkets and online shopping are widespread in China, brick-and-mortar discount snack stores have gained ground rapidly with prices as competitive as those of major online retailers. This gives the physical stores advantages in proximity and convenience. Huaxi Securities estimates there is room to open 87,500 discount snack stores in mainland China. The spread of discount businesses is not limited to snacks. HotMaxx, which operates shops in Shanghai and elsewhere, opened a large store in the eastern city of Hangzhou in December, advertising itself as Shanghai's king of sales. HotMaxx sells food and daily necessities that are nearing their expiration date at low prices. The new Hangzhou store also will carry shoes and apparel from sports brands. Fresh food e-commerce company Dingdong also opened a low-cost supermarket in Shanghai in November, selling fresh vegetables, seasonings, snacks and more. Chinese consumers have shifted toward saving more money. The country's 2023 consumer price index increased 0.2%, the lowest growth rate in 14 years, the National Bureau of Statistics reports. Monthly advertised salaries for job openings fell year-on-year for three consecutive quarters through the October-December period, human resources company Zhaopin reports. Consumers are tightening their purse strings as employment and income improvements are slow to come. Read more: Thrifty Chinese consumers flock to discount snack shops - Nikkei Asia

Discount Retail Chain Aldi UK was the UK’s fastest-growing supermarket in september last year, and had been so for five months in row, according to Kantar data. Its sales were up 17.1% year on year, and its market share stood at 10.1%, having broken double digits for the first time that spring. It might have seemed like a long time ago to Aldi executives reading the latest Kantar data, covering the 12 weeks to 17 March 2024. That showed it was only the seventh fastest-growing major supermarket, behind Ocado, Lidl, Sainsbury’s, Tesco’s, Waitrose and Morrisons. Aldi’s sales were up 3.1%, compared with the 4.2% growth of the total market. It left its market share at 9.8%, down from 9.9% a year earlier. So what’s changed for the former discount growth machine? Stores Whatever it is has not happened equally to Aldi’s most direct competitor (see chart, below). Lidl was the fastest-growing supermarket for the sixth month in a row in February, and second after Ocado in March. Lidl’s sales growth was 8.8%, putting its market share at 7.8%, up from 7.4% a year earlier. Both discounters are working on similarly tough comparatives, in March 2023, Aldi’s sales were up 25.4% year on year while Lidl’s had climbed 25.8%. Meanwhile, Aldi has opened about 20 stores in the past year, taking its UK total to “more than 1,010”, while Lidl’s estate has been static at “over 960”. But Lidl’s stores have “never been as busy as Aldi’s”, says Paul Stainton, UK partner at private label consultancy IPLC and a former Aldi buying director. Therefore “Lidl have had a lot more potential to grow like-for-like sales by making existing stores sweat harder,” he says. “When I was at Aldi [until 2020], our turnover was about a third more per store.” It can be seen in the retailers’ latest full-year results, covering 2022. Lidl GB’s revenue was £9.3bn from an estate that by the end of the period stood at about 950 stores. Aldi’s revenue in both the UK and Ireland was two-thirds more – £15.5bn – from roughly 20% more stores. It can also be seen changing, says Stainton. Kantar’s latest data shows Aldi added £97m in sales year on year, equating to roughly £40,000 per store, while Lidl added £207m, or about £216,000 per store. Aldi Price Match If Aldi has less capacity to embrace new customers, it won’t have helped that taking them from the traditional ‘big four’ has grown tougher: as of February there is not single traditional big four supermarket that is not promising it matches hundreds of Aldi prices. Sainsbury’s and Tesco have the biggest Aldi price match schemes, covering over 600 products apiece, and are the fastest growing of the traditional supermarkets, with sales up 6.7% and 5.8% year on year respectively. Sainsbury’s this week aped Tesco by launching Low Everyday Prices, meaning the price match is now part of an identical three-pronged value approach at each of the two supermarkets, also including loyalty pricing. “We’ve seen incumbent grocers adopt a much more aggressive pricing strategy targeting the discounters, but particularly Aldi,” says Retail Economics CEO Richard Lim. Asda has increased its price-matched lines from 330 to 430 since February, while Morrisons matches 200 products. “The schemes are so widespread now,” says Stainton. “You could argue it’s free advertising for Aldi but it’s also telling the Sainsbury’s consumer ‘don’t worry about that discount stuff, we’re covering it.’” The schemes will also have made it “difficult for Aldi to increase their prices” to cover inflation on their smaller assortment, says Ged Futter, director of The Retail Mind. And while Asda and Morrisons match Aldi and Lidl, those schemes only arrived this year, while Tesco’s Aldi campaign launched four years ago and Sainsbury’s three. Aldi maintains it has seen no direct evidence the price match schemes are benefiting rivals and points to the £580m it gained in spend switching from all key competitors over the past 12 months, according to Kantar. Lidl Plus That switching pattern may be true over the 12-month period, but there is one rival with which the flow of spend has been in the other direction more recently. Lidl has been consistently taking spend from all other supermarkets, including Aldi, since autumn last year. When Lidl released the Kantar numbers at Christmas £116m switching from rivals in the 12 weeks to 24 December including £12.2m from Aldi experts credited its loyalty app. The Lidl Plus app, which launched in 2020, rewards users with personalised product discounts, while enabling Lidl to collect data on their purchases and preferences. It also gives away freebies, and 38% of shoppers use it [NIQ Homescan November 2023]. Throughout February, Lidl gave users one free bakery item per shop, plus discounts on further bakery purchases, while in-store signs told shoppers ‘Doughnut miss out’ and ‘Be a smart cookie… Download Lidl Plus.’ It is not seen as coincidence that Lidl’s sales in the 12 weeks to 17 March were helped, according to Kantar, “by a 24% rise in sales of baked goods”. Lidl gave app users a free bakery item with every shop in February, while encouraging new sign-ups Paul Foley, Aldi’s UK & Ireland CEO from 1999 to 2009, says: “There is no doubt in my mind the Lidl loyalty scheme is a winner and that this marketing tool is at the centre of their current success. “The loyalty scheme is hailed worldwide within the discount industry as the first scheme that encourages more than 60% transaction penetration, so you get a treasure trove of information, but does not cost anything like the 2%-plus of revenue that traditional points systems do.” The recent choice of pushing bakery items in particular is “really smart”, says IPLC UK partner Richard Harrow, because Aldi has bakeries in only 16 stores. It has highlighted Lidl’s “unique proposition in the discount space” to consumers migrating from the mults. Ronny Gottschlich, who was Lidl’s UK CEO from 2010 to 2016, a period in which it introduced bakeries, notes the category is also “closely interlinked with frequency of shop, and so it simply means customers actually shop with you more in absolute terms”. “It’s an area of success for Lidl where Aldi has not been doing anything,” he adds. The promotion of it has further played to Lidl’s strengths because “they produce their own bakery products, in their own facilities”, meaning the margin pressure is lower than in other categories, says Marc Houppermans, executive partner at Düsseldorf-based DRC Discount Retail Consulting and a former Aldi Netherlands board member. And clearly, “such a giveaway can boost your traffic, and so your sales”, says fellow DRC executive partner William Snollaerts, also a former Aldi Netherlands board member. Aldi’s plans Aldi is believed to be considering launching its own app at international level, though it maintains there are no plans. It has other tasks with which to occupy itself. It is rolling out a new SAP Ariba IT system internationally, including in the UK, where it has started to go live, region by region, in the past few weeks, with new administration requirements for suppliers. Since 2022 it has also been splitting some buying functions with Aldi Global Sourcing in Salzburg, which Futter says has an “ever-growing influence”. For Aldi, it all promises an even more efficient business, exploiting economies of scale where it makes sense. It sees the broader challenge, highlighted by the trading figures, as expanding capacity to welcome new customers, rather than any diminishing demand from them. Hence late last year it created a new national real estate team, aided by property consultancy Colliers, to better navigate the various headwinds that hold up new stores, not least planning objections from rival supermarkets. Aldi is targeting 35 new stores this year, in a £550m investment. And this week, in the wake of the Kantar data, it pledged to cut “more prices than ever”, by investing even more in 2024 than the £380m it pumped into lowering prices last year. “We are very pleased with the performance we have delivered over the past few years,” says an Aldi spokesman. “Over three decades in the UK, we have proven time and again that we deliver on long-term plans thanks to our consistent strategy, simple business model and private ownership. “We are looking forward to continuing that growth by welcoming additional customers, opening new stores and investing in our infrastructure. We won’t stop until we have made our quality food and unbeatable prices accessible to all.” Read more: What has happened to Aldi’s stratospheric growth? | The Grocer

Discount Retail Chain Aldi USA wrapped up its acquisition of Southeastern Grocers, giving a boost to its mission to exceed 3,000 store locations by 2028. It currently operates 2,362 stores, a slight increase from February's data. Although its present growth pace falls short of the 800 new stores pledged by 2028, the acquisition is set to inject nearly 400 new locations through Winn-Dixie and Harveys Supermarket banners. The comprehensive strategy includes maintaining existing banners such as Winn-Dixie and Harveys Supermarkets, foreseeing an accelerated opening trend moving ahead. They declared a phased conversion plan beginning mid-summer, estimating around 50 stores to transition in late 2024 and the rest in 2025. With this significant acquisition, Aldi is poised to fortify its national standing and emerge as one of the United States' fastest-growing grocers. Aldi's Projections for Store Expansion Aldi has set ambitious targets to surpass the 3,000 store mark by 2028, with the current store count standing at 2,362 as of March 12. The recent acquisition of Southeastern Grocers, incorporating Winn-Dixie and Harveys Supermarket banners, is projected to elevate the total store count by as many as 400 locations. Aldi looks forward to opening about 50 new stores during the latter part of 2024, expecting the majority of them to be rebranded as Aldi by 2025. This strategic expansion highlights Aldi's commitment to become one of the nation's fastest-growing grocers, underpinning its national growth strategy. Kroger's Store Count and Uncertainties of Expansion As of March 12, Kroger and its various banners, such as Harris Teeter, King Soopers, Mariano’s, and more, were reported to be just under 3,000 stores, as determined by data from ScrapeHero. With the ongoing litigation surrounding the potential acquisition of Albertsons, the approval for Kroger’s store count expansion remains uncertain. Regardless of the outcome of this lawsuit and the possibility of merging with Albertsons, Kroger's potential for store count expansion remains in question. However, should Aldi continue its swift strategy of opening stores, it could rapidly ascend into the ranks of the nation’s largest supermarket chains. The Grocery Store Retail Race Walmart currently holds the lead with an extensive fleet of 4,618 U.S. stores as of March 18. This towering number serves as a striking comparison to the store count projections and recent acquisitions of both Aldi and Kroger. The overwhelming difference in store count underlines the fiercely competitive landscape within the industry. Aldi's expansion strategy and Kroger's potential acquisitions showcase the fervent pace of growth in an endeavor to keep stride with industry giants. Read more: Could Aldi surpass Kroger Co. store count? (supermarketnews.com)

Discount Retail Chain Aldi USA introduces ALDI+, a revolutionary grocery membership program that shatters the traditional model and offers unlimited access to top-quality products at everyday low prices. Unlike other retailers, ALDI doesn't charge a single penny for its membership. This exclusive program provides shoppers with the crown-jewel level membership at an additional zero cost, granting access to premium USDA quality meat, fresh produce, and exquisite yet affordable wine. But there's no kidding about the quarter needed to unlock your cart, the good news is you get it back when your cart is returned. ALDI, the low-price leader and one of America’s fastest-growing retailers, continues to redefine the grocery industry by offering unparalleled value without the need for subscriptions, membership cards, or extra fees. ALDI+: Revolutionizing Grocery Memberships The new membership program, ALDI+, was unveiled with an extraordinary 331.9 million members on day one, which interestingly mirrors the entire U.S. population. ALDI+ offers shoppers unrestricted access to quality products at everyday low prices, without any membership fee. Anyone can join ALDI+ for free, and there's even an option to upgrade for additional perks at no extra cost, including USDA quality meat, fresh produce, and premium, affordable wine. This genuine approach sets ALDI apart from other retailers, with a commitment to providing great products at everyday low prices without the need for any additional fees – except for the mere quarter needed to unlock the cart, a deposit that’s promptly refunded upon its return. ALDI+ Membership Benefits: Quality, Affordability, and Savings Membership with ALDI+ brings an array of benefits, including access to USDA quality meat, fresh produce, and premium yet affordable wine. The grocery retailer maintains a steadfast commitment to providing exceptional products at everyday low prices without imposing additional fees, ensuring that all members receive unmatched value. With a simple, efficient approach to operations, ALDI saves its loyal customers up to 40% on their weekly grocery bills compared to traditional stores, solidifying its position as America’s low-price leader. ALDI+ Accessibility ALDI+ is accessible at all ALDI locations nationwide, ensuring that every shopper can benefit from this ultimate grocery membership. With no membership cards, fees, or subscriptions required, shoppers can simply show up and begin enjoying unlimited access to quality products at everyday low prices. For those interested in joining the membership program, more information is available at aldi.us/aldi-plus. This simple and straightforward approach allows anyone to take advantage of the incredible savings and benefits offered by ALDI+ without any hassle or extra costs. Read more: ALDI.membershipprogram.pdf

Discount Variety Retail Chain SoLow's expansion plans in Belgium include a targeted expansion in Vlaanderen and Wallonië over the next few years. With its primary focus on Belgium, the discount chain aims to open 22 stores in a span of 2 to 3 years, distributing them with a vision of 16 outlets in Vlaanderen and 6 in Wallonië. This strategic approach is rooted in the belief that accessibility and localized presence in both major regions are crucial for sustained growth. In addition to its physical expansion, SoLow is also in the process of establishing a webshop in Vlaanderen, aligning with its commitment to adapt to the evolving retail landscape. Expanding Presence in Belgium With five existing stores in Vlaanderen, SoLow is already establishing a strong foothold in the Belgian market. The highly anticipated opening of the first store in Wallonië next year marks an exciting milestone for the company. Setting ambitious targets, the discount retail chain aims to have a total of 22 stores in Belgium within the next 2 to 3 years, with the majority, 16, planned for Vlaanderen. This considerable expansion underscores SoLow's commitment to serving a broader customer base in Belgium and its dedication to providing affordable party and novelty items to a growing audience. Expanding Strategy and Market Approach Focusing on large cities is crucial for our expansion strategy as we see abundant opportunities for growth in these urban areas. The current market conditions emphasize the pivotal role of competitive pricing, and as such, we are prioritizing this aspect to resonate with the needs of our customers. Additionally, exploring the launch of a webshop in Vlaanderen is part of our comprehensive plan to enhance accessibility for our clientele and adapt to the evolving retail landscape. SoLow's International Expansion Diego Abeel, the country manager of SoLow, is eyeing not only expansion within Belgium but also across the borders into France and Germany. The discount retailer's decision to venture into Wallonië is intricately linked with its broader strategy of international expansion. This move comes as no surprise, given the company's proactive planning for international growth since its debut in Vlaanderen in 2022. It signals SoLow's ambitions to establish a solid foothold beyond Belgium's borders and marks a pivotal step in its quest for broader market penetration and influence. Read more:Discounter SoLow trekt naar Wallonië | Gondola Source: SoLow

Amazon has announced that it is discontinuing its pursuit of autonomous “Just Walk Out” technology that uses artificial intelligence to enable shoppers to take items and have the bill charged directly to their account. The company said in an email that they made the decision to cut the technology, which can be found in Amazon Fresh, and Amazon Go locations, due to customer feedback. “We’ve invested a lot of time redesigning a number of our Amazon Fresh stores over the last year, offering a better overall shopping experience with more value, convenience, and selection and so far we’ve seen positive results, with higher customer shopping satisfaction scores and increased purchasing,” said Amazon spokesperson Jessica Martin in a statement. “We’ve also heard from customers that while they enjoyed the benefit of skipping the checkout line with Just Walk Out, they also wanted the ability to easily find nearby products and deals, view their receipt as they shop, and know how much money they saved while shopping throughout the store.” Amazon is instead focusing on its AI-powered shopping carts, known as Dash Carts, Martin said. “To deliver even more convenience to our customers, we’re rolling out Amazon Dash Cart, our smart-shopping carts, which allows customers all these benefits including skipping the checkout line,” Martin added. Amazon noted that it will continue to offer Just Walk Out at Amazon Go stores, smaller format Amazon Fresh stores located in the U.K., and third-party retailers. As recently as January, Amazon announced that it was rolling out the tech at St. Joseph’s/Candler at its Candler Hospital Campus in Savannah, Ga., making it the first hospital to adopt the tech. “We look forward to bringing Just Walk Out technology and our employee badge pay capability to more health care facilities,” the company said in January. At that time, Amazon said the Just Walk Out tech had been deployed at more than 120 third-party locations, such as airports, stadiums, university campuses, grocery and convenience stores, theme parks, cafes, and elsewhere in the U.S., U.K., Australia, and Canada. Amazon noted in that January press announcement that the tech was also being used in dozens of Amazon-owned stores. In the announcement on Tuesday, the company confirmed that it would remove the Just Walk Out tech at its recently renovated Amazon Fresh stores in Chicago and Southern California. “To deliver a better shopping experience, we brought an expanded selection, low prices on even more grocery items, and greater convenience with updated checkout options to redesigned stores, and we’re pleased to see those changes resonating with customers. As part of those updates, we’re removing Just Walk Out technology in favour of Amazon Dash Cart, our smart shopping cart,” the company said. Read more: Amazon walks out on cashierless tech (supermarketnews.com)

Discount Retail Chain Dollarama fiscal 2024 and fourth quarter sales saw double digit growth as Canadians continued to seek out the chain’s discounted groceries and other products. Following the earnings release, the company raised its quarterly dividend by nearly 30 per cent (9.2 cents per share, up from 7.08 cents per share) and forecasts strong comparable store sales growth of 3.5 to 4.5 per cent above estimates. Fiscal 2024 sales increased 16 per cent to $5.86 billion compared to $5 billion in the previous year, while fourth quarter sales grew 11.3 per cent to $1.63 billion compared to $1.47 billion last year. Comparable store sales in fiscal 2024 grew 12.8 per cent over and above a 12.0 per cent growth the previous year. Comparable store sales in the fourth quarter climbed 8.7 per cent over last year. “In fiscal 2024, we met or exceeded our guidance for all our key performance metrics, including higher than expected comparable store sales, translating into a 29 per cent increase in EPS. Our strong financial and operational performance demonstrates the enduring strength of our business model and that our compelling value proposition continues to resonate with consumers, including in an uncertain economic context,” says Neil Rossy, president and CEO of Dollarama. “Looking ahead to Fiscal 2025, we expect to generate strong comparable store sales growth of between 3.5% to 4.5%, over and above an exceptional two years of double-digit growth, by staying true to our value and convenience promise to Canadian consumers.” Read more: Steady demand for discount drives Dollarama sales above expectations - Grocery Business Magazine

According to a study by NielsenIQ, in the last decade this format registered an exponential growth, going from 2% to 25% of Colombian household spending. Although the economy only grew 0.6% last year, household consumption remained one of its main drivers, in contrast to the collapse in investment. But, in a context of slowdown and high interest rates, the consumption of Colombian households is increasingly 'defensive' and experiential, which is being taken advantage of by 'hard discount' stores such as D1 or Ara. In fact, according to a NielsenIQ study on consumer buying behavior, mass consumption registered significant changes with a prominent protagonist: the 'hard discounters' channel, which registered a 12.1% increase in volume compared to 2022, while other channels have experienced contractions. According to data compiled by NIQ, total mass consumption in Colombia maintained a slight negative trend in volume of -0.3% in 2023 compared to the previous year. However, this slight decline was offset by the performance of the hard discount channel. WHAT'S DRIVING THIS GROWTH? In general terms, the analysis reveals that products in the basic basket such as milk, oil, toilet paper, deli meats and laundry detergent are the main contributors to the positive dynamics of the format. 75% of the channel's growth is attributed to higher consumption by its households, which translates into higher purchases in the FMCG categories during 2023. This shows how households are spending more and more on this channel, expanding the size of the shopping cart. In addition, the remaining 25% of the channel's growth is explained by households that previously made their purchases in neighborhood stores, supermarkets and/or drugstores, but during 2023 transferred their consumption to discounters. "This phenomenon is neither temporary nor new, but reflects a consolidated trend. The hard discount channel has become the second most penetrated channel in Colombia, with an impressive 96% of households making purchases in this format during 2023," explains Camilo Escobar, Director of Customer Success for NielsenIQ Colombia. THE GROWTH OF HARD DISCOUNTERS According to Nielsen, the channel's growth has been exponential in the last decade, going from concentrating only 2% of mass consumption value spending in Colombian households in 2014 to representing a remarkable 25% in 2023. This expansion has had a significant impact on other formats, such as chain supermarkets and neighborhood stores, which are the most affected in the loss of spending within the country's households. "In summary, the Hard Discounters 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," said Escobar, noting that 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. Read more: Ignacio Gómez Escobar Consultant, Retail Advisor, Discounter Expert. : COLOMBIA - Hard discount stores grew 12.1% in volume in 2023 while other formats fell - Forbes Colombia (igomeze.blogspot.com)

Good value for money is consolidated as one of Aldi's attributes best perceived by consumers, according to data from Kantar Insights. Specifically, 23% of Spaniards rate the balance between quality and price of the chain's products very positively, along with the proximity of its stores (25%) and its low prices (22%). In this sense, the firm maintains long-term and trusting relationships with its suppliers and guarantees savings for households that opt for a purchase option based on own-brand products and 80% of national origin. During the last year, the company has acted as a containment dam in the face of the generalized price rise in the market, containing the increase in prices below the distribution average during the last year. According to internal data, at the end of 2023, Aldi was more than 2% below the 7.1% increase recorded in the sector. In addition, in 2024, Aldi is among the top two supermarket chains that consumers perceive as having the lowest prices in Spain, according to Kantar Insights. In this sense, the company has gained the loyalty of a consumer who is very concerned about price, quality and national origin: in the last three years, Aldi has increased the number of customers by 29% and there are now more than seven million who trust its supermarkets, according to Kantar Worldpanel. In terms of private label, Kantar Worldpanel notes that Aldi has contributed 10.3% to the volume growth of the private label over the last three years. The lower price of own-brand products is the main reason for this increase, according to 66% of consumers. Half of Spanish families also declare that they have increased their consumption thanks to the good value for money they offer. On the other hand, in relation to the origin of own-brand products, 70% Spaniards declare that they prioritise the purchase of own-brand products if they come from national suppliers. Read more: The three keys to Aldi's success in Spain (revistainforetail.com)

Discount Retail Chain Aldi UK has pledged “to cut more prices than ever before in 2024” as it doubles down on its commitment to never be beaten on price. The grocer said it will continue cutting prices “across a wide range of products wherever possible” throughout the rest of the year – beating the £380m invested in price cuts last year. Aldi UK and Ireland CEO Giles Hurley said: “We know that shoppers remain under pressure from the cost of living, which is why we remain laser focused on offering the lowest possible prices.” The German discounter has already invested over £125m to reduce prices on around 500 products since the start of the year, representing around a quarter of its range and around a third of its fruit and veg. Last month, Which? named Aldi the cheapest supermarket for February with a basket of goods costing over £20 less at the retailer than at the average traditional Big Four supermarket. Hurley added: “We are investing more than ever before in lowering prices, and we will continue to do whatever it takes to keep grocery prices as low as possible for the millions of customers that shop with us.” The grocer’s latest investment in price follows it unveiling plans to open 35 new stores across the UK this year. The openings come under its long-term target to launch 1,500 stores across the UK, with the supermarket set to invest £550m on expanding its UK footprint in 2024 alone. Last month Aldi unveiled its wish list of top priority locations to open stores across London, including Notting Hill, Chelsea and Richmond. While back in February, the company also confirmed it would be creating 5,500 new jobs this year, as it looks to “continue growing at speed throughout 2024”. Read more: Aldi CEO promises 'to do whatever it takes' to keep prices as low as possible - Retail Gazette

Discount Retail Chain Bara, owned by the Mexican retail giant FEMSA, aims to intensify competition with discounters Tiendas 3B and Neto by bolstering its discount store Bara in 2024 and 2025, expecting accelerated growth, as hard discount stores continue to make strides. “One of the strategies we are pursuing in proximity is Bara, an important component of the multiformat vertical. We had very strong goals in 2023, and our intention is to continue strengthening that business in 2024 and in the coming year,” said Francisco Camacho Beltrán, former corporate director, FEMSA. During discussions with analysts regarding their financial results, Camacho Beltrán emphasized the significance of the proprietary brand in their "hard discount" business, which has been performing well. In the past year alone, FEMSA opened 88 new Bara stores in Mexico, increasing from 271 units in 2022 to 359, marking a 32% growth in its "hard discount" format, like Tiendas 3B or Neto. FEMSA has hired a new director for this area, Claudia Sotelo, an expert in multiformat and discount stores, who has been working over the past few months to boost the potential of Bara for faster growth. In the fourth quarter of last year alone, total revenues from this business segment grew by 33.7% compared to the same period in 2022, driven by a 13.0% increase in same-store sales, reflecting robust performance in grocery, home hygiene, and convenience categories, primarily fueled by beverage sales. Tiendas 3B has recently gone public in the New York Stock Exchange (NYSE) and will open at least 12,000 additional units in Mexico, nearly six times the 2,288 branches it closed last year. In 2023, the company opened stores at a rate of one every 22 hours, leveraging data to identify communities with over 10,000 inhabitants where its 800-square-meter store model fits. Read more: FEMSA to Boost Bara Discount Stores to Rival Tiendas 3B, Neto (mexicobusiness.news)