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  • UK: Lidl for now relaxed on losses and focuses on opportunities

    Discount Retail Chain Lidl UK (owned by the German Schwarz Group) brushed aside a 76 million pound ($95 million) annual loss, saying the business was squarely focused on the long-term opportunity. Lidl GB, established in 1994, said it had the "full support" of its German parent the Schwarz Group to open hundreds more stores. "As a privately-owned business we have the ability to be very agile and take those decisions which will have immediate benefits for customers, our colleagues and suppliers with the long-term benefits of the business in mind," CEO Ryan McDonnell told Reuters. "We're still very much in a phase as a brand in Britain of laying down the foundations to keep growing," he said in an interview, pointing to the opening of 50 new stores in its 2022/23 year, an investment of 100 million pounds to keep a lid on prices and 50 million pounds on increasing staff wages. Lidl GB and rival discounter Aldi UK are Britain's fastest growing grocers, according to market researcher Kantar. Their appeal has grown during the cost-of-living crisis as Britons have sought savings and, unlike their traditional rivals, they continue to open lots of new stores. Currently trading from over 960 stores with a 7.6% share of the UK grocery market, McDonnell said there was "no limit" to Lidl GB's expansion. "Inevitably, we're going to get into double-digit market share and beyond," he said. Aldi UK, last week raised its long-term target to 1,500 stores. But the discounters' profitability has not matched their stellar sales growth. Lidl GB's sales rose 18.8% to 9.3 billion pounds in the year to Feb. 28 as it welcomed an additional 1.5 million customers, but it sunk to a 76 million pound loss versus a 41 million pound profit in 2021/22. The loss reflected Lidl GB's investment and high inflation which led to an increase in costs "across the board". The discounters' performance has forced the traditional major players, including market leader Tesco and No. 2 Sainsbury's, to compete more aggressively and they have accepted a profit hit to keep prices down. Read more: Discounter Lidl GB relaxed on losses, focused on the opportunity (ampproject.org)

  • Germany: Lidl receives Red Dot award in Brand and Communication design 2023

    Discount Retail Chain Lidl Germany (owned by the German Schwarz Group) proves that the fresh food discounter can also do design. For its special editions for the company's 50th anniversary, Lidl will receive the prestigious "Red Dot Award" this year, which is one of the largest international design competitions. In the "Brands & Communication Design" discipline, Lidl's Branding and Packaging (BAP) department impressed the jury in the "Packaging Design" category with its product designs. Lidl is the first food retailer to receive an award for its outstandingly designed communication design and creative achievements. As part of the anniversary campaign, Lidl has been presenting numerous attractive birthday offers and events, three product packaging collections of Lidl's own brands in the eye-catching retro style of the 20s, 70s, 80s and 90s as well as an anniversary edition over a period of 90 weeks since May. Selected products such as Freeway drinks, crispy slices from Sondey, Solevita smoothie or Alesto nut mix are based on typical visual design elements from the individual decades and implemented with the Lidl colours and elements from the campaign signet. Red Dot Award The Red Dot Jury, consisting of twenty-four international experts, decides on the quality of the award submissions in a process lasting several days. The communication works are individually evaluated and evaluated in the area of "Communication Design" with regard to the criteria of originality and creativity of the idea, design quality and innovation of the form as well as comprehensibility and emotionality of the effect. As part of the Red Dot Gala, this year's winners of the competition will be honoured with the coveted quality seal in Berlin on 3 November 2023. Read more: Designwettbewerb: Lidl erhält "Red Dot Award" - Supermarkt Inside (supermarkt-inside.de)

  • UK: Lidl opens its largest global warehouse in Luton

    Discount Retail Chain Lidl UK (owned by the German Schwarz Group) as opened its largest warehouse in the world in Luton following a £300 million investment. Spanning 1.2 million square feet, the regional distribution centre in the Houghton Regis area of the town will be delivering over 9,400 pallets a day across 150 stores. This compares to its existing distribution centres, which service between approximately 60 to 80 stores. It is also the first Lidl GB warehouse to feature automation. The facility will create up to 1,500 jobs for the local community. The opening comes as Lidl doubles down on its commitment to further strengthen its infrastructure across the UK. In 2022, the supermarket opened over 50 new stores and launched a further 19 at the beginning of this year. Richard Taylor, chief development officer at Lidl GB, said: “The opening of this new RDC in Luton is a seminal moment for Lidl GB. Demand for Lidl has never been higher, and we are seeing an increasing number of people walk through our doors to make savings on every shop. “The fact that Lidl’s largest RDC in the world is here in Great Britain speaks for itself not only in terms of us needing to meet the growing demand from customers, but also in terms of our ambition to grow that demand in the future. “It is a spectacular state-of-the-art site that our team has worked incredibly hard on to get to where we are today. It has the capacity to service 150 stores, which is nearly triple the amount of some of our existing warehouses, demonstrating the true scale of our ambition and growth potential.” Jeremy Hunt, Chancellor of the Exchequer, said: “It’s fantastic to see Lidl investing in the UK and creating thousands more well-paid jobs. As our plan to halve inflation this year and grow the economy bears fruit, businesses can be confident that investing in the UK is the right decision.” In April, Lidl announced it was recruiting for 400 roles as it submitted a planning application at a 38-acre warehouse site in Gildersome in Leeds. This followed the recent opening of four regional distribution centres in Motherwell, Peterborough, Doncaster and a second site in Belvedere. Read more: Lidl opens its largest warehouse in the world in Luton | Retail Bulletin (theretailbulletin.com)

  • Research: The 4 growth drivers of discounters

    Discount Retail Chains, food and/or non-food, are often bacon buyers when things are not going well economically. Yet a budget formula is no guarantee of success, for example variety discount retail chain Big Bazar shows. These are the strategic opportunities and pitfalls for bargain chains, from the P's of every marketing mix: product, price, place and promotion. The figures for consumer confidence and willingness to buy are still well below the average of the past 10 years. Uncertainty about the economic outlook, whether or not combined with the lack of job security, leads to more price-sensitive consumers. That many discounters are successful during economic crises will not surprise anyone. However, discount retail remains a top sport in which entrepreneurs have to sail sharply to the wind in order to be able to profit. How low-cost fighters implement their formula largely determines success, or lack thereof. It is precisely in this segment that clear choices are needed. In a market with often low margins, a wrong choice immediately poses a potential threat to profitability. For example, even in a faltering economy in which discounters have to flourish, there are players who are struggling. From the building blocks of the well-known marketing mix, we look at the strategic choices of non-food discounters, which lead to success or failure. 1. The 'p' of product: product is king The range is a strategic means to distinguish yourself from the competition and to occupy a unique position in the market. Supply must meet a need and have sufficient appeal. Otherwise, the consumer does not come and buy, despite the low prices. For discount retailers, the challenge is to ensure that low prices are not associated with lower quality. Maintaining an acceptable quality standard is essential to maintaining customer trust. The ideal range, both narrow and wide How discounters put together their assortment differs. For example, there are formulas that structurally offer a very narrow and specialized or very wide number of product categories. Per category, items may or may not be in stock, with the retailer usually being able to offer an alternative. This creates a predictable assortment for the consumer, even if a certain brand is not on the shelf. This approach requires a sophisticated purchasing strategy and sufficient scale. It is a strength when discounters are able to purchase (structurally) large volumes and thus enforce low prices. You can also buy directly from producers under their own brand lines. This requires good agreements with producers or wholesalers in order to arrive at the right product and price combinations. It helps if the low-cost carrier is internationally oriented. After all, you can also buy stock in countries where prices are lower than in the Netherlands. Leftovers on the shelf Another method is to buy up residual lots. These are often large batches of goods that manufacturers, wholesalers or other retailers offer at greatly reduced prices because the owner can no longer sell them himself. For example, the product no longer fits in the range, does not meet the quality requirements of the brand, is seasonal or there is simply a surplus. Discounters that respond to residual batches often do not have fixed and predictable product categories. As a result, they can vary with unique or unusual products and offer a sense of variety. The stores simply contain what was purchased at that time in batch trade. The advantage for the consumer is that the prices within this type of discounter are often at the lowest level. He can score a good deal over and over again. Temporary outlet stores Scoring a deal also plays an important role in temporary outlets. Retailers often use this type of store to get rid of residual stocks. Items that do not sell well enough at the normal price, fall (or threaten to) fall out of season or where stocks are too high, are offered at substantial discounts. These items are not purchased at rock-bottom prices, but from the regular business activities of the formula. The approach obviously has a strong negative impact on the margins and therefore the profitability of the outlet. It is mainly a way to get rid of excess stock and release liquidity. By selling the stock instead of writing it off completely, the damage is limited as much as possible. 'Low prices are often linked to lower quality, a major challenge for discount' 2. The 'p' of price: purchase versus sale With a price fighter, the customer expects the best bargains. The higher the 'deal content', the sooner the consumer comes and buys. Discounters respond to this by, for example, stating the original recommended retail price in addition to their own selling price. The consumer is extra stimulated to buy, especially if the offer is too good to pass up. Different purchasing options The discounter must be extremely competitive in terms of purchasing conditions to keep the price in the store low. The purchasing strategy of discounters can differ and form the basis for the final price in the store. Discounters who, as party traders, focus on residual lots, basically work from the purchase price of the goods. When the conditions are good enough, a purchase is made and the right promotions for the store are devised. For example, through multibuy offers such as '3 for the price of 1' or through very substantial discounts on the recommended retail price of a few pieces. Discounters with a more fixed range have to take a different approach. The purchase price is still important, but not always the buyer's starting point. The selling price in the store becomes the starting point. From there, the maximum purchase price is calculated. The selling price must be low enough to be seen by the consumer as an opportunity, fit into the overall store concept and be high enough to provide sufficient margin for operational costs. This procurement strategy requires good relationships with suppliers, in which economies of scale and efficient logistics play a major role. The larger the volumes of the discounter, the better the purchasing conditions can be negotiated. 'The better the deal, the sooner the consumer comes and buys' 3. The 'p' of place: location, location, location When the budget formula has determined its strategy for product and price, one still has to get those products to the customer. Physical stores are a common and traditional method. Online distribution is possible, but has its challenges due to the relatively high delivery costs versus the often low profit margins. Low cost For physical stores, if product and price leave little profit margin, the retailer must make the most of the available retail space. And also keep the costs of housing as low as possible. From location to inventory, all knobs are turned to the maximum to minimize costs. For a discounter, it makes little sense to be at A-locations in important shopping streets. The rents are often at the top of the area. Fine for more traditional retailers or a more margin-rich segment, but with very low margins, an expensive location quickly becomes a threat to profitability. Discounters therefore choose properties in cheaper locations that are easily accessible (parking in front of the door) or have a good approach. Think of shops on the first floor instead of the ground floor. Or in approach streets near the main shopping area. The right look The shop layout plays a major role in the price perception of consumers. The store must look clean and tidy and have a cheap appearance. In addition, customers must be able to navigate easily and find products. Anyone who has ever had to set up a store knows that the costs add up quickly. A lot of time, energy and money goes into the shop design according to a certain concept, even if it has to look cheap. The mission of a discounter is successful when you walk in and think: 'What a cheap look & feel.' Sometimes retail brands turn a less successful establishment into an outlet until the end of the lease. In that branch, excess stock from other stores is sold out. The store itself no longer requires any more investment and serves as a location to quickly reduce stock, while the other stores are neat. 4. The 'p' of promotion: mainstream and mass Retailers are increasingly moving from 'big data' to 'smart data' and try to approach their customers as personally as possible with, for example, personalized offers. This requires a huge amount of information about the consumer and smart technology such as AI. As a result, substantial investments in marketing and IT systems are required. And to do that, solid profit margins are needed again. An interplay that is often not feasible within the discount segment due to the structurally low margins. Leaflets as a weapon For the providers of bargains, leaflets, physically and digitally distributed, are a powerful tool. This allows them to communicate their range, prices and offers widely and both attract customers and maintain a top of mind position. With a focus on mainstream promotional channels and a mass approach combined with the lowest price for a sought-after range, a personal approach is irrelevant for many discounters. Conclusion: discount retail players have a precarious balance sheet Discounters have clear advantages over other formulas during economic uncertainty. However, low-cost carriers are also experiencing challenging circumstances such as rising purchase prices, personnel costs, housing costs and energy costs. In order to be financially successful in this segment, the operation must be tightly controlled. As a discounter, you can be a winner with a sophisticated purchasing and sales strategy, combined with a sharp focus on operational costs. But if you miss the mark on price, product, place or promotion and have insufficient distinctiveness, profitability quickly turns into a loss-making operation. Discount retail requires a clear vision, strategy and excellence in execution, even when economic conditions are in favour. Price fighters and sustainability: it's possible In addition to the P's of the marketing mix, we know the P's from sustainability: people, planet and profit. Discount formulas have a negative image when it comes to sustainability. Nevertheless, discounters can make a positive contribution to sustainability. Bargain chains that buy up residual lots, for example, ensure that products still get a good destination. From a dominant market position, large discounters can play a guiding and compelling role in making the entire value chain more sustainable from transport to production. For example: reusable and recyclable packaging optimize processes to use energy and resources more efficiently launch recycling and waste management programmes Of course, responsible purchasing and product selection with attention to the environmental friendliness of materials, ethical production processes and the lifespan of products. Read more: Zo boek je succes als discounter - RetailTrends

  • Research: Poland is the largest food retail market in Central and Eastern Europe

    McKinsey has prepared a report in which it presents data on the development of individual store formats in Poland, Romania, the Czech Republic, Croatia and Ukraine. In which markets were discounters, supermarkets or convenience stores growing the fastest? McKinsey based its report primarily on Euromonitor and Eurostat data. It shows that in 2022 the value of the Polish market of stationary grocery stores amounted to EUR 72.4 billion. In Romania, this result reached 21.6 billion euros, in the Czech Republic 20.6 billion euros, in Croatia 8.6 billion euros, and Ukraine 15.7 billion euros. The highest increase compared to 2021 was recorded in Romania (16 per cent), and the largest decrease in Ukraine (26 per cent) Our eastern neighbor recorded declines in all categories of this ranking, which in the face of war is a fully understandable situation. In Poland, the fixed channel grew by 2021% compared to 12, by 2020% compared to 19, and by 2019% compared to 21. In each year, the largest increases were recorded in Romania. Discount stores rule in Europe McKinsey also analyzed how the revenue of individual retail formats changed. In the case of hypermarkets, it grew the fastest in the Czech Republic – by 7% compared to 2021, and the slowest, outside Ukraine (-26%) in Croatia – by 3%. In Poland, this indicator reached 6%, and in previous years, respectively, 4% compared to 2020 and 7% compared to 2019. Here, too, Romania in the two previous years led in terms of growth of the largest format, but in 2022 there was a clear slowdown. Last year, Poland turned out to be the leader in terms of supermarket revenue growth rate (11%). Outside Ukraine the slowest growth rate was recorded in the revenues of Czech supermarkets (19%). In previous years, the growth rate of supermarket revenues in Poland was 5 and 4 percent, respectively, compared to 7 and 2020. Of course, discount stores grew the fastest in the entire region. Here, too, Poland with the result of 16 per cent turned out to be the leader of growth. The weakest result was recorded in Romania (9%). Compared to 2020, the revenues of discount stores increased by 30%, and compared to 2019 by 46%. An interesting fact is that in Romania, since 2019, the revenues of discount stores have grown by as much as 61 percent. The convenience channel also grew the fastest in Poland – by 14% compared to 2021. The lowest growth rate, apart from Ukraine (-21%), was recorded by Croatia (5%) Poland also dominated in previous years. Compared to 2020, the convenience channel's revenues increased by 26%, and compared to 2019 by 34%. In previous years, Romania kept pace with us, but in 2022 its dynamics of development of convenience channel revenues clearly slowed down. E-grocery is growing strongly in Romania Poland is also the leader in terms of the value of the e-grocery channel. In 2022, the turnover reached EUR 1.2 billion, which allowed us to slightly overtake the Czech Republic (EUR 1.1 billion). It was followed by Romania (€442 million) and Croatia (€52 million). In the case of Ukraine, no data from recent years have been recorded. Compared to 2021, e-grocery grew the fastest in Romania (31 per cent), and the slowest in the Czech Republic and Croatia (19 per cent). For Polish, this indicator was 21 percent. Compared to 2020, the value of e-grocery in our country increased by 54%, and compared to 2019 by 236%, which was very significantly influenced by the pandemic. However, the largest increases at that time were recorded by Romania. Read more: Poland is the largest food retail market in Central and Eastern Europe. How are individual market segments developing compared to other countries in the region? (wiadomoscihandlowe.pl)

  • Spain: Lidl will invest € 13 million in the opening of two supermarkets in September

    Discount Retail Chain Lidl Spain will open two stores this September in Catalonia and the Community of Madrid, specifically in Barcelona and Madrid capitals. The supermarket chain will invest about € 13 million and create about 60 new jobs with these new openings. On September 7 will open a store in Barcelona capital, next to the Mercè Market, with more than 1,200 m2 of sales room. In addition, the next day 15 will add a new store in Madrid capital with more than 1,300 m2 sales area and about 30 parking spaces. In this way, the company Lidl promotes its sustainable expansion plan throughout the territory, for which in 2023 it plans to invest some € 230 million in the start-up of twenty new points of sale and the expansion of its current logistics infrastructure. Recently, the company has opened a warehouse in Escúzar (Granada) after allocating € 88 million and creating 250 new jobs, and in the coming years it will have another four in Parla (Madrid), Martorell (Barcelona), Constantí (Tarragona) and Villadangos del Páramo (León). Thanks to its activity, Lidl's impact in Spain already translates into more than € 7 Bn per year contributed to GDP (0.65% of the total) and more than 150,000 direct, indirect and induced jobs generated (0.76% of the total), according to PwC data. In its objective to consolidate itself as one of the main companies generating wealth and jobs throughout the country, Lidl has managed to increase its impact on national GDP and employment by up to 50% in the period 2016-2021 alone. Read more: Lidl will invest 13 million in the opening of two supermarkets in September (elinmobiliariomesames.com)

  • Denmark: Lidl acquires more Aldi stores

    Discount Retail Chain Lidl Denmark (owned by the German Schwarz Group) is acquiring further into the Danish market. The German juggernaut has acquired 10 former Aldi stores through discounter Rema 1000. Lidl is also scrapping tobacco in its new stores Lidl already acquired 4 Aldi stores and several real estate Aldi projects after Aldi announced to leave the Danish market. Now Lidl announces the acquisition of another 10 Aldi stores. With the expansion, Lidl now has 154 stores across Denmark. "We set ourselves an ambitious goal of reaching 150 stores in the current business year. With these 10 new locations, we now reach 154 stores. It is an expansion unparalleled in Lidl Denmark's history. A development we are very proud of. All current store employees from the relevant Aldi stores will be offered employment at Lidl, and we look forward to welcoming both new employees and not least our customers in the cities in question," says Jens Stratmann, CEO of Lidl Denmark. No tobacco Due to the scope of the agreement, final approval by the Competition Authority is needed before Lidl takes over the ten stores. Lidl says it will start rebuilding its stores as soon as the legal issues have been settled. Several of the new stores are in cities where we have not had a presence so far. We therefore see it as a good opportunity to establish ourselves in new areas. It is fantastic that we can now add even more needles to the map of Denmark and thereby reach even more Danes. As soon as possible, we will start rebuilding the new stores, and in this connection we are also open for applications, as we are always looking for skilled colleagues, says Mads T. Nielsen, Development and Property Director at Lidl. In May, the grocery chain announced that it is phasing out all tobacco sales by the end of 2028. Therefore, there will also be no tobacco to be found on the shelves of the ten new addresses. Lidl Denmark is part of the German-owned international grocery group Schwarz Group, which has more than 12,000 stores in 31 countries. Read more: German giant expands with 10 stores – Ekstra Bladet

  • USA: Aldi has grown meat sales with nearly 50%

    Discount Retail Chain Aldi USA (German family owned) has managed to achieve growth within the meat category over the past. As meat and poultry were two of the nine key items forecasted to continue rising in price this year, according to recent government data. Scott Patton, vice president of National Buying at Aldi, recently spoke with SN about what the grocer intentionally does and doesn’t do to reduce costs and pass savings onto its customers, from skipping the meat counter to vacuum-sealing products to keep meat at peak freshness. This strategy has allowed Aldi to grow meat purchases by nearly 50% over the past five years. What’s more, Patton says that industry insights such as grocery and category sales trends help it to decide where to focus next by introducing new products, for example, to meet those demands. In 2022, total meat sales were $87.1 billion, with a 98.3% household penetration and consumers taking some 50 shopping trips per year to purchase meat. Sales grew 5.7% versus 2021 and pound sales remained above pre-pandemic levels. As of April, meat still remained the biggest perimeter department, with prices decreasing for beef, pork, lamb, bacon, dinner sausage, and processed chicken. Bacon prices were also down by double digits in April 2023 compared to April last year. “With food prices still on the rise, Aldi customers know they can rely on us for affordable, fresh meat and seafood, including seasonal flavors and premium cuts. We continue to provide value to our shoppers by offering high-quality products at low prices in every aisle, every day,” Patton said. Aldi already has a strong following for private label brands, according to Patton, however, the discount supermarket chain has seen interest grow since inflation began pressuring consumers to make every dollar go further. Year-over-year growth of private label sales was nearly double that of CPG brands (10.3% compared to 5.6%) in the first quarter of 2023, according to data from PLMA. “We know shoppers are increasingly interested in store brands across the grocery industry,” Patton said. Because Aldi stores are stocked with 90% private-label brands, Patton said they are able to closely control the supply chain and cut out inefficiencies of national brand products to offer shoppers more competitive pricing. “For example, during the summer we sell favorites like brats for 49% less than our competitors. That’s because Aldi makes deliberate decisions every day to cut unnecessary costs and champion value for customers,” Patton added. When it comes to the meat aisle specifically, “We look critically at our operations to determine how we can create cost savings without sacrificing quality of experience,” Patton said. Research from FMI shows that while 83% of meat consumers go to stores with a full-service meat counter, 75% of all purchases are made at the self-serve case. By leveraging these insights, Patton said Aldi created a strategy to skip the meat counter and add more savings for shoppers. Overall, Aldi stores are able to keep their footprints small and efficient, and as a result keep labor costs low, allowing employees to focus instead on quality and price. As for looking at where to focus next, Patton said that Aldi pays attention to consumer trends, dietary needs, and changing food preferences, working closely with suppliers and watching shopper behavior in its own aisles to see what is trending as consumer behavior and preferences shift. “This allows us to move quickly from concept to product. We put significant time and effort into ensuring we carry an on-trend selection. For example, over the past 18 months, more Aldi shoppers opted for dairy alternatives like plant-based milk, inspiring us to add plant-based butter to our line-up this summer,” Patton said. Other private label products that have done well for the grocer include the PurAqua Belle Vie sparkling flavored water, and Earth Grown vegan product lines, which started off as Aldi Finds (weekly special) products, but became so popular they are now offered year round. Read more: How Aldi has grown meat sales nearly 50% (supermarketnews.com)

  • Germany: Netto is testing new features for its shopping carts

    Discount Brand Retail Chain Netto (owned by the German Edeka Group) wants to offer a new service for its customers. To this end, the discounter, is cooperating with the shopping trolley manufacturer Wanzl from Swabia. Everyone who works in retail knows how important shopping carts are for supermarkets, drugstores or discounters. They are not only used to transport goods, but also have a great psychological effect. Customers are more likely to shop with a shopping cart than without. The fact is that for several decades it has been common practice for customers in a store to have to use a coin or chip (usually plastic) to release a shopping cart from its holder. This so-called deposit is intended to ensure that people who use a shopping cart bring it back to its intended place. For some years now, it has been the case that more and more people do not take cash with them when shopping or do not have a suitable coin for their shopping cart in front of a supermarket, for example. "Then go to Netto!" Netto is testing a new system for shopping carts in two stores. Specifically, these are the Bavarian stores in Burglengenfeld (Regensburger Straße) and Sünching (Bahnhofstraße). Netto works with the shopping cart manufacturer Wanzl. It is a digital system called Hybridloc. The lock on the shopping cart is unlocked using a coin, chip or smart device. In order to use the digital system called Hybridloc, customers need the Netto Marken-Discount app. There you will find the point “Open shopping cart”. The Wanzl company, the world's largest manufacturer of shopping carts based in Leipheim, Baden-Württemberg, has been testing more options for unlocking the carts for several years. In the future, shopping carts will even be able to be opened using the Netto app if the customer does not have a suitable coin or chip on hand. To this end, the company has now started a pilot test with Netto in two markets. Here it is possible to unlock a trolley with the app by holding the smartphone with the net app open against the handle of the trolley. For the discounter, this is also a good chance that customers will use the Netto app more. The history of the shopping cart The history of the versatile shopping cart as we know it today began 75 years ago in Oklahoma City, USA. There, Sylvan Goldman, owner of the Humpty Dumpty supermarket, wanted to increase his sales and save his customers the often tedious lugging of shopping bags. So he mounted wheels and a metal basket on a simple folding chair and set up the first "shopping carts" in front of his supermarket on September 8, 1937. Only a few years later, he met Rudolf Wanzl, junior manager of a metal goods factory in Leipheim near Günzburg. This encounter is very momentous and the cornerstone for the rise of what is now the world's largest manufacturer of shopping trolleys. It all started with 20 models called "Pick-up", trolleys with two suspended wire baskets, which were delivered from Leipheim to a supermarket in Hamburg in 1949. After the invention of the folding rear end by the American Orla Watson, which allows the cars to be pushed together, Wanzl built the "Concentra" model in 1957. To this day, it is still the basic model of all shopping carts. Wanzl is also currently looking at the market in Asia, where people shop even more cashless than in Europe. It will be interesting to see whether Netto's current test will remain unique or whether other retail chains will follow this new path. Read more: Netto is testing new features for its shopping carts. - Supermarket Inside (supermarkt-inside.de)

  • UK: Aldi UK sets new long-term target of 1,500 stores

    Discount Retail Chain Aldi UK raised its long-term target to 1,500 stores, saying it would invest billions of pounds to achieve it. Aldi UK, whose previous target was 1,200 UK stores by 2025, is opening its 1,000th UK store on Thursday in Woking, southern England. Owned by Aldi Sud, Aldi UK is Britain's fourth-largest supermarket group after Tesco, Sainsbury's and Asda. It has a market share of over 10% according to researcher Kantar. Aldi UK said it will open another 20 new stores before the end of the year, as part of its 1.3 billion pounds ($1.62 billion) two-year investment plan. "The next phase of our expansion will involve another 500 new stores over the coming years. It is a long-term target and is not a ceiling to our ambition to have an Aldi store close to everyone in the UK," said CEO Giles Hurley. Aldi UK and fellow discounter Lidl GB are Britain's fastest growing food retailers.Their appeal has grown during a cost of living crisis now into its second year and, unlike their traditional rivals, they continue to open lots of new stores. The discounters' performance has forced the traditional major players to compete more aggressively. Tesco and Sainsbury's both have schemes that match Aldi prices on key products and are utilising loyalty schemes, while they have accepted a profit hit to keep prices down. Read more: Aldi UK sets new long-term target of 1,500 stores (msn.com)

  • Colombia: Ara stores represent 7% of the revenues of the Portuguese group Jerónimo Martins

    Discount Retail Chain Tiendas Ara (owned by the Portuguese Jerónimo Martins) already represents 7% of the revenues of the Portuguese group Jerónimo Martins, the European conglomerate dedicated to retail. Geographically we find Jerónimo Martins in Portugal, Poland and Colombia. Tiendas Ara's operations in Colombia began 10 years ago with the company's first retail stores and distribution centers. Jerónimo Martins will continue to invest in Colombia Jerónimo Martins manages revenues of more than 25 billion euros per year and has existed for 231 years. Its headquarters are in Lisbon, Portugal. The company is a leader in Poland with discount retail chain Biedronka, with a presence in more than 1,000 towns and cities, 4 million daily visits and 50% of its assets, whether newly built, inaugurated or renovated, in the last five years. The company has an impressive share of private label sales of more than 40% not including fruit and vegetables in Poland, lower in other countries. Ara in Colombia are part of the company's growth strategy, and JM already has more than 12,000 employees in the country, with almost 1,100 stores and a closing of 2 billion euros in annual sales, with a record of more than 42% in private labels. JM has connections with agribusiness, where it ensures a sustainable supply for its production. This includes dairy, livestock, aquaculture and fruit/vegetable businesses. The company's sales achieved solid figures during the first 6 months (2023), and consumer demand remained strong despite inflation. Pressure on household disposable income was particularly strong in Colombia, but price sensitivity and cautious behaviour were the rules, not the exception, for each geography in which the company operates. According to one Wall Street firm: "Colombia is experiencing high and long-lasting inflation (one of the problems of investing in South America), which has led to increased volume pressure on food retail and increased downward trade." Read more: Tiendas Ara representan el 7% de los ingresos del grupo portugués Jerónimo Martins (pluralidadz.com)

  • Poland: Lidl Polska increases employee salary and benefits

    Discount Retail Chain Lidl Polska (owned by the German Schwarz Group) continues its commitment to providing attractive working conditions for its employees. For years, the Lidl Polska chain has been focusing on creating favourable work environments, offering both competitive earnings and various non-wage benefits, informs Lidl. Thinking about employees and their families, it offers accident insurance for children and additional support in the context of the upcoming school year. Lidl Polska is a place where employees have a chance to build a stable career and improve their competences. Currently, Lidl employs over 27,000 people. Store employees earn here from 4,200 to 5,600 PLN gross. After one year of work from 4,400 to 5,350 PLN gross, and after two years from 4,600 to 5,600 PLN gross. The warehouse crew, in turn, earns from PLN 4,800 to 5,500 gross at the beginning, after a year of work from PLN 5,050 to PLN 5,900 gross, and after two years from PLN 5,300 to PLN 6,400 gross. Store managers who are just starting their job can count on even higher earnings. In the first year, they receive from PLN 6,700 to 7,000 gross, in the next from PLN 7,000 to 7,400 gross, and after two years from PLN 7,800 to PLN 8,300 gross. Each of them is also entitled to a company car. The chain emphasizes that it employs "for years" apart from attractive terms of engagement, the advantages of working at Lidl Polska are opportunities for professional development. The company also promotes gender pay equality and internal promotions. The employer's position is also stable, despite changes in the labor market, the trade industry continues to function well. Protection for family and children An extremely important element of the Lidl Polska employee offer is the introduction of annual accident insurance for children and grandchildren of employees, covering accidents up to 25 years of age. Thanks to this protection, in the event of an accident, the costs of treatment, rehabilitation and other medical expenses no longer constitute such a financial burden for the families of employees. Thinking about the upcoming school year, Lidl Polska also offers support for employees whose children are entering a new stage of education. In addition to accident insurance, the chain also offers school layettes for first graders, enabling a smooth start of a new chapter in children's lives. Wider benefits package Lidl Polska makes sure that employees have access to support in many spheres of life - emphasizes the discounter. In addition to high salaries, higher than average wages in trade, the chain guarantees its crew a wide package of non-wage benefits such as private medical care, group and tourist insurance, MultiSport and Medicover Sport cards, training or layettes "for a baby" and a first grader. Additionally, the company provides a free support program for a psychologist, lawyer and financial advisor. Lidl Polska is consistently guided by the values of caring for employees and creating a friendly atmosphere in the workplace. The salaries offered, an extensive benefits package and a focus on the family provide a solid foundation for the professional and personal satisfaction of employees. Read more: Lidl Polska increases earnings and benefits Source: dlahandlu.pl

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