22-23 ноября Закрытый саммит RETAIL STRATEGIES CENTRAL ASIA 2023 в Ташкенте (retaildaysasia.com) On November 22nd and 23rd DRC will be hosted by My Retail Strategy at Retail Strategies Central Asia event in the capital city of Uzbekistan, Tashkent. In an era of constant changes in the retail, it is important to stay afloat and receive timely information from experts about new industry trends. The summit "Retail Strategies Central Asia: Leveraging Growth" is held in a closed format and is dedicated to strategic growth points of retail business models in Central Asia. The summit will bring together representatives of traditional and online retail companies, manufacturers of consumer goods, distributors, pharmaceutical retail, manufacturers of commercial equipment, IT companies and other organizations cooperating with retail, as well as investors and developers. The first day of the summit is held in a closed format only for owners, executives and top managers of companies and includes a panel discussion, as well as the experience and cases of retail companies in Central Asia, Russia and Europe. On the second day there will be a business breakfast and a round table, as well as practical workshops with the participation of colleagues from Europe. Commercial directors, category managers, heads of logistics and IT departments, as well as directors and managers of pricing departments are invited to participate in the workshops. #smartdiscount #retailstrategies #uzbekistan #tashkent #workshop #discount #discountfoodretail #discounter #foodretail #retail #drc #consultancy #discountretailconsulting #retailconsulting #consulting

Largest retailer of Russia, Magnit (owned by SC Tander and listed at the Moscow Exchange), closed an agreement with the largest retailer in the Far East, Samberi Group, to acquire a 33.01% stake with an option to buy out the remaining shares within five years. The Samberi Group also owns discount chain Blizkiy. The transaction will be implemented after obtaining the appropriate approval from the Federal Antimonopoly Service (FAS Russia) and fulfilling a number of other conditions agreed by the parties. The transaction is expected to close in the summer of 2024. Samberi will continue to develop under its own brands and under the management of the current management team. Representatives of Magnit will be involved in the strategic management of Samberi's business. Magnit expects that the transaction will allow for synergies in the field of procurement conditions, as well as the integration of best practices and technologies to improve the offer to customers, further evolve store formats and increase market share. The acquisition of Samberi will expand the geography of Magnit's business to all federal districts of Russia. The total number of regions of presence will be 71 regions. As a result of the transaction, Magnit's total sales area will exceed 10 million square meters, and the company will become the first retailer to reach this mark in domestic retail. "The purchase of Samberi will allow Magnit to gain access to the promising market of the Far East and immediately take a leading position here, and the partnership with the founders of the company will ensure harmonious cooperation without disrupting the current architecture of the business, which is optimally configured for local consumers. In turn, thanks to the implementation of synergies in the field of procurement, access to technologies and expertise of Magnit, Samberi will be able to increase the competitiveness of its offer for customers and receive a new impetus for development," said Andrey Bodrov, Director for Investment, Strategy and Business Development of the Magnit retail chain. Samberi is the largest retailer in the Far East in terms of the number of stores and revenue. The Samberi Group of Companies includes 291 stores, including 31 Samberi hypermarkets, 42 Samberi and Samberi Express supermarkets, as well as 82 Raz Dva minimarkets and 136 Blizkiy discounters. The total sales area is 211 thousand sq. m. Retail outlets are represented in more than 50 settlements of the Primorsky Territory, the Khabarovsk Territory, the Jewish Autonomous Region and the Amur Region. The retailer operates three distribution centers in Khabarovsk, one in Vladivostok and a cross-docking warehouse in Blagoveshchensk. The banners of the Samberi Group employ about 10,300 people. Подробнее на Retail.ru: https://www.retail.ru/news/magnit-stanet-vladeltsem-krupneyshey-torgovoy-seti-na-dalnem-vostoke-samberi/

Discount Retail Chain Action (owned by UK based PE 3i Group) wants to expand into Switzerland. In an interview, HSG Professor Thomas Rudolph explains what this means for local retailers and customers and what hurdles the discounter in Switzerland has to overcome. Cleaning products, cosmetics, household appliances, decorations, clothing, toys, snacks, the Dutch discounter Action already offers this product range in eleven countries. And at very low prices. Action now wants to be the twelfth country to conquer Switzerland. As the Handelsblatt "Konsider" wrote last week, the company has founded a subsidiary in Basel: Action Switzerland GmbH. It is not yet clear when the first Action store will open in Switzerland. Thomas Rudolph, professor of business administration at the HSG, already dares to predict what Switzerland can expect from the low-cost discounter. Thomas Rudolph is Professor of Marketing and International Trade Management and Director of the Institute of Trade Management at the University of St. Gallen (HSG). His research focuses on purchasing and consumer behavior, among other things. In the past, Rudolph has studied the impact of Lidl and Aldi's entry into the Swiss market. Thomas Rudolph, have you ever been to an Action store? Thomas Rudolph: Yes, abroad. This is also out of professional curiosity, as Action is already very successful abroad. What was your impression? I was surprised by the huge offer. These are primarily non-food products. But I also noticed the prices. With these, Action attracts customers abroad to its branches. Action is the lowest price range. It doesn't get any deeper than that, from the consumer's point of view. Of its 6000 products, about 1500 items cost only one euro. Nevertheless, the discounter still manages to generate a 10 percent return. This is remarkable and only a few companies manage to do so. That's why you can say that Action has a very successful retail concept. How can a company offer such prices and make a profit from it? You have to ask yourself where these products come from and under what circumstances they are produced. However, this alone does not explain the prices. Action has been around for 30 years. During this time, the company has constantly developed and optimized its processes. It mainly relies on purchases in very large quantities. Furthermore, the discounter spends significantly less money on staff than, for example, Migros or Coop, because it simply needs fewer staff. Why does Action need less staff? On the one hand, because non-food products require less "support". For example, there is no fresh food counter and the logistical effort is also lower for products that do not require refrigeration. On the other hand, the discounter saves on customer advice and the presentation of its products. The items end up in the store directly from the pallet. Action doesn't have to pay anyone to put the goods in the limelight or to design the shop window. Do you think Action will be successful with this concept in Switzerland? Customers will vote on this with their purchases. Of course, there are also people in this country who like to buy 1-franc products. However, studies have shown that Swiss consumers are more quality-conscious than those abroad. If a cheap item doesn't work, Swiss customers won't come back. It will therefore be a challenge for Action to adapt to Swiss needs. Is that also the reason why Action is only now trying to make an attempt in Switzerland? It's hard to say. Market entry abroad is always a high-risk business in all countries. 50 percent of expansion projects fail. However, Switzerland has a few other peculiarities that make it difficult to get started. Who would be? On the one hand, Switzerland is a very small country. In other countries, the sales potential is much greater, even though purchasing power is considered high in Switzerland. On the other hand, the three different language regions are important, which means that products and marketing have to be translated. What's more, Switzerland is expensive. Rents for retail space and personnel costs are significantly higher in Germany than abroad. There are also other peculiarities in relation to the products. Switzerland, for example, has different sockets than the rest of the EU, which you have to keep in mind when selling electronics. Can you give a few examples of brands that have failed to expand into Switzerland? There are countless examples: OVS, Carrefour, the Quelle Versand, which seemed to have made it for a short time, but had to withdraw after a few years. Or Burger King and McDonald's, which needed a second attempt. Well-known discounters that have managed to expand into Switzerland are Aldi and Lidl. How did they manage to do that? Unlike in the countries where they had already been successful before, Lidl and Aldi in Switzerland relied from the outset on a Swiss range of local products and marketing that focused on the "freshness" of their products rather than on their low prices. That was well received. However, Action as a non-food discounter will not be able to rely on it. Yes, that's why I'm curious to see how Action will succeed in convincing customers. However, because of inflation, the company has chosen a good time. The pressure to save money among the population is greater, and so is the interest in a discounter. If action prevails, which retailers need to be worried? Migros? Coop? Otto? This is not easy to predict because there is not yet a non-food discounter of this calibre in Switzerland. Probably, all retailers will feel it a little. Especially non-food shops and textile retailers. But that only after a few years. If, for example, customers notice that you can get a good shampoo for one franc at Action, their expectations of the other retailers increase. Is it therefore pleasing for customers that Action wants to come to Switzerland? Maybe, yes. But it's likely that the impact of action will be significantly less than many would assume based on the experience with Lidl and Aldi. The situation is different today than it was ten or 15 years ago. As a brick-and-mortar store, Action may serve a gap in the market, but numerous online providers have been supplying this market in Switzerland for a long time: AliExpress, Wish, Temu, to name just a few. The intensity of competition is very high, especially in terms of population size and density in Switzerland. We tend to have too many providers rather than too few. Read more: Action in Switzerland: What the new discounter means for customers (watson.ch)

Discount Retail Chain Biedronka's (owned by Portuguese Jeronimo Martin's) revenues increased with 21.7% until Q III to €15.8 Bn. In Q3 alone the growth was 17.4% to € 5.5Bn. LfL's sales increased by 8.9 per cent after nine months and by 12.8 per cent in the second quarter, according to Jeronimo Martins, the owner of the Biedronka chain. The Jeronimo Martins Group, the owner of the Biedronka and Colombian ARA discount stores, had a net profit of €202 million in the third quarter of 2023 compared to a profit of €157 million a year earlier, the company said in a report. Revenues increased by 22 percent to approximately 8 Bn euros in the period. EBITDA amounted to EUR 586 million, up 18% year on year. After 9 months of 2023, the Group's EBITDA increased by 18 percent y/y to EUR 1.6 billion with revenues of EUR 22.5 billion (an increase of 22.1 percent y/y). The net profit of the parent company amounted to EUR 558 million (an increase of 33.3% y/y). EBITDA margin after Q3 2023 fell from to 7.1% from to 7.3% a year earlier. The company said in a report that persistent cost-push inflation could continue to put pressure on its EBITDA margin. Biedronka's revenues are growing Biedronka's revenues increased after 3 quarters to EUR 15.8 billion, and in the third quarter it increased by 17.4% to EUR 5.17 billion. LFL sales increased by 17.8% percent after 12 months and increased by 12.8% versus the second quarter. As reported, the strong increase in sales resulted in an increase in EBITDA of 20.9% (+18.4% in local currency). Price investment and cost inflation reduced the EBITDA margin to 8.6% (8.8% after Q2022). The Jeronimo Martins Group's CAPEX after Q3 2023 amounted to EUR 790 million, it was compared to EUR 557 million a year earlier, the Biedronka expenditures reached EUR 344 million. How many new stores has Biedronka opened? The company maintained that this year's investment expenditures may be similar to last year's and may amount to approx. EUR 1 billion (of which approx. 45 per cent in Poland). In the first nine months of the year, Biedronka opened 92 stores (78 net openings) and remodeled 270 locations. At the end of September, the chain had 3,473 stores. Read more: 15,8 mld euro przychodów Biedronki po trzech kwartałatach (dlahandlu.pl)

Aldi and Lidl had together a market share of 1,5% in 1998 against a market share of 17,7% in 2023. Almost 12 times more and that within a period of 25 years. Change is the only constant in the UK grocery market, and it's fascinating to reflect on how it has evolved over the past 25 years. Names that once stood as cornerstones of food retailing, such as Safeway, Kwiksave, and Sommerfield, are now mere memories. In 1998, discount retailing was dominated by Kwiksave, with a 3.4% market share, and Aldi UK and Lidl GB were just beginning their journey with a combined share of 1.5%. The top four retailers held 65.5% of the market in 1998, and interestingly, not much has changed – they still maintain 65.9%. However, what has shifted is the fact that one of these top four is now a discounter! Online shopping, a relatively new concept in 1998, now commands 8.6% of total sales. Source: Kantar, IGD

Discount Retail Chain ALDI SOUTH now discarded plastic vegetable crates for customers in the campaign. Actually a very good story with the second life. This conserves the consumption of resources. These resources are also used in recycling. And why, for example, make garden chairs from these boxes? In addition, the quality of the plastic folding boxes on the consumer market has been successively reduced. The shrinkflation that is now being discussed has always existed in non-food when you have made input factors more expensive. A folding box with only 800g is ........ The plastic vegetable boxes of ALDI, which are owned by Aldi and part of a closed loop system, are tried and tested on a daily basis and are therefore a good buy. Will there soon be old shelves from TEGOMETALL or shopping cart from Wanzl Group? Or the good old ant of Jungheinrich AG? The boxes are made of ALDI not given away. New business areas are opening up for retailers.

Discount Retail Chain Lidl Netherland plans to supply all its 440 supermarkets in the Netherlands electrically by 2030. This makes the discounter the first supermarket chain to supply all stores emission-free. In the coming years, all trucks will be replaced by electric ones. These are charged on Lidl's DCs with electricity generated by solar panels. In 2015, the discount supermarket started a pilot with electric driving. Lidl hoped to be able to supply all supermarkets in Amsterdam completely emission-free by 2025. With the move, Lidl says it will go beyond the current laws and regulations regarding zero-emission city logistics, which sets requirements for transport in 30 to 40 cities. The supermarket chain also reports that the entire branch supply will be completely diesel-free in 2024. In addition to the current electric trucks, only biofuels will be used. Jumbo and Albert Heijn With the phasing out of existing trucks, Lidl says it is ahead of other supermarket chains in the Netherlands. However, other supermarkets have also taken steps. For example, Jumbo expanded its fleet with a fully electric truck and Albert Heijn delivers groceries in the center of Rotterdam with electric vans. The supply there is also electric. Read more: Lidl to supply stores electrically - RetailTrends

Lidl will supply all its branches electrically before 2030. With this, Lidl goes beyond the laws and regulations regarding Zero Emission city logistics that set requirements in the field of transport in approximately 30-40 cities. Lidl is the first supermarket to make this commitment. State Secretary for Infrastructure and Water Management Vivianne Heijnen (Sustainable Transport): "These plans show that large supermarket chains are also able to make their logistics planning far-reaching more sustainable. Not only by electrifying their fleet, but also by looking at smart solutions that save mileage. The government's ambitions are great. We see more and more good examples that show that these ambitions are also achievable." Future-proofing through collaboration. "Our starting point was what was possible to supply our branches electrically. In 2021, we already started with the requests to the network operators to increase the connections to our distribution centers so that the charging stations can be set up in such a way for heavy electric transport. We then provided insight into the availability of trucks on the one hand and the cost challenge on the other. Together with our transporters, we have put the dot on the horizon and are ready for the future", says a Lidl spokeman. In this way, Lidl creates clarity for its partners and does not wait for changes in legislation. Sustainable and efficient journeys As a cost-conscious organisation, transport at Lidl is designed in such a way that relatively short journeys are made from the local distribution centres to the branches. Freezing, refrigerated and fresh products are in one truck, so that as few trucks as possible go to the branches. On the way back, the truck takes all the waste and return flows with it so that no separate garbage trucks arrive at the branch. This is not only sustainable and efficient, but also increases the safety in the living environment of neighbor and customer. In the coming years, all trucks, including heavy transport, will be replaced by electric ones. Because they are quiet, in the future it will also be possible to supply traffic-free moments such as the evening. Fast chargers with self-generated 100% green electricity The trucks are charged at the Lidl distribution centres via (fast) charging stations. The electricity used for this comes from, among other things, solar panels that are located on the roofs of Lidl's branches, distribution centers or from the Haghorst solar farm, with which Lidl recently concluded a Power Purchase Agreement. Diesel-free transport by 2024 Lidl's entire branch supply will be completely diesel-free as early as 2024. In addition to the current electric vehicles, only biofuels such as Bio-LNG and HVO100 are used. Source: TTM

Discount Retail Chain Lidl Germany, owned by the German Schwarz Group, and based with its international head office in Bad Wimpfen, proclaims that vegan own private label brands will have the same price as their meat counterparts in the future. That's what's behind the price cut. The discounter Lidl, which is headquartered in Bad Wimpfen (Heilbronn district) in Germany, has reduced the prices of its vegan own brands by an average of around 20 percent, according to its own statements. The prices are to be linked to the comparable meat product. For Professor Carsten Demming, head of the "Food Management" program at the Baden-Württemberg Cooperative State University (DHBW) in Heilbronn, this is primarily due to clever marketing. This is because the market has double-digit growth rates and Lidl wants to grow as a manufacturer and retailer in this segment, according to Demming. The price overshadows the sustainability of meat substitutes In times of high inflation, the importance of price increases. This also overshadows the megatrend of sustainability. The timing of the price reduction is therefore ideal, according to the professor. The fact that Lidl now positions original meat products and meat substitutes right next to each other on the shelf will certainly lead to a strengthening of sales of the alternatives at the same price, says Demming. He also assumes that other supermarket chains and discounters will follow suit. Meat substitutes such as vegan bratwurst or paprika sausage are becoming cheaper. That's because Lidl is lowering the prices for its meat substitutes. Why is Lidl able to lower the prices of meat substitutes? At Lidl, the price reduction mainly affects its own products that the Schwarz Group manufactures itself. Lidl controls the entire value chain there and there are of course "certain buffers", according to Demming. Until now, meat substitutes have often been more expensive. On the one hand, VAT rates are often higher than for meat. On the other hand, there are established large companies in the meat industry that can produce very efficiently and in large quantities. Meat substitutes are often produced by start-ups, but they are growing. Demming assumes that in the future, meat substitutes can even be produced more cheaply than meat. What are meat substitutes made of? According to a study by the Albert Schweitzer Foundation, the most commonly used basic ingredients are soy (45 percent) and wheat (39 percent). Lupins (5 percent), milk (5 percent), peas (2.5 percent) and chicken eggs (2.5 percent) follow at a greater distance. In addition, there are other basic ingredients such as jackfruit, mushrooms, quorn and black beans. In order for the products to resemble meat, many additives are often needed. This usually makes meat substitutes a highly processed product. Are meat substitutes healthy? It is not possible to make a general statement as to whether meat or meat substitutes are healthier. This is because there is a wide range of compositions and degrees of processing. A detailed comparison can be found here, for example, from the Albert Schweitzer Foundation. As a rule, both substitutes and meat provide high-quality proteins. In terms of fat content, the alternatives even perform better: they contain less fat and hardly any saturated fatty acids. The salinity is rather critical in both cases. Read more: Baden-Württemberg: Warum Discounter Lidl die Preise seiner veganen Eigenmarken senkt | tagesschau.de

Discount Retail Chain Lidl GB (owned by the German Schwarz Group) is now the third largest supermarket in London after overtaking Asda and hitting a market share high of 9.1%. As well as experiencing the fastest growth out of all supermarkets in the city, it was also named fastest-growing supermarket in the UK as a whole. With more than double the market share of any other discount supermarket in the capital1, Lidl’s growth forms part of its £500 million investment into London, while reaffirming its unwavering commitment to ensuring that all Londoners have a Lidl store within easy reach. Unlike other supermarkets that run convenience models in city centres, which could be costing London households hundreds more a year, Lidl is committed to providing all its customers with access to good food at low prices, no matter where they live. In 2022, the discounter marked its expansion in London by opening nine new stores, including locations in East Acton, Kingston, and Upton Park, while also securing a further five sites in the city for future expansion, generating hundreds of new job opportunities in the process. Early next year, it’s set to open another store in East Ham and it has started construction at its Newbury Park and Bellingham sites, further contributing to local employment. Those working at Lidl receive the highest pay in the supermarket sector, with hourly wages within the M25 starting at £12.85, rising to £13.15, along with a competitive benefits package including colleague discount. Ryan McDonnell, Lidl GB CEO, said: “We have a clear commitment to providing shoppers with the very best value, and becoming the third-largest supermarket in London reinforces our dedication to ensuring that everyone can eat affordable, high quality food, no matter where they live. We know convenience plays a huge factor when choosing where to shop in the city, which is why we’re pushing on with plans to bring many more locations to the capital in the future.” Outlining its intentions to extend its great value offerings to even more households in the capital, the discounter has published a list of priority locations for new stores. Currently, Lidl boasts over 100 within London and the M25, with ambitious plans for more than 100, including areas such as Earls Court, Westminster, Kings Cross, and even Knightsbridge. The discounter has also doubled down on its plans to strengthen its warehouse infrastructure to increase capacity across the country. Just last month, it opened its £300m Regional Distribution Centre in Luton to service over 150 stores in and around the capital, further cementing its commitment to London. Read more: Lidl GB now the third largest supermarket in London after overtaking Asda and hitting market share high of 9.1% (retailtimes.co.uk)

Hypermarket retailer Lenta (listed at Moscow Exchange) has completed the acquisition of the Monetka food retail chain, which includes more than 2,100 discount-like stores located in the Urals and Western Siberia. The total retail area of the acquired assets is 606,000 square meters, and 100% of the retail space is leased. In addition, the perimeter of the transaction includes 5 distribution centers with a total area of 116 thousand square meters (67% of the area is owned) and more than 560 trucks. The amount of the transaction was not disclosed. The company stressed that Monetka's extensive presence in the Urals and Western Siberia will significantly strengthen Lenta's position in these regions. At the moment, Monetka employs more than 23,000 people. According to Alexei Mordashov, Chairman of the Board of Directors of Lenta, the deal gave the company "the opportunity to immediately acquire more than 2000, stores with an established customer base, qualified personnel and a recognizable brand." Vladimir Sorokin, CEO of Lenta, also noted that the company will focus on studying the best practices at Monetka, which it can further implement at Lenta. He stressed that the next step will be to combine procurement conditions and search for cross-synergies in logistics, IT and other operational processes, which will "improve the value proposition of both networks and increase business efficiency." The transaction has been approved by Lenta's Board of Directors. The Federal Antimonopoly Service of Russia (FAS) granted the petition for approval of the transaction with the simultaneous issuance of an order to carry out actions aimed at ensuring competition. Among other things, on the basis of this order, Lenta will fulfill its social obligations to set a maximum level of trade margins for certain trading positions in the Khanty-Mansiysk urban district for one year. A number of other conditions agreed upon by the parties have been met, and the transaction has been closed. It is expected that Monetka's business will continue to operate as a separate legal entity with the preservation of the main operational processes, and the stores will operate under the existing brand. The company will begin consolidating the acquired business in its financial statements from October 2023. Soutce: Подробнее на Retail.ru: https://www.retail.ru/news/lenta-priobrela-regionalnuyu-torgovuyu-set-monetka/

Low-cost discount non-food chain Pepco has reached 200 points of sale in Spain, after the opening of a store in Cordoba. In addition to these stores in the Spanish market, it also operates ten stores in Portugal. By end of 2023 the plan is operate 205 stores in Spain and 14 in Portugal. Pepco has opened more than 100 stores in just one year and hired 1,300 people, bringing its workforce on the peninsula to nearly 3,000 workers. Source: Inforetail