Discount Retail Chain Lidl is in the process of entering the markets of Bosnia and Herzegovina, Montenegro, North Macedonia and Kosovo, following the roll-out of successful operations in Croatia, Slovenia and Serbia. Bosnia and Herzegovina In Bosnia and Herzegovina, Lidl has commenced construction of a large distribution centre in Lepenica, near Sarajevo, a key step before starting operations in that market. The 60,000-square-metre centre is located near a highway linking the cities of Sarajevo and Mostar. Over the past two years, the supermarket chain has been hiring workers and searching for locations throughout the country. The plan is to open stores in cities and municipalities in Bosnia and Herzegovina with over 30,000 inhabitants, with the first locations already secured in cities like Sarajevo and Bijeljina. Montenegro Although Lidl’s original plan was to commence operations in Montenegro by the end of 2023, this is now unlikely to happen, due to difficulties in finding the right store locations. According to local media reports, the discounter has so far managed to secure three locations in Montenegro: one in Nikšić, and two in Podgorica. North Macedonia Lidl registered a local subsidiary in North Macedonia two years ago and has since been scouring the country for potential store locations. The discounter recently announced that it is commencing the construction of its first store in Bitola, on one of two purchased plots, while another agreement was recently signed for the purchase of the Mr. Bricolage centre, set to be Lidl’s first store in North Macedonia, from Skopski Pazar. The discounter recently paid €5.3 million for a 17-hectare plot of land in Gornji Konjar, near Kumanovo, where it plans to build a logistics centre. A tentative date of 2026 has been unofficially mentioned for the opening of the first stores in North Macedonia. Kosovo In Kosovo, meanwhile, Lidl has commenced hiring staff members for its future stores, according to a post on the LinkedIn profile of the Kosovo-based unit of HR services provider the HeadHunter Group. Among the roles being advertised are those of property portfolio specialist, administrative assistant, civil engineer, property specialist, and HR administration specialist. Last year, the president of the Kosovo Chamber of Commerce, Berat Rukiqi, confirmed that Lidl plans to open stores in Kosovo, adding that this was “good news” for the local economy and producers, as it would allow for the export of local products to other Lidl markets. Read more: Discounter Lidl Set To Enter Four Balkan Markets | ESM Magazine

Shoppers in the UK have rated Aldi as the nation’s most popular supermarket, according to new data from YouGov. The poll revealed that the German discounter and Britain’s fourth-largest supermarket ranked ahead of its traditional Big Four rivals, as well as M&S and fellow discounter Lidl. On a basket of 39 everyday items, Aldi was £16.65 – or 25% – cheaper than the most expensive, Waitrose. It comes shortly after Aldi was named as the UK’s cheapest supermarket for the 15th consecutive month by Which?, with a basket full of shopping priced at £65.21. Communications director at Aldi, Richard Thornton, said: “Low prices never go out of fashion which is why Aldi is – and will continue to be – loved by so many. “Our unbeatable combination of high-quality products at low prices has helped us attract around a million new customers in the past year alone, but we’re not stopping there. Aldi will invest £1.4bn over the next two years to bring Aldi closer to even more households,” This week, Aldi announced that it is looking to recruit 3,000 new store workers ahead of the Christmas period, to help replenish stock and provide assistance to customers. Source: Grocery Gazette

Discount Retail Chain Aldi Nord's (German family owned) CEO, Torsten Hufnagel, wants to reach 6,000 European establishments in the next three years. Spain, France and Poland, the most likely destinations for the bulk of investment. German discounter Aldi Nord thinks big. After the "biggest restructuring in the company's history", as described by its CEO Torsten Hufnagel in April, the brand is now embarking on a project to open 700 new stores in Europe over the next three years. New structure Aldi Nord has made headlines twice over the past two weeks in Germany. In mid-September, the company created a separate company for its operations outside Germany, and on Monday said goodbye to the last member of the founding family, the Albrechts, as a result of a reshuffle of the board of directors. However, the new structure lays the foundation for a larger goal. Managing Director Torsten Hufanagel wants to reach 6,000 stores in Europe by 2026, which means opening 700 new stores within three years. The countries best positioned to lead the bulk of the new openings are Spain, France and Poland, according to sources in the Lebensmittel Zeitung newspaper. More investment in logistics, lower prices Hufnagel's project is not only ambitious. It is also unexpected. It should be remembered that Aldi has gone through serious economic difficulties during the inflationary period, to the point of taking exceptional measures such as the exit of Denmark, which reduced its number of stores in Europe to 5,300. It also abandoned its online store project in Spain and the rest of Europe. How will you finance the new expansion operation? According to a report by LZ, the funds will come from the Albrecht family. In addition, the German brand wants to make large investments in logistics to achieve new economies of scale. His obsession is to reduce unit prices, invest the extra profits in lower prices and continue to expand the brand. "It's about paying dividends to our consumers," say company sources according to the newspaper Retail Detail. Read more: Aldi wants to conquer Europe: it projects 700 new stores until 2026, much of it in Spain (ampproject.org)

Radhakishan Damani, one of the most astute investors and entrepreneurs, over the years, has surpassed many prominent Indian Billionaires like Ajay Piramal, Rahul Bajaj, and Anil Agarwal in terms of wealth. Damani is the founder Avenue Supermarts Limited, which runs the DMart hypermarket chain of stores. The businessman reached the pinnacles of success after he launched the IPO of his Supermarket Chain DMart in 2017. The company has grown to more than 300 stores of supermarkets and hypermarkets across the 14 states. The immense success of the model should be credited to Damani’s pioneering vision and business acumen. His unique, effective, and relentless execution led the company to be the toast of its investors. On the other hand, for the consumers, DMart is known for offering the best discounts and other potential competitors can’t match in terms of cost and value proposition. So, how does the retail company manage to give such huge discounts throughout the year? Well, the approach is clear. If the rental costs account for around three per cent of total turnover, the benefits will be higher in comparison to those operating at an EBITDA margin of 3 - 4 per cent. EBITDA refers to earnings before interest, taxes, depreciation, and amortisation and indicates the operating profit. Source: News 18 #smartdiscount #dmart #india #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

Dubai-based discounter Viva (owned by the Landmark Group) announced their first store opening in Oman. After rolling out the successful discount concept in the Emirates (> 75 stores), finally Viva crossed the border to enter the Oman market. Source: Viva #smartdiscount #viva #oman #uae #dubai #discount #discountfoodretail #discounter #foodretail #retail #drc #consultancy #discountretailconsulting #retailconsulting #consulting

Discount Retail Chain Lidl Belgium is simplifying its store concept in Belgium to ensure that all 310 stores eventually have the same design and layout, according to media reports. After years of modernisation and store upgrades, Lidl Belgium now wants to return to the so-called traditional 'no-frills' concept. The banner has to compete with the higher growth rate of its rival Aldi in the country, and changing the layout of its stores can be a good move. Lidl is implementing a similar project across the border, in Germany, where it has opted for a 'no-frills' concept, based on simple and sober interiors, closer to the hard discount model, with express promotions and more self-checkouts to attract price-conscious customers. 'Recognise A Lidl' "Lidl implements its own concept in each market. In Germany, the design is being adapted to the German market. The aim is for customers to recognise a Lidl when they enter. In concrete terms, you will encounter the bakery, fruit, and vegetable department first when you enter the store," says spokesperson for Lidl Belgium. She highlighted that the changes will not only make Lidl more distinguishable for customers, but also increase efficiency among the staff. "There are currently many different variants between our locations, which means there are many different operational tasks per store. By moving to one clear store concept across all stores - also in terms of logistics, transport, deliveries, etc. - it also becomes easier and more efficient for our staff," the Lidl spokesman added. Source: Het Laatste Nieuws

Discount Retail Chain Aldi UK (German family owned) has become the latest supermarket to offer staff body-worn cameras in a bid to deter shoplifters. Chief executive Giles Hurley said the move was being trialled in a handful of the supermarket’s stores as crime rates across its portfolio surged. “There’s an uptick in shoplifting across the industry and we’re not immune to that,” he said. With body cams, we currently have a trial which is underway in part of our business, exploring what benefits we can derive from that for our colleagues. “We have an absolutely fantastic team here at Aldi and we are very clear that they should expect a safe and secure working environment and it is therefore a priority for us.” Hurley said the cameras were among “a range of security measures in place”, which also include checking customers’ shopping bags at the checkouts, to respond to the rise in crime. “Our management teams are well attuned to monitoring those and tightening them when there are localised issues,” he said. “It’s something that we’re working on with and through the industry to try and drive improvements.” His comments come as Aldi reported its profits had rocketed 196% to £178.7m in the year to December 2022 thanks to “a new generation of savvy shoppers turning their back on traditional, full price supermarkets”. Tesco revealed at the start of the month that shop workers had been offered body cameras following an increase in violent attacks. Fellow grocer Morrisons has also launched a body-worn camera trial in 25 of its locations, with the possibility of rolling it out further, in response to the recent wave of crime. Read more: Aldi offers staff body-worn cameras amid shoplifting surge - Retail Gazette

While Belgium has seen some easing of overall inflation in recent months, dropping to 6.62% in February 2023, food inflation continues to remain at an elevated level, standing at 16.12% in February. The high inflation rates experienced over the past year have had a generally negative effect on Belgium's retail sector, which saw a 8.9% decrease in total retail trade volume in the year to January 2023, one of the highest year-on-year declines in Europe. Recently, the Belgian supermarket sector has been beset by strikes, chiefly aimed at retailer Delhaize's plans to introduce a franchise-based operating model in the country, but also addressing concerns over wages and working conditions. Here's an overview of the top ten supermarket retail chains in Belgium, according to their most recently-available full-year turnover. 1. Colruyt Turnover: €7.96 billion (2020) Market leader Colruyt operates several banners and brands in Belgium, including Bio-Planet, Colruyt, Cru, DreamBaby, Dreamland, Fiets!, OKay, OKay Compact, and SPAR. Founded in 1950, Colruyt had a turnover of €7.96 billion in 2020, and currently operates 528 stores. 2. Delhaize Turnover: €5.2 billion (2020) Part of the Ahold Delhaize group, Delhaize operates the AD Delhaize, Albert Heijn, Delhaize Supermarkt, Proxy Delhaize, and Shop&Go banners. Delhaize had an estimated turnover of €5.2 billion in 2020, and has a network of 797 stores as of this year. 3. Carrefour Turnover: €4.3 billion (2022) Carrefour's Belgian operation operates several banners, including Carrefour Express, Carrefour Hypermarket, and Carrefour Supermarket. The Belgian arm of Carrefour had a turnover of €4.3 billion in 2022, and operates an estimated 700 stores as of this year. 4. Aldi Turnover: €2.7 billion (2020) Discounter Aldi boasts a growing network of stores in Belgium, with 440 outlets in its network as of 2020. The Belgian arm of Aldi Nord reported an estimated turnover of €2.7 billion in 2020. 5. Lidl Turnover: €1.88 billion (2020) Lidl has had a presence in Belgium since 1995, in which time it has built up a network of 320 outlets (as of 2022). The turnover of its Belgian operation stood at €1.88 billion in 2020. 6. Spar Colruyt Turnover: €707 million (2020) Two different groups hold the licence for the SPAR brand in Belgium. The first of these, Retail Partners Colruyt Group, operates outlets under the Spar and Eurospar formats. It reported a turnover of €707 million in 2020 and operates 355 stores as of 2022. 7. Makro C&C (Metro) Turnover: €647 million (2021) Makro C&C is a wholesale operator that has stores under the Metro and Makro brands. The group, which has had a presence in Belgium since 1970, reported a turnover of €647 million in 2021, and operates 17 stores (as of 2022). 8. Intermarché Turnover: €497 million (2020) Part of France's Les Mousquetaires group, Intermarché operates under the banners Intermarché Contact and Intermarché Super. Intermarché Belgium had a turnover of €497 million in 2020, and operates 75 stores as of last year. 9. Spar Lambrechts Turnover: €185 million (2020) The second SPAR franchisee operating in Belgium, SPAR Lambrechts operates under the brands SPAR and SPAR Express. SPAR Lambrechts had a turnover of €185 million in 2020, and operates an estimated 110 stores as of last year. 10. Bio-Planet Turnover: €178 million (2021) Part of the Colruyt Group, Bio-Planet offers around 6,000 organic, eco-friendly and sustainable products, in both food and non-food. It had a turnover of €178 million in 2021. Other notable food retailers in Belgium include Dutch retailer Jumbo; Ubiway Retail, which operates stores under the brands Hello!, Hubiz, Press Shop, and Relay; Leader Price; and Louis Delhaize, which operates stores under the banners Cora, Delfood, Delitraiteur, Louis Delhaize, Match, and Smatch. Source: Retail-index

The Food Marketing Association reveals price isn't the only reason shoppers are buying more store brand products. In recent years inflation has been the main factor driving shoppers to choose private label products as they sought to save money and make ends meet. But as prices moderate, consumer appetite for private brands is expected to remain strong, according to a recent survey conducted by FMI - The Food Industry Association for its 2023 Power of Private Brands: What’s Ahead for Shoppers and Private Brands report. This year’s analysis from FMI reveals an acceleration in private brand buying habits. Nearly 7 in 10 (69%) grocery shoppers said they purchase store brands at least occasionally, with 46% purchasing private brands most or all of the time. Additionally, about 60% of shoppers said they are buying private brands “much more” or “somewhat more” in the past year, compared to just 26% for national brands. Overall, 90% of shoppers say they are likely to continue purchasing private brands should inflation or the price of groceries decrease, indicating the growing loyalty shoppers have for store brands. “Although inflationary pressures may have been the catalyst that prompted consumers to try more private brand products over the past few years, shoppers have clearly come to appreciate the quality and value that store brands offer,” said Doug Baker, vice president of Industry Relations with FMI. “The overwhelming majority of shoppers tell us they plan to continue purchasing private brands in the future, even as grocery prices normalize.” Baker added shoppers are motivated to purchase store brands because they like the quality and the taste of the products, not just because of the affordability and value private brands provide. “This growing trust and loyalty consumers have developed for private brands highlights how these products have really evolved to become an extension of a retailers’ brand and value proposition, which is reflected in the way that private brands are also playing a bigger role in how consumers decide where to shop for food,” he said. Price (68%) and good value (67%) continue to be the top reasons cited by shoppers for buying more private brand items. However, 65% of shoppers mentioned a reason other than price and value that motivate their private brand purchases. Of those, shoppers cited quality (30%), taste (26%), and meeting meal solutions needs (16%) as some of the factors driving their store brand purchasing decisions. Notably, more than half of those shoppers who said “quality” was a reason they purchased private brand products noted the store brand item was comparable to that of a national brand. Grocery shoppers also told FMI that private brands are just as good as name brands in a number of key areas. When asked which kind of brand is better, 59% of shoppers said that private and name brands were equal at providing detailed product information; 57% said they felt private brands were just as healthy as their manufacturer-brand equivalent; and 63% said the private brand was just as good for the planet as the national brand. Crucially, more than half (52%) said that the private brands were products they trusted as much as the manufacturer brand product. The Power of Private Brands 2023: What’s Ahead for Shoppers and Private Brands report is based on an exclusive, nationally representative survey of 1,039 U.S. grocery shoppers aged 18 or older. Source: Store Brands

Discount Retail Chain Lidl Poland, the second strongest grocer in Poland, now wants to claim price leadership for itself in order not to lose touch with industry leader Biedronka. Both in Germany and in neighboring Poland, food prices have risen sharply in recent months. Inflation in Poland decreased year-on-year in July this year and now stands at 10.8%, down from 2022.11% in June 5. Since the beginning of 2023, the prices of consumer products and services have risen by 5.5%. Here, too, people are increasingly reaching for and buying cheap products, such as private labels or private labels. The industry leader in Poland is Biedronka with its owner Jeronimo Martins. Biedronka is the largest retail chain with (at the end of the second quarter of 2022) 3,283 stores in over 1,100 cities, which has been present on the Polish market for 27 years. In 2021, Biedronka worked with over 1,000 Polish suppliers, 92% of which accounted for sales. Products in the network's offer. Jeronimo Martins Polska SA employs almost 80,000 people. The value of Jeronimo Martins Group's investments in Poland since 1995 is over PLN 14 billion (Polish zlotys, about EUR 30 billion). Lidl is polishing up its price image In Poland, the food discounter already had 2021 stores in 805. In 2022, the number of Lidl outlets even rose to 840. Even though Biedronka is still a long way ahead of Lidl, the German discounter now wants to attack more strongly. According to some surveys and price surveys by the market research agency ASM Sales Force, Lidl leads in prices and is ahead of Biedronka in the cheapest shopping cart. This is an important step for Lidl, as Biedronka had pointed out its price leadership in a large-scale advertising campaign just a few weeks ago. The competition for places 1 and 2 in Poland between Lidl and Biedronka has been going on for several years. Nevertheless, the gap between the Schwarz subsidiary and the Polish provider is still very high. According to the latest business data from 2021, Biedronka was able to record a turnover of approx. 15 billion euros, while Lidl recorded almost 6 billion euros. Last year, 2022, sales of the number one company grew by as much as 24.6 percent and things are also looking very positive for the current year. At the current distance, it will be difficult for LIDL to get even closer to Biedronka, as Lidl's expansion with new stores has also stalled somewhat. Only 20 new stores were opened by September, in contrast to the then plan of 50 new openings in Poland per year. Poland is an important market for Lidl For Lidl, Poland remains and is an important hub for the market in Central and Eastern Europe. After all, profit before taxes in the last financial year 2021/ 2022 (fiscal year always until February 28) amounted to approx. 328 million euros, which accounted for a very good share of profits in the region. In comparison, Biedronka was able to achieve a pre-tax profit of approximately 778 million euros, but with significantly higher sales. Now, through more targeted and strong advertising campaigns, they are trying to show that Lidl offers the best prices in Poland. Further attempts to successfully catch up with the industry leader remain to be seen, but Lidl has the necessary power!\ Source: Supermarket Inside

As of the end of 2023, Dali has more than 450 retail stores and 5 distribution centers around Metro Manila. The Asian Development Bank (ADB) said “hard discount” retailing keeps product prices low through high sales volume of a limited product range and lean operations. In a statement, the ADB said it signed a $15-million equity investment deal with Dali. The investment will support the grocery chain’s network of retail stores and distribution centers and cold chain infrastructure in the Philippines, which would create at least 4,300 new jobs, “nearly half of them for women.” “Almost half of households in the Philippines are moderately or severely food insecure, and rising inflation is making it more expensive for them to purchase essential household products,” said ADB director general for Private Sector Operations Suzanne Gaboury. “ADB’s support for Dali’s expansion will contribute to food security and food safety by ensuring essential products are available to consumers at affordable prices, in a hygienic environment, and by integrating local agricultural suppliers into the company’s supply chains,” said Gaboury. The ADB said Dali is the first company in the Philippines to focus on hard discount retailing, establishing stores mostly in rural and peri-urban communities instead of premium commercial centers in the cities. The bank said “hard discount” retailing keeps product prices low through high sales volume of a limited product range and lean operations. The Manila-based multilateral lender said the project will also finance off-grid rooftop solar panels for 200 stores and 5 distribution centers including green building certification for sample buildings and reducing at least 3,000 tons of carbon dioxide emissions by 2026. Source: GMA Integrated News #smartdiscount #dali #aldi #philippines #manila #discount #discountfoodretail #discounter #foodretail #retail #drc #consultancy #discountretailconsulting #retailconsulting #consulting #adb #swiss

Discount Variety Retail Chain MR. D.I.Y. (listed at XKLS: MRDIY) a leading home improvement retailer with the largest number of stores in Thailand, organizes a promotional campaign ‘MR. D.I.Y. Brand Sale’ featuring exclusive private label items under ‘MR. D.I.Y. Brand’. The campaign aims to emphasize the affordability of MR. D.I.Y. products align with the growing trend of private label products, which has been on the rise since the outbreak of the COVID-19 pandemic. Mr. Arnupharp Kongmalai, Vice President of the Marketing Department at MR. D.I.Y. Thailand, shared his insights on consumer trends and opportunities for their products “Consumer behaviour has noticeably changed when compared to the recent past. There is a growing inclination towards private label products, aligning with the demands of cost-conscious consumers seeking the best value at affordable prices. MR. D.I.Y. is, therefore, focused on delivering quality products at consistently low prices to provide a superior shopping experience for customers through our ‘Always Smart Choice’ concept. This not only meets consumers’ needs but also builds long-term relationships with the consumers through our brand.” Over the last few years, private label products (sometimes referred to as house brands) offered by large retailers and mall owners have gained popularity among consumers due to the wide range of products available at customer-friendly prices. They have become the top choice for budget-conscious customers, offering value for money while helping retail businesses generate more profits even in challenging times. In line with their aim to provide consumers with “The Everyday Store for Everyone” experience, MR. D.I.Y. has been dedicated to continuously enhancing its products continuously. This year, the company launches the ‘MR. D.I.Y. Brand Sale’ promotional campaign, a major initiative focused on offering exceptional value which includes up to 40% discount on MR. D.I.Y.'s best-selling products, such as the Scrub Brush and Brass Faucet, as well as a chance to join the ‘Shop and Show’ activity, features an iPhone 15 Pro giveaway, along with a credit card promotion in collaboration with CardX and SCB credit cards, where customers can enjoy a maximum of 15% cash back when making a minimum purchase of over 300 baht per receipt. Enjoy these special promotions from 01st October 2023 – 31st October 2023 at more than 600 MR. D.I.Y. stores across Thailand. MR. D.I.Y.'s private label brand has been consistently growing every year and currently accounts for 40% of the company’s sales volume. Additionally, more than 75% of customers are aware of MR. D.I.Y.’s private label brand reflects changing consumer preferences as more seek value-oriented shopping for quality products at low prices. This also indicates that the shopping trend for private label brands is not simply a temporary response to the challenging economy but a sustained preference. Retail businesses can leverage private label brands to build consumer trust and establish a successful foundation for the future. Read more: MR. D.I.Y. launches ‘MR. D.I.Y. Brand Sale’ campaign to boost the potential of its private label (nationthailand.com)