Discount Retail Chain Okay's (owned by Belgium Colruyt) store visit should not take more than twenty minutes, according to director Christophe Dehandschutter. The convenience store chain wants to conquer the cities and win younger customers for Colruyt Group. Sharp choices For just over a year, Dehandschutter has been managing director at Okay, Colruyt Group's convenience store chain that now has 163 branches in Belgium. He came to the helm with a clear mission: "Okay is a nice enseigne and a good brand, but it showed some lack of sharpness. Jef Colruyt instructed me to grab it. In the meantime, we have made clear choices, which we are now implementing." Because food retail is simple, but not that easy, says Dehandschutter: "Food retail is moving boxes, simply put. But why is it that not all food retailers are successful? What is necessary to be successful?" Focus is the secret: you can't be the best at everything, you have to excel in well-chosen areas and stick to them, always and everywhere. Speed and convenience In the case of Okay, it's all about accessibility: "Speed and convenience are the essentials for Okay. We have the smallest stores on the market, with the great advantage that we are literally close to our customers and shoppers are quickly inside and out. We have set ourselves the goal that we have to be faster than e-commerce. A shopping trip at Okay may take no more than twenty minutes." In this way, Okay makes life simple for its customers. All campaigns, communications and actions should be about this, says the director. And if you bring other groceries , such as lowest prices in the neighborhood or freshness of fruits and vegetables, they should always fit into the "easy" story for the customer. "We never want to go along with the issues of the day. Every crisis, other retailers suddenly shout that they are also cheap. That doesn't work. What do you really stand for? You always have to tell the same story, keep knocking on the same nail. If this consistent positioning corresponds to an important customer need, so convenience and time at Okay, then your brand resonates with the customer." Targeting the younger consumer For expansion, the convenience store chain is now mainly aiming at the cities. There are two main reasons for this. "One: we are not there enough as a group. Our most important store concept, Colruyt Lowest Prices, simply does not fit in city centres, and our competitors have a historical advantage there. Walmart in the United States or E.Leclerc in France face the exact same challenge. With Okay, we can continue in the cities." "Two, we need to seduce the young consumer. Younger consumers no longer automatically end up at Colruyt. It used to make sense: if your parents were Colruyt customers, you would go shopping with them. Young people no longer do that, and as a result they know Colruyt less well. It is precisely in the cities that many younger people live and study. With our small city shops, we want to ensure that students get to know Okay." Local shops still welcome Okay opens an average of six stores a year, with the ambition to go even faster. "In the cities, these are relatively small buildings, which are rather easy to find. There is room in the center of the cities due to the disappearance of many other retail. And local shops are still welcome and needed in the cities, where more young people are choosing to live. Many municipalities scoff when a supermarket wants to be added, after all, there are already quite a few. But that's not the case in the cities." Read more: [Interview] "Shopping at Okay: faster and easier than e-commerce" - RetailDetail GB

Discount Variety Retail Chain Poundland owner Pepco has posted an 11% increase in sales and 23% boost in revenue as trading remained strong due its “strong progress against strategic objectives” but the discount giant warned trading has been tougher in its third quarter. The Warsaw-listed group, which owns Pepco, Poundland and Dealz said an uncertain trading backdrop had continued through April into May, with weaker consumer sentiment around discretionary spend in response to high inflation, particularly in Central Europe. Sales grew 11.1% across the group, with Pepco sales rising 15.8% and Poundland rising 4.9% on a like-for-like basis in the six months to March 31. The group praised its progress in its growth strategy for the results, which saw its total number of stores at the end of the trading period reach 4,127- up 12% year on year. It is on track to open at least 550 net new stores during the current financial year and is confident on the EBITDA outlook for the full year. Last month, Poundland said it is continuing to seek out locations in the M25 for its new store format, following successful openings of the value retailer‘s local stores during the last six months in East Dulwich, Clapham, Swiss Cottage and Whitechapel. Pepco Group chief executive Trevor Masters said: “The Group continued to make strong progress against our strategic objectives over the half year, while delivering an increase in revenues and underlying EBITDA. We opened 166 net new stores in the period and are confident on meeting our target of at least 550 net new stores this financial year, as part of our targeted and profitable opening programme. “Our growth strategy in Western Europe is progressing well, reflecting the strong appeal of the Pepco brand to customers across the whole continent. Italy, where we recently opened our 100th store, and Spain, which is benefiting from our combined clothing, general merchandise and FMCG offer, continue to be our largest and fastest-growing Western European territories. In May, we were delighted to launch the Pepco brand in Portugal. “As we highlighted previously, inflation remains at elevated levels in Central Europe, against which trading in Pepco stores has remained challenging during the third quarter to date. Despite this, we have continued to do the right thing for customers on a budget by maintaining our price leadership and growing our market share, while focusing on the cost of doing business in these inflationary times. “We remain well positioned and in the second half will see gross margins trending upwards, as we benefit from the tailwinds on certain input costs, including commodity and freight. We are focused on executing our strategy and remain on track to deliver full year EBITDA growth in line with previous guidance. I would like to recognise our colleagues and suppliers across the business and thank them for their hard work and commitment to serving our customers.” Read more: Poundland owner Pepco posts strong sales thanks to store expansion strategy - Retail Gazette

Discount Retail Chain Lidl Germany (owned by the German Schwarz Group) opened its first discounter in Ludwigshafen. This makes the company not the first retailer with the low-cost concept, but it is the most successful. While competitor Aldi is in a permanent crisis, the Schwarz Group is opening up completely new business areas. Just-in-time for Lidl's 50th birthday, the price war is back at discounters. Whether it's butter, cheese or pasta, the five-decade-long competition with Aldi has been given a new lease of life by recent undercutting battles. Experts do not see the big price turnaround in the face of high inflation. For consumers, however, the comparison of time-limited offers could be even more worthwhile in the future. And apart from the prices, the cards among the discount top dogs have now been reshuffled. The history of the Schwarz Group, based in Neckarsulm, which today includes Lidl and Kaufland, dates back to 1930. At that time, Josef Schwarz founded the food wholesaler Lidl & Schwarz KG. His son Dieter Schwarz later joined his father's business and opened his first discounter in Ludwigshafen in 1973, 50 years ago today. This was the cornerstone of an empire with around 12,000 stores in over 30 countries today. With sales of over 100 billion euros, Lidl was the largest discounter in the world in 2021. Lidl was actually one of the late bloomers: The first Aldi store opened its doors as early as 1962 and started the triumphal march of the discount concept with narrow, pallet-filled aisles, a limited selection of items and low prices. Norma followed two years later. Penny, like Lidl, then appeared on the scene in 1973. "Lidl's recipe for success was that, like Aldi, they worked with a limited range from the very beginning. But they also made themselves distinguishable right from the start by also carrying branded goods," says retail expert Thomas Roeb from the Bonn-Rhein-Sieg University of Applied Sciences. Lidl had adhered to this concept stringently and aggressively, focusing on expansion and at the same time keeping its costs under control. "At the end of the day, it's all about the price" Martin Fassnacht from the WHU business school in Düsseldorf also says: "These are efficiency machines." The discount principle has moved with the times, in the meantime, the stores have been more beautifully designed, the selection of items has increased. "But at the end of the day, it's always about the lower price." Consumers in Germany, which has traditionally been price-sensitive, have recently had to swallow a lot in view of the increased energy and procurement costs. Prices rose sharply, especially for the otherwise inexpensive private labels of discounters, as Fassnacht observes. The recent reductions in butter, cheese or pasta are a signal that things can go the other way again. "One can hope that the worst is now over. But we have to say goodbye to the idea that prices will return to their original level in the short and medium term," says Kai Hudetz, Managing Director of the Institute for Retail Research (IFH) in Cologne. Energy will remain expensive for the time being, and staff will also be more difficult to obtain and therefore no longer as cheap as it used to be. In addition, neither retailers nor manufacturers wanted to give up the price level. For the next few years, it is therefore more likely that Lidl, Aldi, Penny and Co. will increasingly advertise for consumers with time-limited special promotions and offer prices, so it could be worthwhile to compare offers. In direct comparison to Aldi, experts currently see Lidl in a position of strength: "Aldi is in a permanent crisis," says Roeb. At Aldi Nord, for example, there has been no investment in stores and customer networks for too long. And Aldi Süd has lost its concept leadership. The result, he says, is slower growth. In addition, the dual structure is dragging its feet on the topic of digitization, says Fassnacht. "Lidl is more powerful, faster and more agile." For example, Lidl has not only brought a digital customer card to the people and is diligently collecting data. According to the Cologne-based retail research institute EHI, Lidl is also one of the top ten German e-commerce retailers even though Lidl hardly offers any groceries online. Aldi does not even make it into the top 100. Scandals and debates have little effect The Schwarz Group is also currently positioning itself as a digital service provider and is already one of Germany's largest cloud providers. In addition, around the company's headquarters in Neckarsulm, financed by the foundation of the reclusive Dieter Schwarz, not only educational institutions or a programming school have recently sprung up. The money from the patron, who gave up the operational business back in 1999 and, according to the business magazine Forbes, is the richest person in Germany, will soon also flow into a large research center for artificial intelligence in nearby Heilbronn. But debates and scandals also accompanied the history of Lidl. For spying on employees, for example, the discounter was fined a total of 1.5 million euros in 2008. And currently, the company is receiving fierce opposition from Deutsche Umwelthilfe for an advertising campaign with presenter Günther Jauch on what Lidl considers to be an ecological disposable bottle, the "circulating bottle". The company conceals unpleasant results and uses outdated data, according to the accusation. Lidl is aggressively countering this with press releases and a number of interviews. However, it is not apparent that such debates have a negative impact on business, says Fassnacht. "The consumer forgets quickly." In addition, the discussion about the "circulating bottle" also underlines that Lidl has undergone a change of image: away from the secretive company, towards active communication and positioning in public. But despite all the new openness an iron rule remains: There will be no interviews or official photos with the now 83-year-old founder and owner Dieter Schwarz for the 50th anniversary. Read more: Größter Discounter der Welt: Die "Effizienzmaschine" Lidl wird 50 Jahre alt - n-tv.de

Discount Retail Chain Lidl Poland (owned by the German Schwarz Group) will entrust the implementation of shared service e-invoicing in all its countries in Europe to Comarch, a company originating from Krakow, reports the Polish-German Chamber of Industry and Commerce. Lidl will use as-a-service e-invoicing from Comarch throughout Europe The solution provided by Comarch enables the fulfillment of legal obligations in the field of exchange of e-invoices, e-reports, e-transport messages, as well as future important areas by which the system can be extended. Comarch cooperates with Lidl as a strategic partner on this project, taking responsibility for the lawful implementation in all target countries, even in the trial phase before making a commitment. Comarch for Lidl Lidl uses Comarch services in areas such as: contact with business partners and authorities, document verification, format conversion, data extraction, status notifications and data transfer. The introduction of e-invoicing means both higher data quality and lower operating costs for Lidl. Carrefour among Comarch clients Global software company Comarch was founded in 1993 in Krakow. It currently employs more than 7000 employees in 100 countries. Comarch has gained experience in the most important industries: telecommunications, finance, banking and insurance, trade and services, IT infrastructure, public administration, industry, healthcare, as well as in the sector of small and medium-sized enterprises. The clients of the Krakow-based company are for example Carrefour, Red Bull, Kompania Piwowarska and Colgate-Palmolive. Lidl is one of the largest food retailers in Germany and Europe. The company operates a total of over 12,000 stores in currently 31 countries and has more than 200 distribution and logistics centers. Read more: Ten polski gigant IT będzie pracował dla Lidla (dlahandlu.pl)

Discount Textile Retail Chain Zeeman (Dutch family owned) will grow its 'consumer turnover' by 115.3 million euros in financial year 2022, according to the filed CSR report. The company achieves a turnover of 931.5 million euros. 'Consumer turnover' has been on the rise again since 2020. In that year, the company recorded a turnover of 740.6 million euros. In 2021, this amounted to 816.2 million euros. The company's net sales in 2022 amount to 774.2 million euros. This is 95.7 million euros above the level of one year previously. There is no mention of the operating result in the report. With a growing turnover, the number of items sold is also growing. Zeeman sold 290.7 million items in the year 2022. This is 4.6 percent more than one year previously. The year 2022 was also the year in which Zeeman further expanded its Resale program. Since the beginning of that year, the textile supermarket has been collecting clothing in all Dutch stores. In May, the programme rolled out to Belgium. A total of 33,673 second-hand garments were sold. That is about 13,000 more than in 2021. Zeeman expects 'challenging macroeconomic and global developments' in the coming year In addition, the report discusses the expansion of the stores and the launch of the new store concept. "The quality of the store stock has improved by renovating buildings and by closing less well-performing stores," Zeeman said in the report. At the end of 2022, the textile supermarket had 1313 stores, of which 454 stores in the Netherlands and 267 stores in Belgium. In addition, 2022 is the year in which Zeeman rolled out its webshop to countries such as Germany, Luxembourg, Spain and Austria. In April 2023, Zeeman crossed the Portuguese borders for the first time. Financially, the company expects the coming year to be dominated by 'challenging macroeconomic and global developments'. Read more: Turnover growth textile supermarket Zeeman continues (fashionunited.nl)

Discount Retail Chain Aldi USA (German family owned) said as food prices remain high, it remains committed to creating value for its shoppers, no matter what’s going on in the economy. This summer, through strategic and intentional efficiencies, Aldi is passing along even more savings to its customers by dropping prices on more than 250 items to save Americans over $60 million. “We don’t want high grocery prices to get in the way of Americans doing what they love this summer, so we’re taking charge to champion value in a way that only Aldi can. We’re reducing our already low prices on some of the season’s most popular items to make sure summer plans aren’t disrupted,” said Dave Rinaldo, co-president at Aldi U.S. “Whether our shoppers are traveling, heading to a game or enjoying time by the pool, we are committed to offering quality food and essentials at the lowest prices possible so they can enjoy life outside the grocery aisle.” As more shoppers reach for easy and on-the-go options to keep up with their busy summer schedules, Aldi is slashing prices across its aisles. The new savings on some of its best-selling summer products will further establish Aldi as a low-price leader in the communities it serves, extending the Aldi Price Promise to help shoppers fill their carts for less. Read more: ALDI slashes prices targeting $60M in savings | Produce News (theproducenews.com)

Discount Retail Chain Aldi USA offering delivery of nearly 2,000 popular items in as fast as 30 minutes. Through its partnership with grocery technology company Instacart, Aldi has introduced a virtual convenience store that promises delivery in as fast as 30 minutes. Dubbed Aldi Express, the service will give shoppers access to nearly 2,000 of the most-shopped Aldi items from more than 2,100 of its locations throughout the United States. "We know our customers live hectic lives, and sometimes that means they don't have time to make it to the grocery store, even for a quick trip. Through Aldi Express, we're making shopping more convenient so you can satisfy a craving or get a missing ingredient in minutes," said Scott Patton, VP of national buying at Aldi. "Together with Instacart, we'll continue to find ways to innovate and make the online grocery experience even more effortless and accessible." "We're proud to deepen our partnership with Aldi through the introduction of Aldi Express. With this launch, we're making it easier for customers nationwide to get their favorite Aldi staples delivered faster than ever before," said Ryan Hamburger, VP of retail at San Francisco-based Instacart. "We know how important it is to get what you need when you want it, whether it's a last-minute delivery for a missing dinner ingredient, milk for the baby or simply wanting a late-night snack." Aldi first partnered with Instacart for delivery services in 2017, and the two now offer delivery from 2,200 Aldi locations, as well as pickup from 1,500 stores. In 2018, Aldi started offering alcohol delivery through Instacart, and Aldi was one of the first retailers to accept EBT SNAP online through Instacart in late 2020. In May, Aldi shared that it is reducing prices on more than 250 products perfect for the summer. The grocer is touting savings on a range of items for summer-specific activities, including packages of trail mix for outdoor adventures are now $2.19 compared to the previous $2.79, while a pound of sliced salami ideal for picnic baskets retails for $5.99 instead of $6.49. As summer officially arrives, the retailer is again partnering with Alex's Lemonade Stand Foundation (ALSF) to help find a cure for childhood cancer. For each limited-time ALSF-branded bag of lemons purchased throughout June, Aldi will donate 50 cents to ALSF, up to $1 million. Aldi is one of America’s fastest-growing retailers, serving millions of customers across the country each month. With about 2,200 stores in 38 states, Batavia, Ill.-based Aldi U.S. employs 45,000-plus associates and is No. 26 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. Read more: ALDI Unveils Instacart-Powered Virtual Convenience Store | Progressive Grocer

Discount Retail Chain Lidl GB (owned by the German Schwarz Group) is to introduce vacuum-packed, recyclable packaging across its beef mince range. Shoppers will receive the same amount of high-quality 100% British beef mince, while collectively saving over 250 tonnes of plastic a year through the new packaging, according to the retailer. The introduction of the new packs will double the current shelf life of Lidl’s mince from eight to around 16 days. The retailer has estimated this will halve the amount of beef mince food waste in store. There were also increased benefits to shoppers, said Lidl, with an easy-peel film meaning they would not have to touch raw meat. Lidl said the move would reduce plastic use by almost two thirds (63%) and would save space in logistics, resulting in up to 350 delivery trucks being taken off the road per year. The new packaging will be on shelf early next year. “It’s hugely important that our plastic reduction strategy is centred around a progressive circular programme,” said Shyam Unarket, Lidl GB’s head of responsible sourcing & ethical trade. “By ensuring that any new packaging is recyclable, we’ll be able to help prevent plastic pollution in our environment. When the new packaging arrives in store early next year, we know that the huge benefits both from a sustainability and practical perspective, will be welcomed by our customers,” he added. The move follows the same change being made to Sainsbury’s mince packaging in February, which was met by backlash from consumers. One Twitter user said the meat looked “gross” in its new vacuum packaging, while another asked “why have you replaced your perfectly fine beef mince with a beef mush alternative?” Read more: Lidl introduces vacuum-packed packaging across beef mince lines | News | The Grocer

Discount Retail Chain Aldi UK is turning off lights in all its supermarkets in a bid to save cash, as retailers continue to look for ways to compete with rivals and deliver lower prices for shoppers. According to the Telegraph, Aldi is understood to be cutting the number of lights it has switched on across all its supermarkets from this month, as part of measures designed to cut energy bills and help towards net zero efforts. It follows a trial where the German grocer turned off some of the lights in four stores earlier this year. The reduction is not expected to affect shoppers’ experiences with Aldi adding that eco-friendly moves, including the installation of heat pumps across all new stores, will help to lower prices for shoppers. A spokesman told the title that these new measures, including introducing more energy-efficient LED lighting into stores, “will reduce our energy consumption by around 10pc, whilst maintaining an excellent in store experience for our customers. Through measures like this we’re able to make our stores even more sustainable and maintain our position as the UK’s lowest-priced supermarket.” Other grocers, including Morrisons and Co-op, have also trialled dimming lights this year, something the latter said would save it as much as £4,000 per store. The steps come as grocers seek to ward off a move by Downing Street to introduce a price cap on essentials to help tackle the ongoing cost of living crisis. Read more: Aldi dims lights across all stores in a bid to slash soaring energy costs - Retail Gazette

Discount Retail Chain Aldi Belgium claims that shoppers really get in and out of its stores in under 20 minutes. Accurat.ai, a location intelligence company, tested this claim. Our analysis found that almost half of Aldi's customers complete their shopping within the 20-minute timeframe. Aldi's most direct competitor, Lidl België & Luxemburg, comes in a close second, with around 44% of its customers accomplishing their shopping expeditions in under 20 minutes. However, when comparing larger stores such as Colruyt Group and Hypermarket Carrefour Belgium, it comes as no surprise that the percentage of customers who finish shopping within 20 minutes is (way) lower. The size and scale of these stores, as well as the average basket sizes, typically contribute to longer shopping durations. So next time you're in a hurry, discounters Aldi and Lidl might just be your go-to destinations for quick and efficient shopping experiences!

Discount Retail Chain Lidl UK (owned by the German Schwarz group) is giving its electronic shelf price labels (ESL) a new design. As the "Lebensmittel Zeitung" reports, the prices are now displayed in black in a white box, which should ensure better readability. The color red is now displayed less prominently on the offer signs. Particularly practical: The ESL now also shows the price that you pay as a Lidl Plus customer for the respective product. In the future, this will be sold in black next to the normal retail price. The loyalty program, which was launched in 2018, is now available in all 30 European Lidl countries. New electronic price tags at Lidl According to Lid, the ESL's new design has been "rolled out on all existing electronic price tags." An adaptation of the software was apparently not necessary for this, which is why the rollout could take place so quickly. The electronic price tags are currently being introduced bit by bit throughout Europe. In Germany, all prices in the fruit and vegetable departments as well as the action areas are now provided with the digital signs. Read more: Lidl will display two prices for food in the future - FOCUS online

Private labels now make up 38% of total FMCG value sales in Europe as shoppers continue to look for deals on everyday groceries. A total of €229 bn (£199 bn) of private labels were made. According to Circana’s latest biannual FMCG Demand Signals report, which analysed data from European retailers in UK, France, Italy, Germany, Spain, and Netherlands, showed a strong Q4 2022 market performance despite prices of private labels rising higher than national brands. The firm found that shoppers all across the continent turned to private labels for better prices, quality and value, which includes over 230 FMCG categories, and more than 2,000 product ranges. The report also revealed strong private label growth across all six of the largest markets in Europe, with the highest penetration in Spain (47%) and Germany (41%), and the lowest in the UK (37%), where shoppers continue to buy the national brands. Another key finding from the report showed that national brands aren’t necessarily losing loyalty, but shoppers are buying smaller volumes. In November, small and mid-sized manufacturers accounted for 36% of total FMCG value sales in Europe. Shoppers are also choosing more private labels for edible goods, with the biggest price inflation almost entirely centred on food categories like chilled, fresh, and ambient foods. Among non-food categories, there has been greater penetration of private labels in household care, especially staples such as laundry and hygiene items. In fact, private label shoppers are seeking a balance of price ,with 78% actively looking for the lowest prices, and quality, with 72% paying attention to product labels and 63% checking product claims on every shopping trip. Retailers are trying to counter this by introducing innovative products around new trends, such as zero or no-alcohol beers, or plant-based meat. “Private labels have come a long way since their arrival on the shelves approximately 40 years ago,” Circana global SVP of strategic growth insights Ananda Roy said. “Retailer investments are paying off as more consumers perceive private labels as being innovative and as good or better than many of the national brands that they compete with. “As a result, they are no longer the ‘cheap’ alternative. Shoppers buy them because they offer something new and of good quality. Source: Grocery Gazette #smartdiscount #europe #privatelabel #pl #circana #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting