Discount Retail Chain DALI Philippines (owned by Switzerland-based DALI AG) has redefined the concept of affordability in retail, and in this article, we'll take a closer look at how they achieved this remarkable feat. When it comes to offering "acceptable" quality products at unbeatable prices. The Rise of Discount Stores Discount stores, strategically placed in residential neighbourhoods, have been gaining popularity among consumers seeking convenient and accessible shopping alternatives to the sprawling hypermarkets. Dali is at the forefront of this movement, pioneering a unique approach to hard discount retailing in the Philippines. By the end of 2022, Dali had already established over 250 retail stores and three distribution centers in the south of Metro Manila. Their approach focuses on setting up stores in rural and peri-urban communities instead of premium commercial centers in the cities. This shift keeps product prices low, thanks to high sales volume of a limited product range and lean operations. Efficiency is Key One key aspect of Dali's success in keeping prices low is their commitment to operational efficiency. They buy products in large volumes, spend minimally on advertising, and opt for small, cost-effective store locations. The interior of their stores may not be fancy, but they are consistently clean and well-organized. Customer-Centric Approach Dali Stores also prioritize their customers. They offer an unconditional return policy for products that don't meet customers' expectations, demonstrating their commitment to customer satisfaction over short-term profits. A Unique Shopping Experience Dali's approach is refreshingly different from traditional stores. Based on my observations, Dali stores have several unique features that contribute to their low prices: All of their stores have no security guards; instead, they rely on automatic doors to assist customers and use vaults to secure and store their store cash revenue. They employ less fancy product displays on shelves, with products still placed in pallets and boxes, saving on display costs. Dali stores have no baggers; customers are encouraged to pack their purchased groceries at the counter. They strictly implement a "bring your own bag" policy, reducing environmental impact, while providing paper bags at a cost. You won't find massive and intensive local promotional posters around the area; Dali relies on storefront posters to explicitly compare the prices of their private label brands versus mainstream branded products. Dali maintains a lean inventory, focusing on the most essential products, avoiding unnecessary overhead. They heavily utilize private label brands, further driving cost savings. Dali offers a selection of cheaper imported products for sale, providing consumers with cost-effective choices. Dali's approach focuses on delivering high quality at low prices while streamlining the shopping process. Their unique business model has made them a trailblazer in the world of hard discount retailing in the Philippines (and Southeast Asia, according to Nikkei). As Dali continues to grow and expand its reach, one can't help but appreciate their dedication to quality, affordability, and customer-centricity. In a world where prices often seem to climb, Dali shows that keeping them low is indeed an art. Read more: Consumer Chronicles: How DALI Keeps Prices Remarkably Low | LinkedIn

Discount Retail Chain Rema 1000 beats Netto with almost 10 per cent cheaper basket on 21 items, which Avisen Danmark has checked and bought for a meal plan with three meals consisting of pizza, lasagna and a wok dish with chicken. Overall, the basket costs DKK 287.34 in Rema 1000 compared to DKK 317.20 in Netto. In second place comes 365 discount with a basket of DKK 300.64, while Føtex sneaks in ahead of Netto with a basket of DKK 303.80. Thus, Salling Group's department store chain has for a while and in this price snapshot taken the lead from the discount chain in Denmark's largest grocery group. Few items determine the price test If you read the price check closely, despite marked differences in the price of the basket, there are many items that match each other in price. Only a few items fluctuate greatly in price between the chains. For example, basil costs DKK 9 in Rema 1000, while the price in Netto is DKK 15. Also, the pricing of roasted cashews also helps Rema 1000 achieve the test's cheapest basket, as it is DKK 10.99 against DKK 20 in Netto. Apart from the cheapest and most expensive chain, the price is close to DKK 100 per meal. Avisen Danmark had an ambition to buy 23 typical groceries in eight different store chains on 10 November 2023. The goal was to buy as cheaply as possible for the meal plan. However, two items had to be discontinued from the test as they were not in assortment in all chains. At the same time, there could be different quantities depending on the stores' assortment, what bons out at Rema 1000. Purchasing and Marketing Director Anders René Jensen, Rema 1000, explains to the media that the Norwegian-owned discount chain with franchise merchants does not try to sell more than customers need so that they can better avoid food waste. Read more: Discount match: Rema 1000 wins price test ahead of 365 discount | The grocery trade (dagligvarehandlen.dk)

Discount Retail Chain Aldi USA looked to make a big splash with inflation-battered consumers by introducing price cuts on everything the American shopper needs for the holiday table: potatoes, green beans, cranberries, butter and flour, among other items. Truthfully, though, Aldi has been making a big splash with U.S. consumers for a long, long time. Last year, Michael Hurd and Jessica Bojanowski proved their love for Aldi and one another, by getting married in the produce section of the company’s flagship location in Batavia, Ill., after spending many months “dating” by shopping together at the store. This past summer, more than 70,000 Aldi super-fans took part in the retailer’s annual Fan Favorites survey, declaring their love for 13 favorite Aldi products. U.S. consumers seeking relief from high grocery prices and seeking premium products not found anywhere else, have become obsessed with shopping the grocer, and in August, the company gave some love right back to its fans when it unveiled plans to acquire Jacksonville, Fla.-based Southeastern Grocers (SEG). The transaction, scheduled to close in the first half of 2024, includes approximately 400 Winn-Dixie and Harveys Supermarket stores throughout Alabama, Florida, Georgia, Louisiana and Mississippi, which means the fastest-growing grocer in the country just added more fuel to the rocket ship. Image Aldi shoppers flock for value-priced eggs and deals on other fresh foods. “Our acquisition of Winn-Dixie and Harveys Supermarket is a unique opportunity to accelerate our growth plans and bring us closer to our customers in the Southeast, a key market for us,” says Aldi CEO Jason Hart, one of several key senior Aldiexecutives speaking to Progressive Grocer, which chose the company as its 2023 Retailer of the Year. The transaction adds to the retailer’s organic growth across the country, according to Hart. “We’ve opened hundreds of stores over the past several years, with plans to open 120 new stores nationwide by the end of this year, bringing our total store count to over 2,400,” he adds. “This acquisition gives us speed to market with quality retail locations, great people and a solid core business in a fast-growing region of the country. Not only has the Southeast market experienced tremendous population growth, but it’s a region where we’ve already experienced strong customer demand for our stores. We see so much future upside with this acquisition and look forward to bringing more value to the customers, employees and communities we’ll now have the privilege of serving.” Of course, value retailers perform well during times of economic pain and uncertainty. But ALDI is growing faster than any other grocer in the United States by expanding its assortment of fresh food, remodeling stores so that they’re easier to shop, curating assortments with premium — and frequently private-brand — products, infusing sustainability efforts across the business, and maximizing operational efficiencies in ways that allow it to keep winning the hearts and minds of the U.S. shopper. Image Fastest-Growing Grocer In 2017, ALDI, with estimated annual sales of $19 billion, said that it would invest $3.4 billion to accelerate store openings, with a goal of growing from 1,700 locations to a 2,500-store footprint by 2022. The onset of the pandemic in 2020 put a kink in that plan, with many of those planned openings taking a backseat to getting product on shelves and expanding digital options for shoppers. In early 2022, the grocer revealed plans to open 150 new stores by the end of the year. While the retailer was able to open and remodel 139 locations last year, it will open more than 120 stores this year, more new openings than any other grocer in the country. ALDI is now the third-largest grocer in the United States by store count, with a current total of 2,400-plus stores. Aided by the SEG deal, ALDI has set its sights on establishing a dominant presence in the Sun Belt, a swath of the United States that has attracted scores of new residents since the pandemic. Hart notes that the company will convert “a significant amount” of Winn-Dixie and Harveys stores to the ALDI format over the course of several years, with a meaningful amount continuing to operate under their respective banners. Earlier this year ALDI, which has a direct-sourcing model, opened a regional headquarters and its 26th distribution center in Loxley, Ala., which will ultimately serve as many as 100 stores across the Gulf Coast. Historically, ALDI distribution centers have been designed to service 70 to 75 stores in a 150-to-200-mile radius. ALDI’s Fresh Finds The explanation for why shoppers find ALDI’s value proposition to be irresistible doesn’t actually start with prices, but with its stores. Over the past few years, the company has remodeled more than 1,100 stores to be more modern and easier to shop, with curated, 90% private-brand assortments featuring expanded fresh food such as produce, seafood, dairy and plant-based items. “Our new store design formula worked very well for us, and we don’t anticipate changing it dramatically,” observes Hart. “With that said, we’re always thinking about how we can make the shopping experience even better.” Shoppers seem to love ALDI’s typically 12,000-square-foot stores because they’re faster to navigate, and many have modern touches, such as self-checkout and electronic shelf labels, and offer a limited assortment (1,650-1,800 products on shelf, depending on the season, compared with 40,000 at a traditional grocer) that’s just right. Consumers can build a fancy charcuterie board or grill a Black Angus ribeye if they shop at ALDI, all while saving time and 40% off on a basket of groceries, compared with a traditional grocer. Shoppers feeling pained by the cost-of-living crisis are also making fewer trips to stores, shopping more private label products and turning their backs on supermarkets in favor of ALDI’s everyday low prices. “Probably our largest category in the store with the most growth, sales and loyalty from a customer standpoint is produce,” he says, adding that it has potential for even more growth. “We’ve also had tremendous success in fresh fish, which we weren’t even in six years ago. Our fresh Atlantic salmon is one of the highest-selling SKUs in the store. It’s fresh, never frozen. It’s shipped in daily for us, and has been a really exciting and pleasing area for us to be in.” In the rest of the store, Patton is seeing growth in premium items. “Maybe that’s counter-intuitive to the economic times,” he notes, adding: “I think people still want premium products. They want to shop them at ALDI. They want to make their charcuterie board; they want to make their dinner they saw on TikTok at home.” Image “Growth is so much more than the number of stores we operate. It’s about continuing to earn the business and trust of more and more customers in all the communities we serve,” says ALDI CEO Jason Hart. Patton says that the company’s research shows that “people are responding to the simplicity of what we do, of great products at great prices, and how easy it is to shop. “You know, we’re proud to not have a membership program,” he continues. “We’re proud to not have coupons and sales and points systems and all of those things. For the ALDI shopper, I think our great products, great prices, simplicity, good quality and on-trend products make us a competitive grocer. That’s really what the brand is all about.” The discounter also offers rotating seasonal items and flavors, and its popular treasure-hunt program, ALDI Finds. These limited-time specialty items range from unique foods to home goods and other unexpected items like workout equipment, furniture or décor. “We’ve actually expanded our seasonal program,” says Patton. “What we’re recognizing is customers really respond to that in our stores. In the summer, more grilling meats; in the winter, more roasts or pies; in the summer, more novelty ice creams and frozen dessert. I think that expansion of the seasonal range has really been one of the keys over the last couple of years to customers coming to us more during the key holidays.” Lean and Green As ALDI continues its rapid expansion across the United States, the retailer remains committed to becoming a leaner and greener company. “Efficiency is what we do best,” asserts Hart. “Through improved ordering systems, enhanced forecasting and supply chain capabilities, and international sourcing, we’re able to operate in a nimble way without raising prices or compromising on quality.” Hart attributes ALDI’s operational excellence to its global supplier network. “We’ve partnered with many of these suppliers for more than 30 years, who, like us, work hard to provide quality items at the lowest possible prices and share our vision to do so responsibly,” he notes. “With our global scale, we can create efficiencies to source customer favorites like our exclusive chocolate brand, Moser Roth, directly from Europe, offering customers quality world-class chocolate for less. Through our global network, we can more easily track trends, sales and competitive moves so shoppers get the very best products at the low prices they love.” According to Hart, this network also allows the company to react faster to emerging trends and get to market more quickly than competitors. Of course, sustainability is a driving force at ALDI, and many of the decisions the retailer makes are good for the planet and for the bottom line. The company has installed rooftop solar panels on nearly 200 stores and 14 distribution centers and counting, to help offset energy costs. In September, ALDI launched a new, premium wine collection under its Specially Selected label. Last year, ALDI released its first-ever “Corporate Responsibility Progress Report,” which outlined progress toward its community, environmental and other ESG goals. ALDI is the first major U.S. retailer to ban plastic bags, and the company is also working to reduce its use of plastic and increase the recyclability of its packaging. The other part of ALDI’s corporate sustainability push is focused on community, starting first and foremost with taking care of its employees. “We keep our engaged, loyal employee base by creating a workplace rooted in kindness, recognition and work-life balance, and investing in the development of our people,” says Atty McGrath, president at ALDI. According to McGrath, ALDI gives its employees real decision-making authority and the ability to make a difference in the fast-growing organization. This year, ALDI rolled out new offerings for employees, including parental and caregiver leave, earned wage access, employee assistance programs for mental and physical well-being, and scheduling optimization solutions. According to Jason Hart, no matter how much the expectations of employees, and customers, change, ALDI is “committed to changing with them.” He says: “To me, growth is so much more than the number of stores we operate. It’s about continuing to earn the business and trust of more and more customers in all the communities we serve.” Read more: ALDI Named Retailer of the Year | Progressive Grocer

Discount Variety Retail Chain Woolworth wants to expand strongly in Europe in the next few years. "The potential is huge. In the medium term, we see 5,000 Woolworth stores in Europe, more than 1,500 of them in Germany," said Woolworth's CEO and co-shareholder, Roman Heini (ex-Lidl USA and Aldi UK CEO), to the newspapers of the Funke media group. The discount chain already operates more than 630 stores in Germany. By the end of the 2023/24 financial year, there will be 20 stores in Poland and 8 stores in Austria. "There is still great potential for our business model in Southern and Eastern Europe." The German Woolworth GmbH, headquartered in Unna, owns the trademark rights to Woolworth for the whole of Europe, including Great Britain. "I see the discount market continuing to grow. We're just getting started," Heini said. He expects the non-food discount market to develop in a similar way to the food market. "In Europe, there is still no dominant player in the non-food and fashion sector. However, this market will continue to grow over the next 10 to 15 years and consolidate to a few providers. The Woolworth brand has the potential and opportunity to play a leading role." The Woolworth CEO deliberately does not focus on online retail: "I don't see the future of the discounter in the online business. The costs for shipping and returns are too high for that," Heini told the Funke newspapers. "The logistics costs would have to be added to the prices of the items. So they would cost more than in the store. The cost of the item is therefore disproportionate to the cost of transport." According to Heini, "there will be no online store at Woolworths, at least not for the next three to five years. We believe in brick-and-mortar retail." Read more: Woolworth plans thousands of new stores - but no online shop | Berliner Sonntagsblatt (berliner-sonntagsblatt.de)

Discount Retail Chain Aldi Poland wants to hire thousands of new employees and open more than 1,000 stores, which will be served by 6 modern logistics centres within the next 5 years. "Continuous development and customer and employee satisfaction are our motivation for the years to come," says Wojciech Łubieński, President of the Management Board of ALDI. The German chain entered the market in 2008, opening its stores in Głogów, Żory, Tarnowskie Góry, Poznań, Bielsko-Biała and Jelenia Góra, among others. Currently, the chain is present in every Polish province, in 195 cities and has over 280 stores, and will end 2023 with over 300 stores. By 2028, ALDI wants to have 650 stores and 1,000 by the decade. Aldi is betting on a new urban format It is worth noting that the chain focuses on the development of new formats 'ALDI City'. Stores in this format will soon open in Wrocław and in Marki near Warsaw. The format consists in the construction of a two-storey building, where there is a shop in one room and a parking lot for customers in the other. "The past 15 years have seen the evolution of the discount format, of which ALDI is the creator on a European scale. Today, it is difficult to define a uniform model in Europe, more and more depends on local conditions," says Wojciech Łubieński. Milestones in our Polish history were the introduction of the ANIKO store design concept at ALDI, which was positively received by customers, as well as the latest 2.0 format. Further digitization, product range development and the construction of new stores and warehouses are ahead of us," adds the CEO of ALDI Poland. When the ALDI brand entered the Polish market, the number of employees was approx. 300 people. In 2011, it was twice as much. The largest increase in the number of employees was recorded in 2015-2017 and 2021-2022. Today, ALDI's team in Poland consists of more than 4,600 employees, almost 80% of whom are women. The chain hires about 800 new employees annually. At the beginning of 2008, the permanent assortment consisted of about 650 items. Today, more than 2,000 items are available in permanent ALDI stores, as well as more than 1,500 food and industrial items as part of weekly themed campaigns. About 65% of them are private label products. The chain also has its own brands in the non-food assortment, with a total of 27 brands. Over the next few years, own-brand products are expected to account for around 80% of ALDI's regular product range. Private labels are number one Wojciech Łubieński, CEO of ALDI Poland, says that the chain is working on the development of its private label portfolio. "It is worth noting that at ALDI, we strongly support simplicity, which is expressed not only in the way we think and act, but above all in providing a simple, comfortable shopping experience, carefully and selectively selected assortment, high-quality own-brand products and low prices. This is our main goal, which we are striving to achieve successively and with great commitment from all teams," says Wojciech Łubieński, President of the Management Board of ALDI in Poland. The region where the most shops are located is the south of Polish Silesian and Lower Silesian Voivodeships. Over the past two years, ALDI has opened more than 100 new stores. Expansion is a priority for ALDI, with the chain planning to have 650 stores across Poland in the five-year perspective and over a thousand stores in the ten-year period. For 14 years, the distribution centre in Chorzów served all stores. In September 2022, the chain opened a new warehouse located in Lisi Ogon near Bydgoszcz. The opening of the second ALDI warehouse was a natural result of the intensive expansion of the chain throughout Poland. In the next two years, it will open its third distribution centre, this time located in the Mazowieckie Voivodeship. The discounter is also working on a new cash register system. This year, ALDI has invested in AI artificial intelligence for automating orders in stores and warehouses, as part of its digital transformation. On the occasion of its 15th anniversary, the chain has prepared a catalogue dedicated to private labels, which includes the products most often chosen by customers during everyday shopping. The catalogue includes over 50 products, including the most popular Milk Chocolate with Whole Nuts by Chateau, Tandil laundry detergents, cold cuts by Wędliniarnia and many others. ALDI Poland is part of an international group with 110 years of tradition. Today, the ALDI North Group has 62 regional companies, 1,866 products in all markets, almost 5,300 stores in all countries, more than 92,000 employees and an 85% share of private labels in the product range. Read more: Aldi's plans in Poland: a new checkout system and recruitment of thousands of new employees (dlahandlu.pl)

Discount Retail Chain Lidl Spain (owned by the German Schwarz Group) opens its first store in the Madrid district of Villaverde. Located at Calle Santa Petronila, it will have more than 2,000 square meters of sales space. In this way, the store becomes the one with the largest sales areas of the company in Spain. With an investment of more than 4 million euros for its construction and equipment, its opening also means the creation of 38 direct jobs. It also has a car park with 70 spaces. The Community of Madrid is a strategic point in the company's expansion. In this regard, Lidl has added four new stores in 2023. In addition to this store in Villaverde, it has opened one in Alcalá de Henares, another in Madrid Capital (Calle Peña Gorbea) and the most recent one in the Hortaleza district. In 2022, after an investment of 35 million euros and the creation of 120 jobs, the company added six points of sale in the region: one in Móstoles, four in Madrid and another in Galapagar. In total, it has a network of 80 supermarkets in the Community of Madrid as well as two warehouses, one in Alcalá de Henares and the other in Pinto, totalling an area of 90,000 square metres. The company plans to build a third warehouse in Parla, on a plot of 150,000 square metres and after an investment of euro 85 million. Roger Lozano, Lidl's expansion and real estate manager in the Community of Madrid, says: "This store is a milestone for the company in the region, as it is the first store in the district. But it is also the largest in Spain with a sales room of almost 2,100 meters and enters the top five at European level in terms of sales room area. It has been a commitment by the company, as we have been doing for years, to the region, where we have many plans for the future and we are already planning new openings for next year." Lidl already employs more than 2,400 people and buys more than €370 million worth of product annually from around 90 suppliers in the region. Thanks to its activity, Lidl's impact in the Community of Madrid is already around 710 million euros per year contributed to GDP (0.33% of the total) and exceeds the 15,300 direct, indirect and induced jobs generated (0.49% of the total), according to PwC data. 2,000 M2 SALES ROOM The new point of sale will house a wide variety of fresh products (fruit and vegetables, meat and fish, freshly baked bread and pastries, etc.) and fridge, packaged dry products, beverages, cosmetics, personal hygiene, cleaning and bazaar items. To this must be added more and more regional references, actions such as its themed weeks of international food and, at this time of year, its Christmas assortment of the Deluxe brand. At the same time, this new point of sale has been built under strict sustainability standards and incorporates several energy efficiency measures such as charging points for electric vehicles, LED lighting by detection, taps with buttons or home automation climate. Read more: Lidl inaugurates its store in Madrid with the largest sales room in Spain - Noticias y Actualidad Retail (justretail.news)

Discount Variety Retail Chain B&M has increased its full-year profit outlook after posting a strong uplift in first-half sales and profit. In the 26 weeks to 23 September, group revenue climbed by 10.4% to £2.549 billion while group adjusted EBITDA rose to £269 million from £232 million a year earlier. The group said all of its divisions traded well in the period with B&M UK increasing its sales by 8.1% and Heron Foods by 17%. Meanwhile, sales at the B&M fascia in France surged by 26.1%. B&M opened 28 gross new stores across the group, including 13 for B&M UK, 10 for Heron Foods, and five for B&M France. It is planning to launch 125 B&M stores in the UK over the next three years which means it is now aiming for a total of 1,200 sites compared to a previous target of 950. Giving an update on more recent trading, the group said the first six weeks of the Golden Quarter had seen B&M UK’s like-for-like sales grow by 1.6%. It now expects its full year adjusted EBITDA to be in the range of £620 million to £630 million. This compares to £573 million in the prior year. Alex Russo, chief executive of B&M, said: “I am delighted that many of our existing shareholders have been with us since our IPO and continue to see our long-term growth potential. “With our new store number guidance (of not less than 1,200 B&M UK stores) and continued LFL growth, we have the runway to at least double our size in the UK in the medium term, while France also offers sizeable long-term potential.” Read more: B&M raises profit guidance as it announces store expansion plans | Retail Bulletin (theretailbulletin.com)

Discount retailers have been hesitant to launch food e-commerce for a long time. Aldi could open up a whole new target group for this business. So far there is no large discounter that delivers groceries to its customers. Lidl and Aldi are only testing delivery in a few countries such as the USA, Great Britain or Switzerland, but there they use partners such as Doordash or Instacart for delivery. All the more remarkable is Aldi Süd's current push to test a completely self-organized delivery service in Germany. Even if it is initially limited to three cities and it is still completely unclear whether the service will be rolled out widely, all of the competition will be watching with fear. This doesn't just apply to the prices that Rewe and Edeka base themselves on, or to the design of the markets. Even if Aldi introduces a new service, the competition cannot simply ignore it. A delivery service from Aldi would also come at exactly the right time. The start-ups have paved the way, and many consumers have acquired a taste for having groceries delivered to their homes. What was previously unthinkable for many people is increasingly becoming a matter of course. But many of the new providers are now weakening. Anyone who now has the financial strength to set up a well-thought-out service no longer faces too much competition. Aldi could offer seniors real added value In addition, an Aldi delivery service could attract a whole new target group. Start-ups like Gorillas or Flink are aimed more at hipsters in big cities who want to quickly grab a bag of chips and a can of energy drink for their Netflix evening. This is a clientele that neither reliably orders regularly nor spends a lot of money. And they are customers who need to be constantly wooed with discounts and marketing promotions. Aldi, on the other hand, is a brand that everyone knows and that broad sections of the population already trust. The retailer could even attract seniors as customers for a delivery service who find it difficult to carry their purchases home from the store. This customer group is also likely to be willing to pay a corresponding delivery fee because the service offers them real added value. This means that demographic change could play into the hands of the discounter Aldi. More and more older people are using cell phones as a natural means of communication. If Aldi manages to offer an app that is intuitive to use and doesn't create any hurdles for older users, it could be a success story. Read more: Aldi Süd: Der Lieferdienst „Mein Aldi“ kommt genau zur richtigen Zeit (handelsblatt.com)

Discount Retail Chain Aldi Belgium (German family owned) wants to equip its store car parks with at least two EV charging points for electric cars by the end of next year. All in all, there are 900 EV charging points supplied by PLUON, more than half of which are fast chargers. Earlier, Delhaize and the Colruyt group also announced the roll-out of charging stations. By 2025, it will be mandatory in Flanders to install charging stations if a car park has more than 20 spaces. In the case of new construction, it already applies from 10 parking spaces.

Discount Retail Chain Aldi UK has announced that it will no longer use plastic packaging for its own-label four-packs of beer and cider. The plastic shrink wrap and rings that had previously been used to hold the cans together have been replaced with a cardboard alternative. Aldi estimates that the switch will remove some 95 tonnes of plastic packaging per year. The plastic rings/yokes often used to package multipacks of cans have received a huge amount of negative publicity in recent years, especially due to the problems they cause marine wildlife, with animals becoming strangled by the plastic. The plastic also does not biodegrade, meaning that it remains within this ecosystems for an indefinite amount of time. UNESCO estimates that 8-10 million tonnes of plastic end up in the ocean each year. Luke Emery, plastics and packaging director at Aldi, said of the change: “Minimising plastic waste is important to both Aldi and our customers, and we are always looking for ways to adapt our packaging. Moving our beer and cider to card packaging is another step in our fight against unwanted plastic.” A spokesperson for Aldi also revealed that while larger multipacks of beer and cider (cans and bottles) are available at certain times, these do not use plastic packaging. Read more: Aldi removes plastic packaging from beer and cider (thedrinksbusiness.com)

Discount Retail Chain Aldi Nord maintains its linear block wine presentation in carton boxes. This is makes it very characteristic, in the sense that it is recognizable at a glance. Instead of individual wine bottle presentation, which is most common also at other discount retailers in Germany, the linear block presentation in a carton of 6 of bottles of the same wine, as a single reference. At the shelf stock can be held by positioning two or more boxes behind or on top of each other. Obviously, such this solution is suitable for retailers who: has a small number of SKU references, have a small sales area have own private label products to create an equal box design. The result is maximum rational and efficiency in the category. Evidently, Aldi Nord has sacrificed a good part of its previous alcohol assortment in favour of this solution.

Discount Retail Chain Aldi USA (German family owned) has been growing at a rate of about 100 stores per year since the 2008 recession. In 2023, though, it has added an additional 120 stores and in 2024, with Aldi's acquisition of Winn-Dixie and Harvey's stores, it will grow by another 400 stores in the Southeastern U.S. alone. According to a report from dunnhumby, Aldi has gained control of 2.1% of the grocery retail market, just 0.3% less than Dollar General, which opened nearly 20 years before Aldi landed in U.S. markets. It's still far behind the top grocery chains in the United States: Walmart owns 18% of the market, Costco has 9%, and Kroger has 5%. But with the biggest and fastest growth rate of any grocery chain in the country for four consecutive years, Aldi is gaining on them and attributes its ability to scale up in the market quickly to its efficient, no-frills business model. "It's about simplicity, and it's about efficiency, and it's about a consistent experience all the time," Aldi President Dave Rinaldo told the Wall Street Journal. That no-frills approach has allowed the company to keep prices down for consumers, who are choosing the bottom line prices over name brands and traditional retail marketing tactics like inflating bags of chips to make them seem fuller. Aldi avoids these psychological tricks in favor of fitting more stock on shelves, meaning less restocking and fewer restockers. The lower operating costs make it much easier to open new stores and grow like crazy. How is Aldi growing so fast? Aldi's focus on bare-bones efficiency is all in the name of optimization and lower cost to the consumer. It's easy to staff with lower labor costs from shorter operating hours and a value-branded expectation of little in-aisle customer service; it's also easy to stock with its simple in-package displays. Plus, the stores are smaller and uncomplicated, so the cost of initial real estate investment, utilities, and upkeep is lower than other stores. That efficiency is what gives it an advantage over other stores. It takes a lot more resources to keep a 148,000-square-foot Walmart store running than it does to run a 22,000-square-foot Aldi. The typical supermarket carries about 31,000 products. Aldi, however, only stocks about 1,600 products, and most of them are private-label products with good margins at lower prices than name-brand items. Aldi doesn't even play music in its stores, so it doesn't have to pay licensing fees. With all of these efficiencies that make Aldi stand out among grocery chains, it's able to offer its products at a much cheaper cost to the consumer than the national average. And in times when inflation and the cost of living are putting pressure on shoppers, Aldi's brand thrives not just among low-income shoppers but among households earning $100,000 annually and above. In 2022 alone, Aldi claimed that it acquired 9.4 million new customers. Going into 2024, there's no sign of slowing down. Read more: https://www.thedailymeal.com/1435350/aldi-no-frills-dominate-market/