The by DRC co-developed discount concept B1 (part of Magnit Group of Companies) has already opened their 55th store. The discounter chain plans to accelerate the pace of expansion and go beyond Moscow region. B1 operates according to the EDLP model (low prices every day without promotions), offering customers goods at affordable prices through deep optimization of business processes at the stores and in their logistics. The format aims for consumers of all income levels. The average sales area of the B1 stores is about 350 square meters, the assortment is about 1 thousand items which cover the key needs of the customers. A special feature of the assortment is an expanded offer of fresh fruits & vegetables, fresh category goods, baked goods (own production), as well weighted goods, like confectionery, nuts and dried fruits, cereals, frozen vegetables & fruits, fish products, etc. Another distinctive feature of B1 hard discounters is the use of modern technologies. For example, each store is equipped with self-service check-outs in addition to the usual cash registers. Magnit launched the hard discounter format in February 2023. In October, the first B1 distribution center was opened. In December, the chain launched its own loyalty program. Due to the peculiarities of the format, the mechanics that B1 uses to increase the loyalty of its customers differ from the usual ones operating in most chains. Also in December, the first private label products appeared on the shelves of B1 stores. The chain will continue to launch new own brands in various product categories and plans to increase the share of private labels up to 50% in the assortment structure in the future. "In less than a year since the launch of the B1 hard discounter format, we have opened 55 stores in Moscow and the Moscow region, and launched the chain's first distribution center", says CEO, Anzhela Ryabova. "We have tested many hypotheses in the field of commercial processes and locations, made mistakes, corrected them, and now we are ready to move on". "In 2024, we plan to open several hundred new stores and enter new regions," said Angela Ryabova. Source: Retail.ru: https://www.retail.ru/news/set-zhestkikh-diskaunterov-b1-uvelichila-kolichestvo-magazinov-do-55-15-yanvarya-2024-236634/

Discount Retail Chain Lidl attacked head-on in an advertisement on social networks the leader of food distribution in France E.Leclerc Friday, accusing it of "comparing the incomparable" to present itself as the best brand on the price. Lidl, which has benefited much less than E.Leclerc from the concern of the French about the soaring price of their groceries, pointed to a comparison between its cereals and those of its competitor's entry-level range. Less expensive, E. coli cereals. Leclerc contains, according to Lidl, "49% less wheat and 40% less cocoa" than its own cereals. And the discounter says it is "ready to do anything to offer you the best prices but not to make you swallow anything". 'Levels (of aggressiveness) never seen before' For retail sector expert Olivier Dauvers, this is a "new episode in the advertising battle between Lidl and Leclerc", which "reaches levels (of aggressiveness) never seen before". It takes place in a context of strong competition between distributors, exacerbated by inflation, which has increased consumers' interest in low prices, real or perceived as such. The independent group E.Leclerc, leader in the sector with nearly a quarter of the market, benefited from an impressive gain in market share in 2023. Among the arguments deployed to try to convince new customers, distributors use comparative advertising with variable methodologies (local or national comparison, on all or part of the assortment, etc.) allowing them to show that they are cheaper than the competition. On BFMTV/RMC on Thursday, the president of Lidl France Michel Biero had said that E. Leclerc, who "launched these comparators, has taken a step" that he had "never taken before", by comparing "private label products with first prices, even though they are not comparable products" from a quality point of view, according to him. Read more: In an advertisement, the discounter Lidl attacks E.Leclerc over its price comparison method (20minutes.fr)

Discount Retail Chain Tiendas 3B, owned by Anthony Hatoum and Quilvest Capital Partners, has picked a trio of Wall Street banks for a potential initial public offering in the US, according to people with knowledge of the matter. The company is working with JPMorgan Chase & Co., Morgan Stanley and Bank of America Corp. on a potential listing as soon as in the first half of the year, said the people, who asked not to be named because the information isn’t public. No final decision has been made and plans could still fall apart, they added. Tiendas 3B didn’t reply to messages seeking comment. Representatives for the banks declined to comment. Despite a drought of IPOs since 2018, Mexico equity sales have rebounded thanks largely to follow-on offerings by industrial property firms taking advantage of last year’s factory boom. The so-called nearshoring trend has also created jobs, which combined with increasing government cash aid programs and higher salaries has driven higher consumption and growth in Latin America’s No. 2 economy. Mexico City-based Tiendas 3B was founded by Anthony Hatoum, a Lebanese-American who moved to the Latin American country about two decades ago. It currently operates over 1,500 stores across about a dozen states in Mexico. Following the business model of German discount chain Aldi, 3B stocks a limited variety of products ranging from snacks and pet food to cleaning products and diapers at competitive costs. The 3B stands for “bueno, bonito y barato,” or “good, pretty and cheap.” One of Tiendas 3B’s early backers was Quilvest Capital Partners, a private-equity fund owned by the Bemberg family, which founded the beermaker Quilmes. Read more: Mexico Retailer Tiendas 3B Taps Wall Street Banks for US IPO (yahoo.com)

Two pan-European retailers have shaken-up retail competition in Italy over the past five years, their names are discount grocery retail chains Aldi and discount variety retail chain Action. Aldi announced plans to build stores in Northern Italy back in 2017 and then began building in earnest in 2018. Today the group, Aldi South, has more than 150 stores, primarily in Alpine region of Italy. Action said very little but began opening stores at the end of 2021, with the bulk of their 70 stores opening in 2022 or 2023. Unlike Aldi, they have moved swiftly into Central Italy and already have 9 stores in Rome. Still, most of Action’s stores are also in the Alpine region of Italy. Most A-Brand suppliers have not ‘reacted’ to the introduction of these two concepts, especially not at the European Strategic level, for a variety of reasons. Firstly, buying alliances and inflation have become huge topics for most brands. Secondly, no single discounter in Italy has more than 10% grocery market share, so Italy is often classified as a “low discounter share market” when viewed at a pan-European level. Also, Italy is not an “important” market for Europe’s three largest grocery discounters Lidl (Schwarz Group), Penny (Rewe Group), and the aforementioned Aldi who has only just begun investing in Italy, and only then, in a very concentrated corner of the country. Likewise, most mainstream grocery operators in Italy have not fully reacted to the news that Aldi and Action are coming. Retailers such as Conad, SISA, Coop Italia, Esselunga, Selex have not copied their counterparts in other parts of Europe by running “Price Match” promotions or introducing huge amounts of first price private label to combat discounters. The combined impact,the lack of A-brand reaction and the lack of mainstream grocer reaction, would lead the casual observer to two conclusions. One, that Aldi and Action are unlikely to have a structural impact on Italy. Two, that the discount channel is unlikely to have a structural impact on Italy. The casual observer would be wrong. Aldi and Action are changing the Italian retail landscape AND the discount channel is poised to become the most important growth channel in Italy, certainly in 2024, and more likely for the next five years. Changing the Landscape When Aldi and Action announced plans to enter Italy, existing discounters reacted. They reacted in four areas. 1) Improved fresh – particularly in butchery/prepared foods, 2) Improved Digital – particularly in home delivery and loyalty rewards/communications, 3) Improved sourcing – particularly in food sourced from Italian manufacturers, and 4) Improvements in non-food – particularly in higher priced items such as white goods, brown goods, home electronics, and furniture. Italy is one of just a few markets where the domestic grocery discounters are more successful than the German discounters (Aldi, Lidl, Penny). In Italy, Eurospin, MD Discount, Dpiù, In’s Mercato, and Todi have had more success than Lidl and Penny, even though all of the chains began operating in Italy in the period between 1992-1995.  Aldi’s announcement that it would enter Italy was a wake-up call for all of the established discounters. Additionally, Covid-lockdowns, elevated levels of inflation, and growing immigration have provided rich soil for the discounters to grow, without worrying too much about what other retailers are doing, just sourcing decent quality fresh foods at below market prices and opening more stores. The result has been dramatic. The discount channel in Italy was below 12% share in 2015 and has surged above 20% in the present day. Retail Cities predicts share will reach 22% in 2025 and will cross 25% soon after, putting Italy in a special tier of European Grocery markets where discounters control one-third, or more, of grocery spending. Predicting the Future We often say ‘follow the money’ to predict the future in retail. There are two money trails to watch in the case of Italy’s growing list of food and non-food discounters. The first is capital expenditure – ie, how much money is allocated to build more stores, expand to more cities, and improve logistics. The second is advertising expense – ie, how many tv ads, billboard signs, bus-stop signs are paid for by discounters. A leisurely drive through the secondary roads of Italy reveals the future of discounters, all eleven mainstream discounters are building more stores, in more cities, and flooding the market with marketing. One question that often gets asked is, “Who is #1?”, followed quickly by, “Who will be #1?” The answers to these questions are less clear since you can answer that several ways and get different answers. In terms of market share, Eurospin is #1. In terms of “capacity” – number of workers, number of distribution centers – Lidl is #1. In terms of price image, Eurospin is number one but there are signs that Aldi is starting to make its reputation known. As of today, none of Italy’s discounters have hinted about exiting, selling, merging with others. However, if history is a guide, Italy has more discounters than it needs and mergers would be a normal remedy for this challenge. Preparing for 2024/2025 We recommend that leading suppliers move "Discounters in Italy" higher up in their list of strategic challenges for 2024. For more on the background behind this recommendation, please access the full report via one-off purchase or membership agreement. Retail Cities and DRC produce reports, custom presentations, webinars, and advisory projects for companies looking to stay ahead of change. Our most recent publication, “Grocery Discounter Wars in Northern Italy” is full of data, practical insights, category perspectives, and more. The above discussion was a snippet of the total report. All of our reports are available for enterprise purchase as a one-off or part of an annual membership. If this topic interests you, look out for our upcoming virtual workshop series on Grocery Discounters and more. We would love to see you join the conversation. Read more: Shaking up Retail Competition in Italy | LinkedIn

A new report from Placer.ai revealed that Aldi, Grocery Outlet Bargain Market, and Market Basket, each saw month-over-month growth in store visits. Across the prior 12 months, Aldi saw its largest growth in visits in January (about 7%) and September (about 10%). January and February (more than 20% and about 20% respectively) were the months where more shoppers entered the doors at Grocery Outlet, which saw monthly growth of more than 10% growth in nine months in 2023. Market Basket largest growth months were February and March (about 10% each) and the company saw month-over-month growth throughout the year. While the grocers were also opening new stores throughout 2024, Placer.ai’s report noted that the new locations did not cannibalize business from existing stores. On a year-over-year basis, foot traffic at Aldi grew 7.6%, Grocery Outlet was up 10.1% and Market Basket had growth of 3.8%. Year-over-year average visits were also up at Aldi (2.6%), Grocery Outlet (9%), and Market Basket (5%). Placer.ai said the increase in the number of unique visitors at each indicates the three chains expanded their respective shopper base in 2023. This increase is likely the result of consumers trading down, seeking more affordable retailers to meet their grocery needs. As consumers sought more affordable options for their grocery needs, a growing number of shoppers have also turned to private label products. While retailers across all channels reported sales growth of store brand items, the additional foot traffic at grocers such as Aldi that sell mainly private label products shows the growing trust shoppers have in these products and a changing mindset about the quality of private label items. “There is a clear and demonstrable shift to value throughout the retail landscape, and the ability to provide private label products aligns very well with what many consumers are seeking,” said Ethan Chernofsky, senior vice president of Marketing, Placer.ai. “But there is an added opportunity if consumers connect with these products and it offers the ability not just to satisfy a short term demand for value, but to become an actual reason that visitors choose a specific grocery chain.” Source: Placer.ai, StoreBrands

Discount Retail Chain Aldi North Group and Aldi South Group completes their roll-out with IFCO as the exclusive provider of RPCs and pooling services across Europe. Reusable Packaging Container (RPC) specialist Ifco completed the European roll-out of RPCs for Aldi Nord and Aldi Süd at the beginning of May 2023. Ifco is the exclusive provider of RPCs for fresh fruit and vegetables across the Aldi supply chain, meaning the discount retailers had “secured long-term higher logistics efficiency and even more sustainability”. ”From a logistics perspective, the flat design of folded Ifco RPCs optimises the capacity of shipments, which reduces the cost and carbon footprint of transporting empty RPCs, while the sturdy nature of the RPCs ensures a more stable and protective palletisation and transportation of fresh products,” Ifco outlined. Following the principles of the circular economy and to minimise the environmental impact of the switch, the discount retailers and Ifco worked together to ensure containers from the original Aldi Süd proprietary pool would not go to waste. Specifically, old containers were granulated and re-manufactured into new robust Ifco RPCs and incorporated in to the Ifco SmartCycle pooling system, closing the loop and avoiding waste. “Our priority was to ensure the switch to Ifco RPCs across the Aldi Nord and Aldi Süd European operations would be as sustainable as possible,” said Christoph Trixl, vice-president North and Central Europe at Ifco. “This complex project was a success thanks to the close and innovative collaboration between the teams and our shared objectives,” he explained. ”Together, we have achieved a very positive result. ”We’re proud of the customer-centric outcome, which sets sustainability benchmarks for circular models in packaging for the fresh grocery retail landscape.” Read more: Aldi Nord and Aldi Süd partner with Ifco | News | Fruitnet

As consumers focus on value in a rebounding yet still uncertain economic environment, it comes as no surprise that dollar stores, discounters, quick-serve restaurants and auto aftermarket services figure as the most aggressive expanding companies in 2024. A report released by capital markets resource Northmarq entitled “The Top 100: Tenant Expansion Trends” finds Dollar General committed to adding 800 new locations. Hard-charging O’Reilly Auto Part, which opened more than 180 new stores in 2023 has plans to open another 200 this year. And Ross Dress For Less continues on its long-term plan to erect 700 sites that will take its store count to 2,900. In the restaurant sector, McDonald's has embarked on a global expansion of 10,000 locations, 900 of which are targeted for the United States. As many as 315 more restaurants are in Chipotle’s plans for 2024. Burlington is set to open at least 32 new stores in 2024 on its way toward a goal of 500 additional locations within the next five years. Take 5 Oil Change, which invites customers to stay in their cars for a 10-minute service, recently opened nine new locations and has 300 more in its pipeline. It opened its 1,000th location in 2023. In the fitness and sporting goods sector, Planet Fitness opened 26 new clubs in 2023 as part of a global expansion plan involving 600 new locations and Academy Sports + Outdoors recently opened 14 stores on its way to 140 new locations within the next three years. Although it has eased off on U.S. expansion plans it announced several years ago, Aldi remains the fastest growing grocer with 45 new supermarkets in the works for 2024. Target has 30 new stores in its sights for 2024 and may be going ahead with more 150,000-sq-ft. concepts such as the one it opened in Katy, Texas, last year. Northmarq noted that Walmart,  meanwhile, has paused expansion while it focuses on remodeling existing stores with the goal of keeping shoppers in their stores longer. “While some companies are aggressively opening new locations and exploring innovative concepts and formats, others are taking a more cautious approach by evaluating their real estate footprints or even making the difficult decision to close store locations,” said Lanie Beck, Northmarq’s senior director of content and marketing research. Read more: 2024’s top expanders: Dollar stores, value apparel and automotive | Chain Store Age

Aldi Süd International Buying Asia has implemented a new initiative company officials said will enhance the sourcing and shipping of products from Asia to stores around the world. The grocer has gone live with the Intelligent Control Tower on the Digital Supply Chain Network from One Network Enterprises (ONE). According to ONE, access to the system will allow Aldi to improve its logistics operations by centralizing global shipping volume, increasing cost transparency, and improving its control over the movement of goods throughout the supply chain. This will also help Aldi improve its logistics and to develop a strategic ocean freight procurement strategy to better manage their global shipments of goods, company officials said. "We have selected the ONE Control Tower based on the depth of its capabilities and its ability to manage our freight end-to-end. We are confident that the solution can handle the complexities of our supply chain, starting with overall visibility and collaboration," says Fritz Walleczek, managing director of Aldi International Buying Asia. "This will greatly improve effectiveness in collaborating with our suppliers and being more responsive to our customers." ONE's Intelligent Control Tower features a range of functionality including combined planning and execution architecture along with an embedded AI assistant. With the ONE Control Tower and NEO Platform, Aldi is integrating its global network of logistics partners and suppliers around a single data model at the core of ONE's network of networks, enabling real-time collaboration across trading partners, workflows, and applications. Source: StoreBrands

Today (10.01.2024) Aldi announced two new industry-leading sustainability milestones, further supporting its ambition to be the most sustainable grocer in the country. First, Aldi met its goal to remove all plastic shopping bags by the end of 2023, becoming the first major U.S. retailer to eliminate plastic shopping bags from its more than 2,300 stores. A landmark moment for the industry, the decision to remove plastic shopping bags will prevent nearly 4,400 tons, or nearly nine million pounds of plastic, from going into circulation each year. Second, Aldi also unveiled a new industry-leading goal to transition to natural refrigerants across all U.S. stores before the end of 2035. As ALDI continues to grow, natural refrigerants will keep its products fresh while supporting a healthier planet. This new goal builds on the grocer’s use of environmentally friendly refrigerants in more than 600 stores, helping Aldi save nearly 60% of potential carbon emissions each year. “As one of America’s fastest-growing retailers, we take our responsibility to lead the industry in sustainability seriously, so our customers don't have to choose between shopping responsibly and saving money,” said Jason Hart, CEO, Aldi. “Eliminating plastic shopping bags from our stores and transitioning to environmentally friendly refrigerant systems not only help us protect the environment, but they also help reduce costs which we then pass on to our customers. These decisions help our customers feel good about shopping at Aldi and our employees feel proud to work here.” With its rapid growth across the country, Aldi will deploy a purchasing strategy that incorporates the best refrigerant solution for each region’s distinct climate - including both carbon dioxide and propane refrigerants, two ultra-low Global Warming Potential (GWP) refrigerants*. Beginning this year, Aldi will purchase environmentally friendly refrigerants for all new and remodeled stores and replace the current refrigerants in existing stores with refrigerants that have low global warming potential. In 2023, Aldi once again received the EPA’s GreenChill Store Certification Excellence recognition for its environmentally friendly refrigeration practices, achieving the most certifications at the platinum level of all participating U.S. grocery retailers. The EPA also awarded 109 Aldi stores in 17 states with GreenChill Store Re-Certification Excellence, recognizing these locations for five consecutive years of platinum level certifications. Through this program, GreenChill food retailers like Aldi maintain emissions rates that are approximately half the industry average, resulting in a significant benefit to the environment. “Aldi continually shows its commitment to the environment by minimizing refrigerant emissions at stores, including the 109 stores that have been recertified in 2023 for the fifth year in a row at the platinum level,” said Cindy Newberg, Stratospheric Protection Division Director at the EPA. “Aldi is leading the way with over 600 GreenChill certified stores, a GreenChill record!” These efforts build on the continued progress Aldi is making to protect the planet and invest in the causes that matter most to its shoppers and communities. Source: Aldi USA

Discount Variety Retail Chain OnePrice started operating in Vinnytsia, OnePrice owner Levan Paikidze told Forbes. The retailer also opened its 16th store in Georgia, with plans to open another 50 this year. Key Facts The opening of the first OnePrice Club in the hard-discounter format will take place in Vinnytsia. "The main assortment of the store is high-quality food and everyday goods at the lowest prices," said Levan Paikidze, owner of OnePrice. According to him, this niche in Ukraine is only developing. The OnePrice network has 77 stores in Ukraine in the dollar store format. The company also opened its 16th store in Georgia. "We launched the first one less than a year ago, on January 13, 2023, and this year we built a company from scratch that made the Georgian consumer fall in love with it," says Paikidze. OnePrice started international scaling from Georgia due to the lack of a large number of competitive players, said the owner of OnePrice. 70% of goods are domestic imports, the share of which is constantly growing, the remaining 30% are local suppliers, as well as suppliers from Ukraine. OnePrice Georgian stores operate in Tbilisi, Kutaisi, Gori, and Rustavi. "This year, it is planned to open 50 stores in Georgia," Paikidze said. OnePrice store in Georgia The company explained that lower prices, by an average of 15-20%, are achieved in "hard discounters" due to several principles: working directly with manufacturers; strict cost control and a minimum trade margin; there are products in the assortment, in the case of purchase of which the consumer does not need to overpay for the brand; low rent (warehouse with goods on pallets); the use of cross-docking, which involves unloading products directly from one vehicle to another in a cross-docking center to avoid storage costs. Retailer OnePrice started operating in the Ukrainian market in 2018 in Kyiv. The stores offer goods from China, as well as goods from Ukrainian manufacturers. In each of them, you can find more than 10,000 products. Read more: OnePrice відкриє дискаунтер – магазин низьких цін на продукти — Forbes.ua

Aldi has unveiled a new effort to transition to natural refrigerants across all of its U.S. stores by the end of 2035. According to the grocer, the new goal builds on its use of environmentally friendly refrigerants in more than 600 stores, helping Aldi save nearly 60% of potential carbon emissions each year. “As one of America’s fastest-growing retailers, we take our responsibility to lead the industry in sustainability seriously, so our customers don't have to choose between shopping responsibly and saving money,” said Jason Hart, CEO, Aldi. “Transitioning to environmentally friendly refrigerant systems not only help us protect the environment, but they also help reduce costs, which we then pass on to our customers.” With its rapid growth across the country, Aldi will deploy a purchasing strategy that incorporates the best refrigerant solution for each region’s distinct climate - including both carbon dioxide and propane refrigerants, two ultra-low Global Warming Potential (GWP) refrigerants. Beginning this year, Aldi will purchase environmentally friendly refrigerants for all new and remodeled stores and replace the current refrigerants in existing stores with refrigerants that have low global warming potential. In 2023, Aldi received the EPA’s GreenChill Store Certification Excellence recognition for its environmentally friendly refrigeration practices, achieving the most certifications at the platinum level of all participating U.S. grocery retailers. The EPA also awarded 109 Aldi stores in 17 states with GreenChill Store Re-Certification Excellence, recognizing these locations for five consecutive years of platinum level certifications. Through this program, GreenChill food retailers such as Aldi maintain emissions rates that are approximately half the industry average, resulting in a significant benefit to the environment. “Aldi continually shows its commitment to the environment by minimizing refrigerant emissions at stores, including the 109 stores that have been recertified in 2023 for the fifth year in a row at the platinum level,” said Cindy Newberg, director, Stratospheric Protection Division at the EPA. “Aldi is leading the way with more than 600 GreenChill certified stores, a GreenChill record.” News of Aldi’s expanding effort to use environmentally-friendly refrigerants followed another major sustainability milestone achieved by the company in 2023. The retailer met its goal to remove all plastic shopping bags by the end of this past year. The decision to remove plastic shopping bags will prevent nearly 4,400 tons, or nearly nine million pounds of plastic, from going into circulation each year, company officials said. Source: StoreBrands

Discount Retail Chain Dali Philippines, owned by a Swiss investment group, is carving out a significant presence in the retail landscape of the Philippines, shaking the foundations of local retail giants such as SM, Robinsons Retail, and Puregold. With a robust $15 million investment from the Asian Development Bank bolstering its network, Dali’s low-price, high-quality value proposition is resonating with a considerable section of the population. This is particularly critical in a nation where nearly half of the households grapple with food insecurity, and the minimum wage stands among the world’s lowest. Dali’s Rapid Expansion Ending the year 2022 with over 250 stores across the country, Dali's expansion is notable for its lean operations. The company operates with minimal staff and a focus on in-house brands, a strategy that allows for the maintenance of low costs. This approach is a game-changer in a market dominated by retail giants, making Dali a formidable challenger. Impact on Local Economy The company’s expansion also includes the development of distribution centers and a cold chain facility. This development is not only expected to streamline its operations but also to create at least 4,300 new jobs. This is a significant contribution to the local economy, especially at a time when job creation is paramount. Consumer Loyalty and Marketing Strategy Interestingly, Dali has managed to cultivate a loyal consumer base without resorting to traditional advertising. Instead, the company relies on word-of-mouth and a robust social media presence. This strategy, while unusual, has proven effective, lending credence to the retailer’s value proposition and furthering its reach among the populace. In conclusion, the Swiss retailer Dali is more than just a new entrant in the Philippine retail market. With its unique value proposition, backed by significant investment, lean operations, and an effective marketing strategy, it is a force that is challenging the status quo, contributing to the economy, and providing a viable retail alternative for the struggling households of the country. Read more: DALI: Swiss Retailer Disrupts Philippine Retail Landscape (bnnbreaking.com)